[Analysis] Crypto lending: too good to be true? - Roy Learner

Crypto lending, as divided between custodial and non-custodial, has large implications for the democratization of wealth, writes Roy Learner in Wave. Custodial lenders like BlockFi are the biggest crypto lenders but are sure to lose a few steps as non-custodial, technical lenders like Dharma mature. Crypto has three lending categories: speculation and hedging, trading and arbitraging, and as working capital. Today, the first remains the largest use-case with working capital being relegated to the backseat, often because of the high-interest rates hovering from 6% to 11%. The ability for regular crypto holders to loan at high yield is another step in the financial revolution. If you have enough capital, only a few clicks stand between you and 8-10% APR.

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