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450: Bitcoin Money Market Funds with Theo Mogenet

Oct 1, 2023
TFTC Podcast

450: Bitcoin Money Market Funds with Theo Mogenet

450: Bitcoin Money Market Funds with Theo Mogenet

In this current macroeconomic environment the search for risk-adjusted yield has gone a bit haywire. Individuals and institutions alike are pulling their deposits from banks to pile into treasuries and money market funds in an attempt to lock in yield on their reserves as the Federal Reserve keeps interest rates elevated. However, these markets can come with risks. Mainly, that the US government can weaponize the monetary rails and the Fed can change monetary policy at a moment's notice. Bitcoin money market funds could provide a robust alternative to these markets due to the nature of the scarcity of bitcoin and the distributed network it runs on. Theo Mogenet joins the show to dive into the history of bitcoin perpetual swap strategies and how they have been leveraged by bitcoiners to lock in a stable USD value of bitcoin, how a perp swap strategy can allow bitcoiners to create a money market fund with consistently high yield, and how it can be done natively on bitcoin without trusted third parties.

Follow Theo on Twitter

Check out the research piece on Axiom








0:00 - Intro
7:00 - Théo’s background
11:06 - Explaining money market funds
16:46 - UK Gilt duration mismatch
22:32 - US bank failures
25:08 - Weaponization of monetary system
39:41 - How Bitcoin fixes this
49:26 - Bitcoin’s increasing demand
52:47 - Through the lens of monetary policy
55:28 - Perpetual markets
1:00:46 - DLCs for futures contracts
1:07:55 - Acquiring liquidity for DLCs
1:18:24 - Nascent companies
1:23:52 - Inciting hyperbitcoinization
1:29:12 - What drives further adoption?
1:40:47 - Théo’s upcoming writing



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