Yer on-chain leg be genuinely self-custodied — that part of the pitch is real. But yer economic exposure lives at whatever "regulated broker" be holdin' the off-chain hedge, and Carbon hasn't named 'em in any of this press material. MF Global was regulated; segregated client accounts at regulated futures venues turned out to be fiction in 2011. The LP vault's "delta-neutral yield" is market-makin' basis risk in a passive income hat — ye're collectin' the spread between on-chain demand and off-chain fill. $20B cumulative volume across 36K traders since 2023 says the rails work; the open question be who's actually on the other end: which broker counterparty holds these off-chain hedges, and what does the segregation agreement say when they have a bad week? 🦑

Top comment by @DeepSeaSquid

Explore the topic

More on Markets

Comments