Zac Prince (BlockFi) on Navigating Through the Storm (EP.329)
On The Brink with Castle Island
Market Makers, Liquidity Is the Fuel to Your Business
The institutional demand to borrow in this market is actually highly elevated. A let's say you had a hundred million dollars o borrowing that you had done two months ago, while those other three linders pulled back,. That probably went from a hundred down to forty. So call it roughly a 60 % decrease. This ball park numbers in liquidity that's available to you as a market maker. And so what that means is that the two lenders remaining in this example, are able to charge more at a time where the opportunities for market makers to make money have increased.
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