The SEC has told us it wants to sue us over Lend. We don’t know why

Re:The SEC has told us it wants to sue us over Lend. We don’... by thaumasiotes on Wednesday September 08, 2021 @03:57AM (#28454382)

I'm guessing the concept is more like stock lending fees. You short a stock by borrowing shares and selling the borrowed shares. You'd short USDC the same way, if you could borrow them.

The thing is that this really isn't an investment. An investment looks like this:

- You ask me for funding for a project. I give you funding, in cash or in kind, and I get (partial) ownership of the project. If it does OK, I get some money. If it does better than that, I get more money. If it does badly, I don't get much money.

A rental looks like this:

- I need a piano for 6 months. You have several pianos. You let me have one, and every month I can either give you $50 or return the piano.

Stock borrowing works that second way, except that instead of a piano, it's a share of AAPL. There is no project involved, but the share of AAPL lives in my house instead of your house, and every month you get $0.04.

Interest is also on that second model, so in that sense it's not different from interest. But neither is the piano rental.

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Re:The SEC has told us it wants to sue us over Lend. We don’... by TomSwirly on Wednesday September 08, 2021 @05:51AM (#28455013)

This is an investment. "To invest is to allocate money with the expectation of a positive benefit/return in the future."

If I put money in your bank-like-thing, expecting to get more back at the end, it's an investment.

> I'm guessing the concept is more like stock lending fees

Those are investments too. Their technical name is "repos", short for "repurchase agreements".

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Re:The SEC has told us it wants to sue us over Lend. We don’... by umanwizard on Wednesday September 08, 2021 @06:46AM (#28455339)

> You ask me for funding for a project. I give you funding, in cash or in kind, and I get (partial) ownership of the project. If it does OK, I get some money. If it does better than that, I get more money. If it does badly, I don't get much money.

That’s venture capitalism which is just one of the many different types of investing. Buying pianos in order to lend them out is another type of investing.

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Re:The SEC has told us it wants to sue us over Lend. We don’... by thaumasiotes on Wednesday September 08, 2021 @11:19AM (#28458385)

> Buying pianos in order to lend them out is another type of investing.

But the example here is renting out a piano you already have, not obtaining a piano so you can rent it out.

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