Quote from: leen93 on April 16, 2019, 12:18:11 PM

Quote from: PrimeNumber7 on April 16, 2019, 05:09:54 AM

Quote from: leen93 on April 16, 2019, 02:19:00 AM

interest : 2% a year

You can try to borrow on whatever terms are acceptable to you, but I think the interest you are offering is too low. If someone was willing to lend at 2%/year, they might go to Bankrate CD rates, and see FDIC insured banks offering 2.80% APY for a one year CD, and the lender would have virtually zero counter-party risk. It is up to individual traders to price their own risk, but I would price in something more than a 2% discount for having to account for the risk of whoever I am dealing with running away with my money.

I give 2% on bitcoin risk free since I fully collaterize at all times. If we ever get close escrow buys bitcoins with my money and sends them to you. Banks give interest in usd. It's a difference. I am open to any offers but no crazy interest rates

I think I may have misunderstood your intentions, I understand now. You are wanting to short bitcoin via an OTC trade.

I am looking at interest rates for crypto lending on margin exchanges, and poloniex allows someone holding bitcoin to earn ~3.0%/year, but this is subject to change, and is not available to US residents.

Quote from: suchmoon on April 16, 2019, 01:13:27 PM

Quote from: petahasher on April 16, 2019, 12:31:34 PM

Your reason to not just buy Bitcoin with that USD?

Seems like that's exactly what the OP is trying to do, using the loan as a hedge:

1) BTC goes down, OP repays devalued bitcoins, walks away with the USD, the cost is only the tiny bit of interest.

or

2) BTC goes up, OP walks away with bitcoins, leaves the lender with the collateral USD.

I believe what you describe is true for anytime collateral is used for a loan.

I am trying to brainstorm solutions to this problem:
The lender [if applicable: through a trusted middleman] could hold both the stablecoin and bitcoin, and once the OP is ready for the loan to be repaid, the lender can settle with the applicable coins he is holding for the loan.

If the OP wants to hold the bitcoin, the lender can add a clause to the Note that automatically terminates the loan if the value of the owed bitcoin exceeds the value of the stablecoin for an agreed upon length of time, and no additional stablecoin is deposited to the lender, or lender's behalf if using a middleman.

The OP can solicit entering into a straddle option agreement with who he is doing business with. This will probably make the transaction more expensive for the OP.