How Crypto Offers 10% Yields

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Coinbase Prime. Coinbase Prime combines advanced trading, battle-tested custody, financing, and prime services in a single solution. Clients have used our comprehensive investing platform to execute some of the largest trades in the industry because we are the only publicly-traded company with experience trading and custodying crypto assets at scale. Get started with Coinbase Prime today at coinbase.com/prime.

[00:02:13] - [First question] - Why does a massive difference in interest rates exist between crypto and money market accounts

[00:05:12] - The average spread market makers earn on crypto assets

[00:08:22] - The trade of going long BTC spot, shorting the near term future, and the type of interest rate or yield the trade creates

[00:12:34] - Explaining what it means to have a delta view and to be delta long and delta neutral 

[00:12:50] - Genesis’ loan structure and framework

[00:16:02] - How collateralized lending can be a zero loss business 

[00:18:36] - Percentage differences between collateralized and uncollateralized loans and their uncollateralized loan process

[00:22:25] - Types of uncollateralized parties and how they are using their debt 

[00:24:22] - Has Genesis seen defaults and low masses on the uncollateralized business

[00:25:18] - Overview of Genesis, their divisions, and how they make their money beyond lending

[00:27:50] - His view on a healthy market structure and how short sellers help the market function

[00:29:32] - What traditional prime brokers do and how much of Genesis is modeled off of them

[00:31:44] - Why the crypto and TradFi worlds can’t simplistically blend

[00:34:22] - Will Genesis ever bridge the prime brokerage business into traditional assets

[00:35:28] - DCG’s founding, what it is, and Genesis’ role in the DCG empire

[00:38:06] - How much interplay Genesis has with other DCG companies

[00:43:28] - Does he feel like he works for Genesis or for DCG 

[00:44:46] - How integral Genesis is to platforms like BlockFi, Gemini and Celsius

[00:48:49] - How systems are tested when there are drawdowns and how counterparts interact with each other

[00:52:12] - Knock-on effects that could lead to a ‘Lehman style event’ given crypto’s systemic risk nature

[00:55:18] - How Genesis participates in the DeFi markets and their biggest gating issues

[00:58:26] - Views on centralized and decentralized exchanges 

[01:00:35] - His desire to share data and the PIF protocol

[01:02:42] - Why NFT lending makes sense given its different risk profile from crypto

[01:05:08] - What he’s most excited about building over the next 6 months and the next 6 years