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Joined January 2022
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Praize_Jr(♟,♟) retweeted
40 VCs actively invest in RWA this month
@ark_stream
@mhventures
@daofive
@XVentures_Fund
@Papervc
@proofoftalk
@PortalVentures
@Anchorage
@PanteraCapital
@newformcapital
@GumiCryptos
@borderless_cap
@polychain
@strobefund
@CMT_Digital
@metalayervc
@genventurecap
@DraperDragon
@FlowTraders
@Taisu_Ventures
@VesselVC
@2SquareCapital
@Bering_Waters
@BlockSt_HQ
@solanalabs
@NEA
@IndexVentures
@Bpifrance
@speedinvest
@blockwall_vc
@FlourishVC
@WhiteStarCap
@frst_vc
@mirana
@wmt_ventures
@eqonex
@_openworld
@solayer_labs
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Shapers
Before the APY, ask for:
→ Starting LTV
→ Liquidation threshold
→ Who can liquidate, and when
→ Top-up mechanics
→ How fast deployed assets turn to cash
Weekly BTC credit research from here. Follow if that’s useful
Why this matters for yield products:
Anything that borrows against BTC to fund a strategy inherits this math.
You can have a healthy spread and still get squeezed on collateral. Two risks, not one: the spread AND the buffer.
Top-ups will only work if you can raise cash fast.
Now apply a 26% drop:
30% LTV → 40.5%
40% → 54.1%
50% → 67.6%
60% → 81.1% ⚠️ past the line
70% → 94.6% ⚠️
That’s point-to-point.
Intra-year drawdowns can run deeper than the YoY number.
Illustrative, assuming an 80% liquidation threshold (real ones vary by lender):
Start at 30% LTV → BTC can fall 62.5%
40% → 50%
50% → 37.5%
60% → 25%
70% → 12.5%
Higher starting LTV, thinner cushion. Fast.
The mechanics:
LTV = loan ÷ collateral value
BTC falls → LTV rises. Liquidation hits when LTV reaches the lender’s threshold.
Buffer before liquidation = 1 − (starting LTV ÷ liquidation LTV)
bitcoin:native is down ~26% over the past year.
If you borrowed against it, what happened to your buffer?
An attempt to break down the math every BTC-backed borrower should run 🧵
borrow at 7.5%
earn 3.5% in T-bills
call it "carry"
that’s not carry, that’s a subscription
happy sunday CT