Ovex Borrow Request

Hi TrueFi Stakers

We are Ovex, a South African cryptocurrency exchange. We are requesting a loan of 3 million TUSD for 30 days and we are willing to pay 15% p/a.

About us

Ovex specializes in OTC trading and arbitrage. We operate the largest OTC desk in South Africa, delivering prime brokerage services to institutions and high net-worth individuals across Africa amid rising demand for crypto access in the region.

Ovex has partnered with several leading cryptocurrency companies and firms, including our investors Invictus Capital and Alameda Research/FTX.

On average we have a daily trading volume of $15 million. We are a strong supporter of TUSD, minting more than $22 million in the last 30 days (we often mint well over that amount in a given month).

We are happy to field questions on any of the social channels below:

Telegram

Twitter

Loan request and use of funds

The funds will be used for market making on the Ovex OTC desk. Trading strategies are risk-neutral, including pairs arbitrage between BTC/ZAR and USD/BTC (as the largest OTC desk in South Africa we have a unique advantage in this area), futures arbitrage and margin lending.

This is not specific to Ovex, but at this point in time, loan utilization is 91%
It would be risky to approve any loan for that matter.
I just don’t want to vote no after ovex is onboarded on TrueFi app.
Would love to hear from others!

Given the recent demand at 16.5%, I don’t think any rate lower than that is competitive. And given the present over-utilization of the pool (we’re targeting 30% liquid so that people can exit easily, yet we are only 9% liquid), I don’t even want to approve 16.5’s anymore - I think 18% is where I’d be happy continuing to vote yes.

Also going forward, $3m is a bit more than I’d like to approve for first-time borrowers on the platform (especially while overutilized).

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Agree with points above.

Can you tell us how much Invictus and Alameda invested? If they have done vetting, that could be very helpful to us,

This is a fair point. In light of this and the loan utilisation having moved down, we will reduce our initial loan request to 2 million to ensure liquidity in the pool remains at suitable levels.

Agreed. We are going to reduce the loan request to 2 million - fortunately, the utilisation rate is now lower than it was previously. Also, it appears that rates are lower at present. Because of that, we believe 15% p/a is a good rate given current market conditions.

Thank you for the great question. These figures are currently not public but we can say that Alameda invested at a valuation of over 55 million and since then our revenue has more than doubled.

OVEX has done extensive business with TrustToken over the past 3 years, amounting to considerably more than the revised 2 million requested here - we are sure that the TrustToken team can attest to this.

Folkvang, Poloneix & Subspace capital have recently made much more competitive offers for our funds. Clearly there is a demand for even 18%+. We have no problem meeting our target pool utilization. Given market conditions, 15% seems pretty low, especially with the multiple current offers on the table. I would respectfully vote no given current conditions.

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