So the second you transfer any digital asset into a #celsius account beneficial ownership changes. Its no longer your asset.
This means your ability to manage risk becomes binary - either the assets are with Celsius or not with Celsius.
So what? As long as they pay out best in market returns why would you care? 1) Risk vs return. Bitcoin or bottletops, Buffett or Saylor- it doesn't matter who or what you can't disconnect risk from return.
So even if you made the perfect portfolio allocation when you first opened your account by only transferring a portion of your assets you were willing and able to lose and your risk appetite was in perfect alignment with Celsius and the returns they were able to generate.
What is perfectly aligned at the start can and will diverge. I can tell you from personal experience anyone thinks that they know what level of risk appetite they are willing to bear has no idea until it hits you like a fucking freight train.
If you own a business and you borrow against that business and you fail they take the asset off you.
Securities lending is the opposite. The lender runs their business on the back of your asset. He fails you lose your asset.
unfortunately 10s of thousands of #celsians didn't read the small print #celsius
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Tomorrow I'll walk through my calculations as to how #tether was able to increase their reserves by $700m and then spruce it as a profit.
Until then here's a couple of points to ponder. 1. #nontokendebt - This is something I've broken out in every analysis I've done on Tether's attestations.
Its literally the most important in their numbers.
I've been tracking #tether's attestations since they started publishing them.
I'd like to think that I provide more granular reporting then they do themselves.
I generally try to update the shared sheets and provide some commentary with a week or so of the attestations being released. I haven't had the chance to this quarter...as well I've had real world shit to do ....
I was kinda champing at the bit to write up a few tweet storms as all the fanboys were shilling the amazing $700m profit #tether had made in the Dec quarter alone....
So today quickie is #genesis top 10 creditor #Donut
Self proclaimed #web3 pioneer who's competitive advantage is the use of Decision Tree Risk Modelling Tools....awesome web3 word salad.
even though their product is on pause due to #genesis their principal lending partner blowing up.
They still proudly claiming that their #proofofreserves liquidity ration is still 100%+
As a #web3 pioneer with next gen decision modelling tools and a industry leading #defi platform just how well did donut.app mitigate their exposure to #genesis?