re: Voyager - VYGVF Due Diligence

Much better morning than the last few days

Voyager announced they will be repurchasing 5% of their shares for cancellation on May 30, 2022. This should scare the shorts off this stock for the next year which is very good.

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What's the drawback here?

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Is it FDIC insured?

I really struggle to see how they’re paying 9% on USDC unless it’s just a loss leader. rocket tried to explain it quickly but if someone wants to go into more detail, I’d be interested.

Anyone have a reward code for Voyager?

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I'll try to find an article but if you have access to the btc derivatives market you long spot, short futures, and collect the spread

this is 15-25% yield just by being market neutral

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And you can do this with USDC? I guess I struggle to see why they’d pay that rate on USDC but not BTC if BTC futures are what’s driving the return for them.

Yes, but you need to own the asset to effectively buy spot and sell the contract during contango. So most really can’t do that on CME, because those settle cash, and you’d need cash equivalent of 5 BTC or margin. But you most certainly can on LedgerX. LedgerX is also CFTC and counter party risk is the clearing house.

I use both, and no margin. All on BTC gains. But mostly LedgerX because I don’t want that kind of cash sitting around in a CME trading account.

I’m waiting on better swap options. That’s not really practical yet for what I want to do. There are simple swaps on LedgerX.

The other thing is it is fairly difficult to straddle or strangle. So a hobbled together variance swap. But you can get it done.

Anyway, the opportunity to hedge is still expensive, but if you have gains like some of us do, well worth it. Also the opportunity for arbitrage is getting better. Hedging is just expensive due to volatility. Arbitrage is very profitable, and the situation you describe is virtually risk free if you own the asset and know what you’re doing.

It’s like back in the day when guys like me had an almost exclusive with dark pools for equity. The crypto world opens this up for retail guys who put some time into it.

All this said, I’m largely buy and hold, and my trading around the asset is all CFTC, none of the alts and lesser known exchanges. Not that there isn’t opportunity in the other stuff, but there is only so much you can do.

LedgerX allowed me to review all of their insurance coverages, and I’m pretty comfortable there. I can’t remember if it is KYC, I think maybe it is due to CFTC.

Did you try to search for your bank? If so I’m not sure. The app is still new so I would bet they will be adding a lot more soon.

I wish they would accept American Express, Visa, or Mastercard to deposit money.

6.25% but you have to maintain a 0.01 monthly average.