@intrepid_user ppl confuse fractional reserve with undercollateralized
fractional reserve = fully backed, but only a part of backing is in "reserves" (cash that can be paid out to meet withdrawals immediately), the rest is in longer term instruments like loans or bonds
A truly open-sourced, composable, frictionless environment will be the death of capitalism.
BUT, is it possible to be truly "frictionless"?
If not, friction --> arbitrage --> premium in pricing
A thread on value accrual in Web3 to get the convo started🧵