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RE: Fun with Fed Funds

in LeoFinance2 years ago

Well we are a long ways from rising rates in an expanding economy environment.

Ideally we would have a free market in money and real world market participants would come together to create an interest rate that reflects actual supply of money and actual demand for money.

But that's just not how the broad monetary system works.

It is how defi lending protocols work though. We can see when utilization rates for BNB or whatever get high interest rates skyrocket.

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