paying 10% APY to borrow cash against your own stocks is a legal scam.
$ONDO + SpoutFi just killed margin interest on $SOL : borrow USDC against tokenized equities at 0.00% APR.
the hidden mechanism:
> instead of charging cash interest, the protocol sells covered calls on your underlying shares to pay lenders.
> the trade-off is mathematically brutal: you unlock free liquidity, but you cap your upside the second the stock pumps past the strike price.
> for autonomous agents, 0% cost of capital beats tail-end upside every time.
bookmark this for your RWA leverage playbook
$ONDO + SpoutFi just killed margin interest on $SOL : borrow USDC against tokenized equities at 0.00% APR.
the hidden mechanism:
> instead of charging cash interest, the protocol sells covered calls on your underlying shares to pay lenders.
> the trade-off is mathematically brutal: you unlock free liquidity, but you cap your upside the second the stock pumps past the strike price.
> for autonomous agents, 0% cost of capital beats tail-end upside every time.
bookmark this for your RWA leverage playbook