Why? As a result of 1) PBs are rising as a significant participant and lender in crypto markets and2) The present lending requirements of PBs are tight, largely lending to low drawdown methods (like delta-neutral), and presents low systemic threat. However, 3), if anticipated returns of delta-neutral methods decline, then PBs might transfer out the danger curve when it comes to who they’re prepared to lend to and what providers they provide, which may brew systemic threat.
