The listed below is an excerpt from a current edition of Bitcoin Magazine Pro, Bitcoin Magazines premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis directly to your inbox, subscribe now.Voyagers Loan Book ExposureEarly on June 22, 2022, Voyager Digital, a crypto business which made it possible for users to deposit on their platform for yield, revealed it took large losses from loans extended to Three Arrows Capital. One of the largest factors that the impacts of the “contagion” have been so strong has been due to this unsecured leverage.Collateralized loaning is one thing: You post over collateralized bitcoin in order to borrow dollars, and if the exchange rate of BTC/USD falls the borrower requires to either: Post more collateral Pay down the dollar-denominated financial obligation Liquidate the bitcoin to pay down the debtUnsecured financing, and the systemic risks it unveils throughout an industry, is the really thing that bitcoin was created to stop.
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