This product offering is great for attention and early (vanity) volume growth, but it's incredibly naive and a mistake we see many companies make. Erebor is just the highest profile example lately.
There *is* a way to offer 1:1 UX to your users in a cost effective way. But it doesn't involve assuming an effective forex market trades at par. The way to figure it out is to flow a couple $ billion across this pair and optimize the hell out of those flows.
If this is something you want to offer, talk to @eco.
Erebor Bank attracted crypto clients this year with a pitch -- the bank would convert their Circle and Tether stablecoins to cash for free.
Sophisticated crypto trading firms quickly figured out a way to make an easy profit out of the offer -- at a cost to Erebor.
Story with @MichaelRoddan
theinformation.com/articles/… 1/
But I thought stablecoins were the problem?
I'm going to say this again: The biggest threat to community banking, is the big banks. It's incredibly rich that the bank lobby continues to play this both ways.
More thoughts below if interested🧵
I'm not quite as spicy as @0xMarcB this morning but getting there.
reuters.com/business/finance…
Finally, in spite of all the frustration above, I *want* to work with the banks on this technology, because this technology makes money work better for them and their customers.
Every startup needs the person who just sends it. Takes full advantage of the trust to go be 20% wrong. No ego, full charisma, going to keep taking swings.
There's getting $#!t done, and there's making things happen. Invaluable when someone can do both.
Think about Eco's routing+pricing engines like an LLM, reasoning across chains and markets in real-time. Then think about the combination of our routing SDK/MCP (👀) and our partners' offchain policy engine as the harness.
Together, these enable developers and institutional traders and money movers to navigate onchain markets like never before.
In this analogy, stablecoins are the tokens, but also the compute. More to come on this last part.
Common @eco FAQ: Is Eco a stablecoin clearinghouse?
Answer: No. We enable programmatic onchain routing in/out/thru stables, with JIT liquidity. Clearing is basically a netting algo. You could (and should) use Eco to power the onchain leg of a clearing flow, but that's only one use case for our platform.
gm. Within 2-3y someone will try to include right to advertise in new auto lease terms, and/or owners will be sold some sort of content subscription plan designed for their cars only.
k, back to stablecoins. and analog things otherwise.
