(1/4) If you didn't catch it, $SPELL just added two 0%-interest lending markets, $wBTC and $wETH
I see this as a move meant to help the protocol sustain itself through bearish times.
$BTC and $ETH are the hardiest, most downside-resistant assets in a bear market.
I see this as a move meant to help the protocol sustain itself through bearish times.
$BTC and $ETH are the hardiest, most downside-resistant assets in a bear market.
(2/4) So people are willing to borrow against them even in bearish times.
As long as Abracadabra can sustain TVL it can continue to be valuable.
And while demand for leverage dries up in a bear market, *hopefully* these two assets can drive new borrowing demand.
As long as Abracadabra can sustain TVL it can continue to be valuable.
And while demand for leverage dries up in a bear market, *hopefully* these two assets can drive new borrowing demand.
(3/4) But that demand is far from dried up, for now.
Despite market-wide liquidations, there is still plenty of demand for both $UST and $sSpell borrowing 'cauldrons'.
Despite a $1 billion lending market for $UST, it remains very much in demand with just $1800 available.
Despite market-wide liquidations, there is still plenty of demand for both $UST and $sSpell borrowing 'cauldrons'.
Despite a $1 billion lending market for $UST, it remains very much in demand with just $1800 available.
(4/4) I don't think we're headed for a crypto winter.
But if we are, $SPELL is making the necessary preparations.
That's not to say the price won't go down if $BTC and $ETH dump: it will.
But I think it will also survive until things turn around.
But if we are, $SPELL is making the necessary preparations.
That's not to say the price won't go down if $BTC and $ETH dump: it will.
But I think it will also survive until things turn around.
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