Sam Bankman-Fried and Matt Levine on How to Make Money in Crypto | Odd Lots

Algorithmic stable coin is not very reliable because the assumption about the underlying volatility assets could break once in a while. Consider Long-Term Capital Management.

Gives a brilliant and very cynical description of the Ponzi nature of yield farming in DeFi. Shed some light on how it is no so different from startups nowadays that keeps raising more money despite net negative return, as long as they have a grand narrative with a big promised profit at the end.

Stable coin can have advantage over fiat money in the long term, especially in use cases like international transfer.

Trillions of TradFi money is still trying to get into crypto. Fear of breaking regulation is slowing them down. Bullish for crypto asset.

TradFi companies are trying to package together financial instruments other TradFi companies feel comfortable buying so that they don't have to hold crypto due to various regulatory complications.

Market will be more efficient but volume will also get bigger. Opportunity will still be there for big player like FTX.