Let me share something I've recently figured out.
When I first started trading bStocks, I was excited thinking I could finally buy US stocks on-chain.
NVIDIA, Tesla, just the thought got me pumped.
But after using it for a while, I realized I wasn't treating it like I would with a brokerage.
I wasn't keeping my eyes glued to the charts, analyzing earnings reports, or calculating valuations. Instead, what I was doing was:
Swapping some USDT for NVDAB and then throwing it into DeFi for yield farming.
Wait a minute.
Is there really any fundamental difference between this and what I used to do by swapping USDT for sUSDe to earn some interest?
/
Once I wrapped my head around this, I realized that bStocks isn't just a replacement for trading US stocks.
It's a way to make USDT more than just USDT.
In the past, you only had two options for your USDT: either let it sit and earn a 5%-10% yield or take a gamble on some memes.
Now there's a third option: swap for NVDAB, TSLAB, and other assets, giving your USDT some directional beta.
The ups and downs follow NVIDIA, while you can still use it as collateral on-chain.
You haven't left the blockchain, you haven't stepped out of the circle, and you haven't opened a brokerage account; you've just found a new liquidity model.
——
So, who is bStocks really competing against?
I believe it's not the brokerages, but rather USD1, sUSDe, and various stablecoin investment products.
Because they are all after the same pot of money.
Those USDT sitting on-chain with nowhere to go.
Stablecoin investments offer you certainty in yield, while bStocks gives you directional beta + composability.
Which one you choose depends on whether you want certainty or flexibility at the moment.
For me, during choppy markets, I earn yield, and when there's direction, I swap some USDT for bStocks and hold.
Switching between the two has almost zero cost.
This feeling is way more thrilling than just being able to buy US stocks.
//
Of course, I need to throw some cold water on this: you can treat bStocks as "better USDT," but don't mistake it for "I truly own NVIDIA."
These two things are separated by a layer of trust.
And once you put NVDAB into DeFi as collateral, there are risks like liquidation risk, oracle risk, and liquidity drain risk.
It's fun, but don't forget about risk management. My approach is to test the waters with a small position, not going all in, and being able to pull out anytime.
bStocks isn't revolutionary, but the idea that "USDT finally has a more imaginative place than just earning yield" is something worth pondering.
#bstocks #BNBCHAIN
When I first started trading bStocks, I was excited thinking I could finally buy US stocks on-chain.
NVIDIA, Tesla, just the thought got me pumped.
But after using it for a while, I realized I wasn't treating it like I would with a brokerage.
I wasn't keeping my eyes glued to the charts, analyzing earnings reports, or calculating valuations. Instead, what I was doing was:
Swapping some USDT for NVDAB and then throwing it into DeFi for yield farming.
Wait a minute.
Is there really any fundamental difference between this and what I used to do by swapping USDT for sUSDe to earn some interest?
/
Once I wrapped my head around this, I realized that bStocks isn't just a replacement for trading US stocks.
It's a way to make USDT more than just USDT.
In the past, you only had two options for your USDT: either let it sit and earn a 5%-10% yield or take a gamble on some memes.
Now there's a third option: swap for NVDAB, TSLAB, and other assets, giving your USDT some directional beta.
The ups and downs follow NVIDIA, while you can still use it as collateral on-chain.
You haven't left the blockchain, you haven't stepped out of the circle, and you haven't opened a brokerage account; you've just found a new liquidity model.
——
So, who is bStocks really competing against?
I believe it's not the brokerages, but rather USD1, sUSDe, and various stablecoin investment products.
Because they are all after the same pot of money.
Those USDT sitting on-chain with nowhere to go.
Stablecoin investments offer you certainty in yield, while bStocks gives you directional beta + composability.
Which one you choose depends on whether you want certainty or flexibility at the moment.
For me, during choppy markets, I earn yield, and when there's direction, I swap some USDT for bStocks and hold.
Switching between the two has almost zero cost.
This feeling is way more thrilling than just being able to buy US stocks.
//
Of course, I need to throw some cold water on this: you can treat bStocks as "better USDT," but don't mistake it for "I truly own NVIDIA."
These two things are separated by a layer of trust.
And once you put NVDAB into DeFi as collateral, there are risks like liquidation risk, oracle risk, and liquidity drain risk.
It's fun, but don't forget about risk management. My approach is to test the waters with a small position, not going all in, and being able to pull out anytime.
bStocks isn't revolutionary, but the idea that "USDT finally has a more imaginative place than just earning yield" is something worth pondering.
#bstocks #BNBCHAIN