Grapefruit Trading is a crypto proprietary trading desk and over-the-counter trader. We are excited about TrueFi, and we are interested in borrowing 1,000,000 TUSD for 30 days at a rate of 11.5%. If the loan is a success, we will likely make larger requests in the near future.
Grapefruit Trading was started in March 2018 by Mike Komaransky, an early crypto investor who previously founded Cumberland Mining. Grapefruit is a subsidiary of a larger Chicago Trading firm 4170 Trading. Grapefruit’s focus is trading a wide variety of cryptocurrencies with a specialty in trading derivatives.
Grapefruit has been an early adopter of DeFi applications and continues to spend a significant amount of time and resources participating in the ever-changing space. Although we will not disclose private information, we can share our public accomplishments:
We were the second Airswap OTC provider and were responsible for many of the first large trades on the platform in early 2019. Airswap built the technology for instant swap OTC trades to eliminate counterparty delivery risk.
Grapefruit was the first OTC desk to become a Wrapped Bitcoin merchant and has to date minted 15764.69 WBTC (~$300M) and burned 1694.5 WBTC (~$32M). Coindesk cited us in an article back in September for the surge in WBTC supply.
We completed the first-ever DAO OTC trade, in which the Yam treasury exchanged $250k of YFI’s yUSD token for DPI.
Grapefruit Trading LLC is registered with FinCEN as a money services business for our OTC trading.
Use of funds
At Grapefruit, we primarily put on delta-neutral trades, which means the borrowed funds will not be used to take directional exposure in any tokens (long or short). Funds are typically used in a range of spot, derivatives, and DeFi trades. Grapefruit participates in many DeFi protocols but will only allocate significant capital to those that have been thoroughly vetted and have a long history of success. As for exchange risk, we carefully considered which exchanges to store funds on. We also have internal risk limits for the exchanges we participate on to limit our risks to any one exchange.
We appreciate the community and TrueFi for reviewing this proposal. Please feel free to ask any questions, and we’ll do our best to answer them quickly and concisely.