Zhu Su: Wildcat's high interest rate is determined by the market with the consent of both parties

BlockBeats News, March 12th, Zhu Su stated on social media that Wildcat's uncollateralized lending protocol looks totally fine, they are basically short-term commercial paper issued by market makers (MMs) and other entities, and the floating price is a great innovation. In fact, if this protocol existed in the previous cycle, Three Arrows Capital would have had a much easier time restructuring, as its credit could trade on the open market and be used to buy back debt.

In the long run, as long as there is enough time, the default rate of everything tends towards 100%. During this period, as long as borrowers and lenders are willing, the market will determine the interest rate. Similar agreements would have been very useful for Bitcoin miners in the previous cycle as well.

BlockBeats previously reported that crypto market maker Wintermute created the Wildcat V2 market, seeking around $75 million in public credit to support USDC/USDT (12% APR), WETH (4% APR), and cbBTC (3.75% APR).