What concerns me about this proposal is the information and incentive asymmetry.
Kryptonim has a much better view as to where utilization will be and have proposed a curve whereby the rate is a function of said utilization.
What is stopping Kryptonim from promising 85% utilization knowing it will be more like 25-50%? End result: they get a loan at sub-Treasury yields and lenders are hung out to dry. I would propose that instead of being priced on this curve, there is a minimum cost to this financing regardless of utilization. That should make this more palatable.
@Kryptonim do the lenders you are bringing understand this? Seems unnecessarily unfavorable.