We Study Billionaires - The Investor’s Podcast Network BTC177: The Future of Bitcoin Borrowing and Lending w/ Max Kei (Bitcoin Podcast)
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Apr 10, 2024 Max Kei, a veteran in Bitcoin risk management and founder of Hodl Hodl and Debifi, discusses the evolving landscape of Bitcoin lending and borrowing. He emphasizes the importance of peer-to-peer, fully collateralized lending and explores innovative strategies to minimize risks. Max introduces the concept of 'super collateral' and highlights how multisig security enhances safety in transactions. Additionally, he shares insights on the potential expansion of fiat loans on Debifi, paving the way for new opportunities in decentralized finance.
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Custody and Rehypothecation
- Max Kei disagrees that platforms like BlockFi and Celsius were run irresponsibly due to their size.
- He emphasizes the core issue is custody and rehypothecation, not company size.
Bitcoin Lending Risks
- Avoid commingling funds and rehypothecating collateral, especially with Bitcoin.
- Prioritize over-collateralization and peer-to-peer lending for reduced risk.
Bitcoin: A Super Collateral
- Bitcoin is revolutionary as collateral due to its high liquidity and global accessibility.
- It offers collaborative custody options, mitigating counterparty risks.