Rob discusses RWA lending risks

by Freddenver: Crypto

Rob says there’s a problem building in the market right now ‘I don’t want to talk too much about the lending market because I benefit from the lending market and I happen to like them but there’s a lot of lending, not all lending markets are created equal one lending market right now has done a very good job of diligence in the RWA’s that allow onto it’ ‘That if they ever needed to be liquidated they could be liquidated I say that as one of those backstops, another lending market is a lot more permissionless, and that lending market has been lending out against these things without ensuring that there’s adequate secondary market liquidity’ ‘You don’t have to dig too deeply to realize that if any one of the RWA’s on this lending market gets impacted ever and I don’t think that the RWAs that are on there now are bad, I think they’re actually very good I just worry’