/biz/ - Business & Finance

>>17193517
>So glad I cashed out half my ETH tonight.
>I ordered this watch on Amazon and it came this afternoon with my earnings. I'm going to buy back in when its under 10.00

Is this a Billposting board now?

The capital markets rely on the repo markets to fund leverage. Meaning, a bank can buy treasuries and then offer these treasuries at a "haircut" less than 100% of market value and receive a 1 day or more loan on this collateral.

The bottleneck in the system is investment banks no longer really exist and have been replaced by money center banks "too big to fail".

The current repo market is archaic and has been devastated by regulation making it ineffective.

The reason the Fed does not lend directly to non-dealers is to protect the Fed from undue risk.

Therefore to solve the repo market volatility, and to ensure all the excess capital is utilized in the US economy, the Fed needs to support an electronic market place where treasuries can be used as collateral for capital.

The benefits are enormous in achieving a digital marketplace for US treasuries and excess capital. It keeps treasuries in demand and provides capital for those that have collateral while removing risk for the Fed.

A digital repo market would be built on top of an API that would find the value of the collateral and a "hair cut" for the liquidation risk.

A digital system able to match collateral with capital accepting US treasuries with the least haircut creates more demand for US treasuries replacing the Fed.

How do I make a Chainlink adapter?