Consequences of bitfinex and Poloniex's lending policy
Need people to check my logic on this one.
Firstly bfx announced their policy on lending in the hard fork. They will require borrowers to pay back both bcc and btu. While polo will only require paying back the bigger fork.
This means it is much riskier to lend on polo and therefore leaning fees will be a lot higher. So you can borrow from bfx and lend at polo for a profit.
So how do you do that, first to borrow from bfx you will need to short btcusd with some of your money and then with the rest buy btc on polo. This will mean btc will be devalued on bfx and overvalued on polo.
btc been overvalued on polo will lead to ethbtc pair becoming undervalued versus other ethbtc pairs and bfx ethusd pair.
It will likely be complicated further by the fact that the easiest way to buy btc on polo will be via the ethbtc pair which could cause a premium for eth outside polo.
By the same logic all alts (including steem) on polo may be undervalued.
Any other consequences from this? What do you think of my logic? Any better ways to profit from this?
"This means it is much riskier to lend on polo and therefore leaning fees will be a lot higher. So you can borrow from bfx and lend at polo for a profit"
ah of course. I still feel there must be some opportunity here
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