Live From DAS: The Return of Bitcoin-Based Lending | John Glover
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I think really what we're working on is not to do anything that's groundbreaking. We're just working on bringing more traditional finance type products into this industry, and doing that in a very simple way. We we've we're big believers that the best restaurants have the smallest menus. We're trying to be very focused on being the best Bitcoin back lender into the space.
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John. Let's just kick it off quickly. Quick intro about yourself. Quick intro about Lend.
Sure. My name is John Glover. I'm the CIO of Lend. Lend is a, first and foremost, a lender of dollars against Bitcoin, and ETH collateral to the retail sector globally. But we also, on the other side of that, need to fund that book. So we are also a very big borrower of dollars backed by Bitcoin.
Perfect. Let's let's just start it simple. Right? Why Bitcoin? What what makes Bitcoin this pristine collateral for this kind of job? Well,
I come from, many, many years in TradFi as a lot of us do. And, when I look at the collateral that we were accepting when I was in the banking world, they were things like t bills or stocks or other, asset classes that had distinct trading hours. So they're open from, you know, 09:30 to 04:30, Monday to Friday, no holidays, closed on weekends, closed in the evenings. And so you had price gap risk. When you're accepting that as collateral and you have a liquidation threshold, you've got this gap risk that, you know, someone you've got Tesla stock that you've taken as collateral. Elon does somet
Yeah. Okay. Perfect. Makes sense. So how about you give us a more holistic view of the Bitcoin lending space in general? How we've come from a couple years ago from the, you know, the Celsius's and the block fives of the world to where we are now.
Yeah. I mean, it's been a really interesting journey especially for, you know, for someone who already had a lot of gray hair to start. I've got a lot more since I got here. But, so when when I joined, Lenden, I was I was hired to help with the risk management of the firm. And when I looked at what some of our competitors were doing, it was really concerning to me. Because they were paying yield on tokens that didn't have an institutional lending market, so there's no way to generate yield on the tokens that they're paying yield on. We saw we were approached by people like Three Arrows Capital
it's always sad to hear, and it's a very common theme in the space where the bad actors, malicious or otherwise, end up taking down the rest of the space with them, especially reputational wise. But, let let's dive a little bit deeper. So how does your Bitcoin back loans differ from a traditional loan that most of us are used to here? Really
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