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From YouTube: FIL Borrowing Market Dynamics - Matthieu Jobbé Duval
Description
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A
So
today
I
was
invited
by
protocol
labs
to
talk
about
five
coin,
boring
market
dynamics,
something
that
lester
just
touched
upon,
and
so
I'm
gonna
give
you
a
cornish
perspective
really
on
the
u.s
side
of
the
world.
A
So
before
I
dive
in
a
quick
note
on
coin
list,
maybe
not
all
of
you
are
familiar
with
the
firm.
So
at
a
high
level.
Coin
list
manages
token
sales
organizes
token
distributions
and
custody
and
then
allows
for
secondary
trading
of
such
tokens.
So
how
is
conless
involved
in
the
filecoin
ecosystem?
A
It
might
be
obvious
for
a
huge
exchange
such
as
yob,
less
so
for
a
smaller
company
such
as
us
colonists
organized
the
fundraise
of
filecoin
about
three
years
ago,
so
we
organized
all
the
fundraise,
the
investments
and
and
the
shafts,
and
we
also
were
contracted
by
protocol
apps
later
on,
to
organize
the
distribution
of
the
filecoin
tokens,
which
means
in
practice
that
on
main
net
day
when
the
safts
became
filecoin
tokens,
a
large
majority
of
early
investors
chose
to
receive
those
filecoin
tokens
directly
in
their
coinless
wallet.
A
All
these
investors
had
already
kyoac,
then
onboarded
with
coinless
three
years
prior
because
we
ran
the
sale,
so
it
was
extremely
simple
for
them
to
just
come
over
and
receive
the
five
coin
tokens
in
their
coinage
wallet.
So
what
does
this
mean
in
practice?
It
means
that
coinless
is
going
to
oversee
the
distribution
of
80
million
file
coin
tokens
between
today
and
the
end
of
the
vesting
period.
Three
years
from
now
about
80
percent
of
the
entire
fine
coin
being
distributed
are
going
to
be
distributed
in
cornless
wallets
directly.
A
So
that
makes
coin
list
the
largest
custodian
of
firecoin,
of
course,
after
protocol
labs.
So
we
had
been
preparing
for
such
a
launch
and
for
such
an
event
for
a
long
time,
and
we
knew
that
after
main
eight
day,
there
would
be
a
huge
amount
of
interest
from
the
borrower
community
to
get
access
to
five
coin
tokens
to
borrow
those
tokens
and
so
congress.
Being
such
a
large
holder
via
our
users,
of
course,
a
fight
coin.
It
was
our
responsibility
to
make
sure
that
that
market
demand
was
met
with
appropriate
supply.
A
So
this
is
for
the
high
level
overview
of
what
coinless
is
currently
involved
in
this
market.
Now,
let's
look
a
little
deeper
at
the
lending
boring
market
of
five
coin
and
who
does
what
so,
first
of
all
who
lands
firecoin.
A
So
up
until
today
we
have
limited
the
ficon
lending
product
to
two
types
of
users:
accredited
investors,
a
high
net
worth
individuals,
rich
people,
basically
and
entities.
Those
entities
are
sbvs.
A
Family
offices,
venture
capital
firms,
essentially,
who
invested
in
firecoin
a
while
back,
were
both
lucky
and
smart
three
years
ago
and
who
are
now
receiving
large
amount
of
firecoin
every
single
day
block
by
block,
and
there
is
a
great
news
that
I'm
happy
to
share
with
you
today
is
that
we
are
about
to
open
filecoin
lending
to
everyone
else
on
the
platform.
Anyone
who
holds
one
file
coin
on
coinlist
will
be
able
to
lend
it
so
many
people
are
holding
ficon
right
now
and
would
like
to
lend
them.
A
Why
would
they
want
to
lend
it's
super
simple?
They
just
want
to
earn
yield
more
and
more
in
2020
has
been
the
year
of
d5,
most
certainly
and
the
year
of
yields
and
people
now
expect
to
be
earning
an
interest
rate
on
any
asset
that
they
possess
in
crypto,
and
it's
certainly
true
for
five
coin.
However,
these
this
infrastructure
and
those
yields
do
not
come.
You
know
magically.
It
has
to
be
paid
by
someone.
A
A
So
why
are
these
players
looking
to
borrow
file
coin
and
something
that
lester
touched
upon
just
a
moment
ago
for
miners
again,
the
the
need
is
coming
from
the
fact
that
there
is
a
requirement
to
collateralize
their
operation
with
firecoin
to
be
able
to
grow
their
operation.
As
lester
said,
many
many
machines
are
sitting
idle
not
being
actually
put
on
the
network,
because
there
is
no
five
going
to
collateralize
such
machines.
A
A
The
working
capital
side
of
things
is
fairly
easy
to
grasp.
Ficon
is
a
very
hot
commodity.
At
the
moment,
it's
brand
new,
it's
trading
on
a
bunch
of
exchanges.
It's
one
of
the
top
20
cryptocurrency
as
a
result,
prices
among
platforms
worldwide
will
vary
bit.
Offer
spreads,
will
vary
for
market
makers
and
arbitrages
to
be
able
to
capture
the
price
differences
of
firecoin
between
china,
australia,
france
and
and
and
the
us
they
need
to
have
five
coin
working
capital
to
be
able
to
buy
and
sell.
A
So,
as
I
said,
coinless
put
together
a
marketplace
about
a
month
and
a
half
ago
to
satisfy
the
need
that
borrowers
had
to
borrow
firecoin
and
allow
our
lenders
coinless
users
to
earn
an
interest
rate
on
the
five
coins
sitting
in
their
wallets.
So
what
does
that
marketplace
look
like,
and
what
have
we
done
so
far,
so
we
started,
as
I
said,
early
november
2020.
A
So,
of
course,
some
entities
in
there
some
family
offices,
but
the
lion's
share
of
it-
is
accredited
investors
by
allowing
that
population
to
be
open
to
more
retail
users,
we're
going
to
drastically
increase
that
number
and
increase
the
size
of
the
loans
that
we're
going
to
be
able
to
close
for
coin
list.
The
process
is
extremely
efficient
because
the
firecoin
is
already
in
our
custody.
We
only
need
to
receive
the
file
coin
holder
approval
to
lend
such
file
coin
and
transfer
the
tokens
around.
A
Unlike
other
exchanges
who
need
to
receive
the
file
coin
or
the
user
to
buy
the
file
coin,
we
are,
by
definition,
the
place
where
the
fight
coin
gets
vested.
So
we
are
the
number
one
place
where
five
coin
really
is
is
being
available,
so
this
is
for
the
start
in
the
last.
As
I
said,
60
days
give
us
now.
What
does
those
loan
look
like?
A
A
There
are
fixed
terms
very
important
to
stress
that
it's
a
fixed
interest
rate
on
firecoin.
Why
is
it
important
for
borrowers
to
have
a
fixed
interest
rate
because
they
need
to
project
their
costs?
It's
very
simple:
the
borrowing
interest
rate
for
a
borrower
is
a
cost
right,
so
either
it's
a
cost
of
putting
on
a
trade
or
a
cost
of
collateralizing
a
rig,
but
at
the
end
of
the
day,
it's
a
cost
that
comes
out
just
like
any
other
cost.
A
So
if
the
interest
rate
is
floating
such
as
what
would
be
available
via
d5
implementation,
it
becomes
a
lot
more
complicated,
because
if
tomorrow
my
api
can
double.
Maybe
I
have
no
reason
to
borrow
that
firecoin.
So
for
miners,
especially
it's
important
to
be
able
to
project
in
the
future,
with
some
sort
of
certainty,
the
size
and
api
at
which
they
will
be
able
to
borrow.
A
A
This
number
changes,
depending
on
the
borrower,
we're
facing,
but
usually
85
percent,
is
the
rough
average
that
we've
done
so
far
and
finally,
the
apy
the
interest
rate
at
which
the
borrower
takes
the
fight
coin
is
best
bid.
What
does
that
mean?
So,
let's
get
into
the
details
of
the
of
the
bidding
process?
A
Every
friday
coin
list
offers
a
certain
amount
of
file
coin
to
our
on-boarded
borrowers.
So
we
receive
interest
from
our
lenders
from
saturday
to
friday.
Our
lenders
raise
their
hand
and
say
hey.
I
want
I
want
to
lend
my
file
going
for
three
months
for
six
months
and
we
raise
notional
we
raise
notional
and
raise
national
and
every
friday
we
put
a
clip
on
auction.
It
might
be
a
hundred
thousand
five
coin
or
like
today
we
close
four
hundred
thousand
five
coins
just
this
morning
with
the
number
of
borrowers.
A
So
it
depends
on
on
the
friday.
Sometimes
it's
big,
sometimes
a
little
smaller,
never
less
than
a
hundred
thousand
five
coin,
though
the
loan
size,
the
we
don't
have
to
lend
everything
to
one
borrower.
A
borrower
can
borrow
just
a
small
amount
of
five
coin,
but
we
set
that
minimum
size
at
thirty
thousand
five
coin.
A
As
I
said,
the
total
available
size,
minimum
100k
total
sometimes
way
more
rarely
less.
And
finally,
the
process
is
is
the
following:
we
ask
borrowers
to
place
their
firm
bids
and
their
size
in
friday
morning,
which
is
either
friday
evening,
china
time
friday
morning,
u.s
time,
so
we
ask
them
how
many
fine
coins
would
you
like
to
get
for
what
kind
of
interest
rate
maybe
50k
at
30,
maybe
80k
at
45,
so
yeah
we
get
another
book
that
is
not
transparent.
It's
fully
controlled
by
coin
list.
Centralized.
A
The
idea
here
is
that
the
best
bid
wins.
So
it's
a
it's
a
price
priority,
so
the
person
beating
the
highest
will
get
his
size
first
and
then
the
second
and
then
the
third.
There
is
no
last
look.
The
process
is
fair
and
we're
not
planning
to
productize
this
process
because
we're
only
dealing
with
you
know
a
dozen
borrowers
who,
anyway
are
not
do
not
necessarily
want
to
connect
to
a
ui
to
to
run
that
process.
A
They
are
happy
to
just
transact
directly
otc
with
us,
so
that
is
the
the
rough
overview
of
our
product
again
centralized
every
friday,
a
reasonable
size
of
file
coin
going
for
action,
and
if
eboro
wants
to
participate
for
stats
to
onboard
with
us
and
then
he
will
be
in
the
process
and
be
involved
every
friday
into
that
that
auction
scenario.
A
So
finally,
I
want
to
I
want
to
talk
about
quickly
about
the
volatility
of
five
coin.
Api
protocol
labs
asked
me
to
touched
upon
the
future
for
the
five
coin:
borrowing
market
and
the
five
coin.
Interest
rates
has
been
extremely
volatile.
Here
I
graphed
the
synthetic
apy
on
filecoin.
I
extract
this
data
from
the
futures
curve
and
the
spot
curve
on
different
derivatives
exchanges.
So
importantly,
this
is
not
the
historical
api
that
coinless
has
transacted.
A
This
is
the
fair
value
in
derivatives
market,
assuming
you
can
access
spot
and
futures
and
again
something
I
can
touch
upon
during
the
q
a
but,
as
you
can
see,
it
went
from
250
percent
in
in
the
first
few
weeks
of
launch
to
currently
between
30
and
60.
A
It's
still
extremely
volatile
when
you
think
that
bitcoin
apy
collateralize
goes
between
two
and
four
percent
on
any
given
year,
sometimes
spikes
around
five
or
six,
but
rarely
above
that,
so
you
know
if
bitcoin
is
the
is
the
ust
bill,
then
firecoin
would
be
the
you
know,
triple
c
bond
of
of
an
automaker,
extremely
volatile.
The
future,
though,
points
towards
stabilization,
something
that
is
fairly
clear
in
that
graph
loans.
Will
you
know
api
will
end
up
stabilizing
around
a
fair
market
value?
A
Why
should
that
be
the
case?
Because
there
is
going
to
be
increased
supply
mathematically
every
single
day?
There
is
more
investing
happening,
more
people
taking
their
fico
and
more
people
landing
those
five
coins.
As
I
said,
we
lend
20
million
dollars
of
fight
coin
in
the
last
two
months.
This
is
probably
going
to
double
in
the
next
couple
of
weeks,
because
it's
just
a
lot
of
firepoint
being
vested
every
single
day,
so
that
will
mean
normalization
of
api
less
stressful
for
borrowers.
A
Of
course,
the
process
will
be
smoother
because
there
is
less
uncertainty
around
around
the
volatility
from
a
week
to
another
and
finally,
of
course,
defy
involvement.
We
just
had
a
representative
from
ren
come
and
show
us
the
the
rap
file
coin
that
they
have
there's
other
rapid
coin
out
there.
It
is
very
interesting
in
that
it
opens
five
coin
yield
opportunities
to
the
broader
market.
A
However,
there
are
two
things
as
lester
pointed
out:
it
is
by
nature,
open
and
transparent,
which
means
that
people
can
use
rapid
going
to
speculate,
but
mostly
d5
still
has
not
completely
sorted
out
the
fixed
versus
floating
interest
rate
conundrum,
which
is
really
not
a
a
matter
of
building
a
feature,
but
of
fixing
the
way
the
smart
contracts
are
built
and
not
fixing
it.
It's
just
the
way.
Smart
contracts
are
working
now
and
you
would
need
a
centralized
party
to
take
on
the
fixed
versus
clothing
risk.
A
So
this
is
this.
Is
I
reached
my
15
minutes?
So
this
is
the
end
for
me.
Thank
you
very
much
for
listening
in
and
hopefully
I'll
be
talking
to
you
during
the
q,
a.