Borrowing NMR for avoid currency change risk

Some people can/would want to, others likely not so much. For the hedge fund/numerai to perform well in the long run you’d like as many people as possible to tinker with it (bad tinkerers lose money and exit the system, good ones stay increaisng fund performance).

Both currency risk as well as as well as having to do the loan yourself (figuring out which crypto that would be & doing the operations that come along with it) are barriers to entry.

The most user friendly approach would likely be to allow users to stake any crypto, and secure the network via numeraire, and have staking pay overall dividends of the fund to incentivise staking (if you’re more confident in numeraire as a whole, hold numeraire, if more in your own model, use whatever currency you’re comfortable with).

this would likely require a complete overhoal though…

3 Likes