[Applause]
hi my name is Akash Patel
Picard out so this is a review of
short-term interest rates and then
theorem defy space and I thought I would
have a unique view because I see
plumbing a little bit so I just kind of
want you I wanted to give you guys my
take it this is my opinion on it so
again this is not financial advice again
this is just a review of the interest
rates and you know just what are those
some of the potential risks this is a
little bit of my biography that like
sixty years of market making experience
on the your side chains of Massage
change okay so one of the big points
that want to make is courtesies not a
currency unless it hasn't yield so try
to keep that in mind and then let's go
through the history a little bit so you
know make your CDs customer of January
2018 with a rate of 0.5% civilian fee by
Ryuji to July 2018 dye supply increases
to a lot of fifty billion the biggest
use case for dye is you know people are
basically using it for leverage
so they lock up thirty eight they've
been died they sell that dye and buy
something else usually so that's another
key point where they selling it to
they're selling it to market maker so
initially market makers were loaded up
on duck and they're they're about five
big market makers in the space so this
is a quick chart to show you kind of the
growth of dye supply over time you know
start sub-zero coast about 80 million
currently this one is to look at the the
blue line is basically telling you the
civilian fee
interest rate right so most of the time
is half a percent 2018 it it went to two
and a half and then back to half a
percent in 2018 2019 is where it gets a
lot more interesting and and we'll get
into the story block so again this is
just a dye USD price from BitFenix this
is to remind everyone kind of what the
chart looked like for eath during this
time period so 'if you know to us a big
fall from 1200 all the way down to about
80 and then it's back up to kind of
around 200 so again this is another
truck just come again describing the
youth type egg soon you know the orange
lines the peg so it's kind of there's a
better shot here okay so this is kind of
one of the most important shards have
where things got a lot more interesting
so as you can see the orange line kind
of around April you know we're hitting
about 95 cents on the peg and this is
kind of where it gets a lot more
interesting because the market makers
basically get overloaded with dye and
again the purpose of a mark maker is to
essentially you know provided quiddity
but not really cold long-term positions
so then the maker token holders their
only option was to increase interest
rates cause people to close off their
CDs thus by diavik bring it back from a
95 cent price back to $1.00 so another
good sharp is this charm from
which a strawberry and this basically
describes the dye pack and the different
interest rate so long as we're going on
so this kind of middle area is when it
was around 1% defaults 95 cents they
start increasing interest rates and
finally you can kind of see the peg
lifting and coming back to the dollar
and and you know eventually they go to
70 and a half they reduce it then they
go all the way to 20 okay so what are
the things we learn there's a huge
market for eight colors one of leverage
long and probably true from two coins
and they're willing to pay a high
interest rate close to a ceiling of 15%
for CPS but the normal flow of Dianna be
with dyed admit to that sold mark makers
and not a lot not oh not a lot of
natural flow to my god because there's
no initial yield so dice of light
decreases the CDs close this created
opportunities for doubt my compound
and finally longtime owners had a yield
and they get Dom ahead long-term
contracts compound had variable interest
rates so this is a quick chart but look
the yield that you can get on the other
platforms you know so dr. kadar then the
main controllers basically degrees from
20 percent down to 10 but the cool thing
is now we find out to weight flow which
is their sellers attack for leverage the
buyers have died for one hi Neal and
these are quickly couple of the
platforms you can easily use with two
clicks of a button this is a big
explosion of protocols and we have a
bunch of places where you can earn up
like high yield okay so final thoughts
they get a person on currency unless it
has healed and I believe kind of yield
as a killer out it's gonna bring a
billion users to here
[Applause]
you