In “traditional finance”, we’ve got something called a derivative. In short, a derivative derives it’s value based on some underlying asset. In the “new finance” world of blockchain and DeFi, we’ve got something called a stablecoin, where the price of the coin is pegged to some underlying asset. So a stablecoin is just a derivative… Continue reading When does it stop being a stablecoin?
While blockchain remains highly volatile, both as a technology and as assets tied to them, I’d like to take a step back and review the approach. What is a blockchain? It’s a linked list of events, linked together through some cryptographic hashing mechanism, that forever ties one block to another. And such a blockchain is… Continue reading A different take on blockchain with encrypted functions
For a while I’ve wanted to write something about stablecoins, these tokens on the blockchains, that are backed by some underlying asset. Usually we associate stablecoins with those backed by a currency, like USD or Euros. But it doesn’t need to be backed by currency, it can be backed by commodities, stocks, bonds, etc. This… Continue reading Stablebomb
What would you do if you could borrow a near unlimited amount of money, only need to pay the interest, and not need to provide any collateral? Sure, we have something like that with credit cards, at an outrageous interest rate, and with fairly small credit limits. But what if I’d give you this non-collateralized… Continue reading Flash loans
I’m sure many of us have heard of, or are familiar with, companies buying and selling property. Instead of some human owning it directly, they might own the property through a firm they set up. There are many reasons why this structure might be used, but tax is certainly one of these reasons. I’ve previously… Continue reading Wrapping NFTs for fun and less tax