Subspace Capital Borrow Request

Loan Request

Subspace Capital is a quantitative-driven algorithmic market-making firm that provides liquidity across major cryptocurrency pairs. We are requesting a loan with the proceeds to be used to support our market-neutral liquidity-providing strategies. Summarized below are the proposed terms.

Amount: 1,000,000 TUSD

Term: 3 months

Interest Rate: 16.0%

Company Background

Subspace Capital was founded in 2018 by two partners. One co-founder has over a decade of experience working at investment banks structuring and pricing derivative products. The second co-founder brings experience as a professional actuary having spent their career building and developing risk pricing models. Together they have developed proprietary models which drive the company’s algorithmic trading strategies.

Subspace Capital’s primary trading strategy centers on market-neutral market-making. The company has established relationships with all major cryptocurrency exchanges and trade all the most liquid currency pairs.

The company has been running its trading strategies successfully since inception (three years ago). Over this time it has conducted extensive research on the global currency and digital asset market and has developed a substantial inventory of data, knowledge, tools, and experience which have enabled it to operated successfully throughout a wide range of market environments.

We look forward to building our relationship with the TrueFi community, and after this initial loan plan to ramp-up future financing to scale to the size of our operations.

I would suggest a provisional ‘no’ pending the borrower providing more Know Your Customer information.

At present, this borrow request does not provide a Subspace Capital website link, names of partners, and there are no search engine hits for this firm.

What is the AUM and how highly leveraged has the firm been in the past 3 months?

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The company has completed the full KYC process with trusttoken.

You can also find more information at the webpage, including the full names and backgrounds of the cofounders.

We look forward to moving forward.

I will also add AUM> $10 million, and leverage less than 10%.

This is not specific to Subspace, 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 subspace is onboarded on TrueFi app.
Would love to hear from others!

I am satisfied on the KYC front. However, 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.

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Thanks guys, this is helpful feedback and a good discussion.

We understand the current demand and utilization dynamics of the lending pool. Taking those into account, we have modified our borrow request to the suggested interest rate of 18%.

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TrueFi team, can you provide a link to the KYC information for stakers to make an informed decision regarding the loan request? Thank you!

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I appreciate the updated request to 18%. What will be the levels of leverage used over the term of this loan?