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A comment on Shorting Tether for Fun and Profit. Parent comment

Re:Shorting Tether for Fun and Profit by robocat on Sunday January 08, 2023 @03:25PM (#34302715)
> People often miss that "omg high interest rate" for a few days translates into a very little expense in absolute terms

That is assuming crypto rates are like USD bank rates.

Do you know any structural reason the rates can’t spike to a Megapercent (annualised) rate or higher? If you are being charged interest, and the rate spikes, you could lose your collateral quite quickly (and it seems likely trading would be stopped so you might not even be able to close out).

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Re:Shorting Tether for Fun and Profit by SilasX on Monday January 09, 2023 @09:40AM (#34310796)
Yes, I do -- you can look at how the borrow rate varies with the fraction of available tokens borrowed, e.g.:

https://compound.finance/markets/USDT

It saturates at a pretty low level.

I have no idea what you mean by the expression "like USD bank rates" though. Fixed? (bank rates aren't that, necessarily)

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