jer979Purpose Struggle
Yesterday, I decided that my blogging career should come to an end. I was doing myself a disservice. I told myself that the goal of the posts was to dig deeper, peel back the layers, get down to the core. But by publishing online (or on-chain as the case may be), I was subconsciously writing for others, even if I told myself that I didn't care if others read. So, in an effort to be more authentic, I figured I'd stop publishing and start doing a private journal. Within 2 hours of that decision...
jer979Value. Happiness.
I feel happy. It's fun, it's light, like a feather floating at the beginning of Forrest Gump. But, like the feather, it's not grounded. It can flitter and float away. Value is also ephemeral. We know it when we see it. We feel it, somewhere deep inside. Something connects to us, saying "yes, this is worth it." The "it" that it's worth is energy. Energy in the form of time, attention, money. The things of which our possession is limited. There's a reason why all the great traditions point to "...
jer979Coffee with AI
Every day for the past month, I’ve had a coffee date with AI. I literally sit down, with a cup of coffee, with an appointment on my calendar that says “coffee with AI”. During that time, AI (I’ve used ChatGPT, Gemini, Perplexity, Claude, and Venice) and I literally have a chat, the way I would with a friend. It’s not “write this letter for me” or “do this or that.” No, it’s a chance for us to have a conversation about whatever topic I want. Many days, recently, at least, it’s been about quant...
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jer979Crypto Fixed Income
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jer979Crypto Fixed Income
jer979Purpose Struggle
Yesterday, I decided that my blogging career should come to an end. I was doing myself a disservice. I told myself that the goal of the posts was to dig deeper, peel back the layers, get down to the core. But by publishing online (or on-chain as the case may be), I was subconsciously writing for others, even if I told myself that I didn't care if others read. So, in an effort to be more authentic, I figured I'd stop publishing and start doing a private journal. Within 2 hours of that decision...
jer979Value. Happiness.
I feel happy. It's fun, it's light, like a feather floating at the beginning of Forrest Gump. But, like the feather, it's not grounded. It can flitter and float away. Value is also ephemeral. We know it when we see it. We feel it, somewhere deep inside. Something connects to us, saying "yes, this is worth it." The "it" that it's worth is energy. Energy in the form of time, attention, money. The things of which our possession is limited. There's a reason why all the great traditions point to "...
jer979Coffee with AI
Every day for the past month, I’ve had a coffee date with AI. I literally sit down, with a cup of coffee, with an appointment on my calendar that says “coffee with AI”. During that time, AI (I’ve used ChatGPT, Gemini, Perplexity, Claude, and Venice) and I literally have a chat, the way I would with a friend. It’s not “write this letter for me” or “do this or that.” No, it’s a chance for us to have a conversation about whatever topic I want. Many days, recently, at least, it’s been about quant...
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tl;dr: when fixed income comes to crypto (and works), the big money will really start to flow. It’s coming.
According to the ICMA Group, the size of the global fixed income market (as of August 2020-so it’s probably bigger now) is more than $128 trillion.
From what I understand, and I’m not a fixed income expert, fixed income dwarfs the rest of the market. Intuitively, this makes sense. Most people are risk-averse and like predictability.
So it is probably not so surprising at all that the world of fixed income has come to crypto.
Recently, I’ve come across three projects,
which are in the crypto fixed income game.
Each of them has a slightly different model in terms of how they disintermediate the middlemen, use smart contracts, blockchain, tokens, and governance, and I haven’t spent enough time playing around with them (the high Eth gas fees are a problem for my exploration), but they are obviously going to solve a market need…which is the desire for predictable yield.
As Element’s Medium post describes:
Typical fixed rate interest offered in traditional markets vary between 0.1–1%, whereas, the DeFi markets offer access to APYs ranging from 5–25%. DeFi is lucky to have high APYs, which makes getting involved pretty appealing but as you will read below, there are many more reasons why DeFi and fixed rates can be attractive.
Given that, the maturation of the crypto fixed income market, and the poor yields in the world of “TradFi,” it’s no wonder that, as discussed yesterday, banks are starting to feel it.
tl;dr: when fixed income comes to crypto (and works), the big money will really start to flow. It’s coming.
According to the ICMA Group, the size of the global fixed income market (as of August 2020-so it’s probably bigger now) is more than $128 trillion.
From what I understand, and I’m not a fixed income expert, fixed income dwarfs the rest of the market. Intuitively, this makes sense. Most people are risk-averse and like predictability.
So it is probably not so surprising at all that the world of fixed income has come to crypto.
Recently, I’ve come across three projects,
which are in the crypto fixed income game.
Each of them has a slightly different model in terms of how they disintermediate the middlemen, use smart contracts, blockchain, tokens, and governance, and I haven’t spent enough time playing around with them (the high Eth gas fees are a problem for my exploration), but they are obviously going to solve a market need…which is the desire for predictable yield.
As Element’s Medium post describes:
Typical fixed rate interest offered in traditional markets vary between 0.1–1%, whereas, the DeFi markets offer access to APYs ranging from 5–25%. DeFi is lucky to have high APYs, which makes getting involved pretty appealing but as you will read below, there are many more reasons why DeFi and fixed rates can be attractive.
Given that, the maturation of the crypto fixed income market, and the poor yields in the world of “TradFi,” it’s no wonder that, as discussed yesterday, banks are starting to feel it.
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