Could we farm the interest rates from World Currencies, World real estate and World car loans… Could it be possible?
Car loans on the blockchain? I think I know where this is going…
Andre said he didn’t want anything to do with the risk of strategies that can’t unwind completely. I believe the problem is that a fractional reserve system is required to make yield on illiquid assets. When everything is instant and composable this also opens up risk for an attack where someone deposits a lot of money pretending to be multiple parties and then withdraws at once to get cheap asset liquidations. Maybe this could be mitigated with insurance/buffer pools if there are willing counterparties though. Seems some variant of this concept is going to be implemented with the yETH vault. This does feel like something that will have workarounds and some sort of implementation in the future but it’s not for this now early stage.
Thank you for your reply. As I see it the automatic interest farming machine is being made, therefore, in due time we should be able to farm the credits and interest rates of the world and everything there is to farm