Aquanow Digital Dives: Things That Make You Go Hmmm… 🤔 — Vol. 21

Ok, so what happened?

Unfortunately, we can’t answer this question with precision because the inner workings of digital asset lenders are carried out in a black box fashion. In many ways, this isn’t dissimilar from the traditional banking system. You don’t know what exactly your financial institution does with your deposits, but regulation and insurance provide comfort. In fact, you might even take that for granted.

Who’s got exposure?

What happens next?

I’m not saying that Seashell is making fraudulent claims or that the model is broken, but the communication is opaque and from my perspective, some of the risk/return assertions are questionable. If an aggregate of the most institutional-grade lending pools is sitting at less than half of your return target, then in order to achieve the desired results, you’d likely have to increase your risk.

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