Galaxy Brains The State of Crypto Lending w/ Max Bareiss
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Apr 17, 2025 Max Bareiss, Head of Lending at Galaxy, dives into the evolution of the bitcoin and crypto lending market, exploring the fusion of centralized and decentralized finance. He highlights innovative lending structures and the role of Bitcoin as collateral. Beimnet Abebe from Galaxy Trading offers sharp insights on economic policies, market fluctuations, and the broader implications of tariffs on consumer sentiment. They discuss the shifting dynamics of the dollar and how these factors affect investor behaviors in a landscape ripe with financial uncertainty.
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DeFi Lending Survived Celsius Collapse
- The first creditor to get repaid in Celsius's collapse was DeFi due to automatic liquidation protocols.
- DeFi lending experienced transparent, auto-liquidations that performed well compared to centralized lenders failing.
Centralized Lending Offers Personalized Service
- Centralized lending offers personalized client service like 24/7 margin call management.
- Such white glove service is unavailable in DeFi, which relies on automatic liquidations.
Diverse Strategies Among Miners
- Bitcoin mining firms vary in how they hedge their Bitcoin exposure post-2021 downturn.
- Some hold large Bitcoin stacks strategically while others sell steadily depending on their focus.