Fahmi on Lombard lending and Musk
by Freddenver: Elon Musk
Fahmi's whole point about Lombard lending comes down to how the mega-rich never actually sell anything. Elon Musk is the example he keeps coming back to: the Tesla shares didn't get sold to fund Twitter, the bank took them as collateral and lent against them, and the Twitter purchase followed. Larry Ellison gets the same treatment, living a very grand life by borrowing off his Oracle shares rather than cashing them in. That borrowing-against-what-you-hold idea is the backbone of it. Where Fahmi takes it next is a partnership that would let clients do this privately, with a private DEX from those partners set to be announced publicly. Private borrowing and lending with private liquidation is on the way too. The reason given is that these partners have been on other chains, seen their growth stall there, and decided privacy is what gets them to a large audience.
Transcript (en)
Elon Musk, I've often said it, didn't buy Twitter by selling his Tesla shares. He parked it with the bank. The bank lent and borrowed against it. He has then gone on to buy Twitter. Larry Ellison at Oracle lives a very grand life by borrowing off his Oracle shares. So what money will allow is that private way of Lombard lending for their clients. So that's a partnership. We'll have a private DEX coming through that we'll announce publicly soon. We'll have private borrow lending with private liquidations that will also come through. These are partners that have worked in other chains where they've seen a stagnation of their own growth and they recognize they need a privacy solution around it to really get to like a large audience.
