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RE: LeoThread 2023-07-20 14:20

in LeoFinancelast year

Collateralizing wBTC or ETH and then borrowing against it is a giga brain move, but the gatekeeping is real

You need to collateralize minimum $7500 in order to borrow $3500

That's a filter most people in crypto will never pass

But ⬇️

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But if a high rep Lion gathers funds from people (say $500 each), opens a multi-Lion vault, borrows DAI against the funds, and re-distributes the borrowed amount, it opens the door for small cubs to these investments.

IF managed correctly

This is where great investments ideas born 🚀 🤑

Now you just learned in very simplistic terms how a hedge fund works.

But the question is, would anyone be interested in doing or joinning this?

@khaleelkazi food for thought. Democratizing access to finance

Or if Leo builds its own lending and collateralization programs, we could do it al inhouse.

Yes, the only issue I see here is volume. Perhaps when we 10x our market cap.

But maybe we wait for the market to need it, don't build it so they come, especially if there are 1Mx larger protocols out there offering the same concept.

Yes exactly. I would love to do this but our market needs to grow more

Also for volatility concerns

LEO can move 3x up or 2/3rd down in a single day because it's a $1M market cap

Wen $25M market cap, things will be a lot different