when you're hodling, there's nothing that can liquidate you.
when you're using a defi protocol, you capture all the upside for the risk you're taking.
when you're using a cefi "bank", the bank keeps some of the spread when they're up, and goes insolvent when they're down. heads they win tails you lose.
gbtc is like a bond that eventually pays out as btc when regulatory approval comes.
steth is like a bond that eventually pays out as eth a few months post-merge.
but in the aftermath of the luna/ust crisis and general crypto bear, there was a flight to safety (gbtc is less liquid than btc, steth is less liquid than eth), causing the gbtc/btc and steth/eth spreads to widen instead of narrow, and 3ac was caught out of position.
tldr: they probably profited some from short btc but lost more on long gbtc.
i think what they're trying to say is that these firms just look like traditional trading firms, not like defi. opaque backroom billion dollar handshakes go wrong, contagion spreads, ltcm/2008 style.
main difference- there's no government bailout coming.
coinbase's nft marketplace has <0.01% of the marketshare. they launched without using their key advantage- custodial relationship with the customer. coinbase nft should have been a custodial marketplace. this is definitely on someone in product, though it's unclear whether it's on surojit.
when you're hodling, there's nothing that can liquidate you.
when you're using a defi protocol, you capture all the upside for the risk you're taking.
when you're using a cefi "bank", the bank keeps some of the spread when they're up, and goes insolvent when they're down. heads they win tails you lose.