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This is an opinion editorial by Max Keidun, the CEO of peer-to-peer bitcoin exchange Hodl Hodl.

The bitcoin lending space has suffered from several major issues in recent months and years, from the fallout of the Terra/Luna crash, impacting Celsius and BlockFi, and now FTX as well, to liquidity crunches given the sustained price drawdown, varying accusations of market manipulation and more.

All of these have led to significant losses, bankruptcies and a complete reshaping of the lending market. Many users have lost faith in bitcoin-based lending products and the market appears to be at its historical bottom, both in terms of volumes and public confidence.

As usual, the mainstream media blamed these crises on Bitcoin itself. But is any of this Bitcoin’s fault? Does it make Bitcoin any less attractive? Does it even mean that we shouldn’t consider bitcoin as lending collateral? No!Bitcoin Is Super Collateral, It’s The Lenders Who Have Failed

While Bitcoin's code is law, custodial lending platforms are trusted third parties, owned and managed by private entities. Trusted third parties are security holes. This was true before Bitcoin, and it is still true today.

Furthermore, most bitcoin lending platforms are poorly conceived, poorly developed and poorly managed. This doesn’t necessarily imply bad code. The code can be well written, properly audited and verifiably secure, but there may still be poor incentives that emerge from the design of the lending platforms. If the focus is to treat bitcoin as if it were a yielding asset, we are likely in for trouble.

The longer the “bitcoin lending” industry goes on, the clearer it becomes that most involved do not really understand how yield is generated. And as the saying goes, if you don’t know where the yield comes from, then you are the yield. What it really means is that your bitcoin is being used as the principal for risky investments, and it is likely only a matter of time before the house of cards starts to collapse.

I believe that the proper focus for integrating bitcoin into intermediated lending is to appreciate how valuable and unique bitcoin is, and to treat it as something to be borrowed against: to understand that bitcoin is super collateral. But what makes it so unique?

We can identify twelve characteristics that make it so:Bitcoin Is Liquid

Bitcoin is an extremely liquid asset. It is traded 24/7, with no weekend breaks and no banking holidays. Massive liquidity pools across a variety of fiat currencies are available globally. For lenders, this means that if you want to convert your collateral into fiat, you can do it instantly — either because the borrower has been liquidated or because the loan was repaid from the collateral.

This also allows for the hedging of risks. Bitcoin may be the only kind of loan collateral which can be instantly and dynamically hedged: a serious competitive advantage.Bitcoin Is Programmable

Bitcoin enables the creation of programmable lending products and ownership mechanisms. Among other benefits, this feature allows us to solve the problem of trusted third parties by building non-custodial lending mechanisms and storage systems. For example, we can distribute collateral claims or create conditional logic for redemption that will be automatically executed by the Bitcoin network, not the whims of a centralized financial institution.Bitcoin Is Scarce

There will only be 21 million bitcoin.Your collateral is getting more valuable over time, which means there is less incentive for you to sell, and likely more lenders who are willing to accept it. Bitcoin Is Flexibly Transparent

Bitcoin allows us to enable selective transparency of your assets when useful, but also allows complete anonymity when desired. In a lending scenario, for example, you can easily prove to a lender that you own and control the collateral under consideration.Bitcoin Is Sovereign

Bitcoin is yours. You have keys to your bitcoin just like you have keys to your house and your car. Bitcoin is your personal property. If you use a house or a car as collateral, you won't own it — your lender would. With bitcoin, you can still conditionally own it during your lending agreement. In fact, with the right tools, you can not only use but continue to use this collateral during the period of the lending agreement.Bitcoin Is Secure

Bitcoin is protected cryptographically, economically and socially. It is sensible to think of Bitcoin's lowest-level network security expanding to the set of tools built on top of it. For example, you can distribute ownership of your collateral between multiple independent parties, use offline wallets and utilize many more security methods.Bitcoin Is Market Driven

Bitcoin is the essence of a market-driven asset. The price of bitcoin reflects the market almost instantly, and it's not determined by one or several individuals. It is extremely difficult to manipulate the price of bitcoin. Bitcoin costs almost the same in fiat in any part of the world and is determined by a global market. Bitcoin Is A Real-Time Asset

Not only can we track the price of bitcoin collateral in real time, but Bitcoin's blockchain allows you to track your collateral address in real time also. Any price fluctuation can be reacted to appropriately. As mentioned, there are no weekends or holidays, and the market is always open to everyone, so nobody will close the market on a Friday and open on a Monday with different prices.Bitcoin Is Objective

Bitcoin is honest. Bitcoin in Miami costs the same amount of fiat as it does in Lugano or Riga. Bitcoin doesn't care whether you like it or not. The price of bitcoin cannot be determined by your personal views or your forecasting capabilities. To borrow against bitcoin, you only need to have bitcoin. Your credit history, social score or anything else is irrelevant to the lender as long as you have the collateral to borrow against.

Take real estate, for example. The same amount of money can buy you different properties in different countries with the same levels of economic and social development. What makes the difference then? Why can you buy a mansion on the coast of the Mediterranean in Spain or Italy and, for the same amount of money, you won’t be able to afford a proper house in the Bay Area in the U.S.?

It’s due to humans' irrational valuation capabilities. Because real estate valuation is primarily based on human factors, banks evaluate your property as either too expensive or too cheap, depending on market conditions and their plans.

Or take stocks, for example. Your stocks in a certain company can have good underlying conditions and great potential growth opportunities, but suddenly the CEO of this company can tweet some stupid thing, and you are losing money or getting liquidated. Meanwhile, Bitcoin is fair.Bitcoin Is Global

Bitcoin is globally accessible and globally distributed. For lending, this means that you can borrow remotely from anyone in the world, and you can lend money using bitcoin as collateral to anyone in the world. Bitcoin is neither limited to, nor exclusively exposed to, specific local markets.Bitcoin Is Digital

In a digital age, with digital commerce, we need digital collateral. Bitcoin is already online. It's here, on your machine, your phone, your cold wallet. Bitcoin allows you to borrow remotely and instantly. There is no need to digitize bitcoin as you need to do with real estate, land, cars or any other assets. It's already digital. Bitcoin Is Decentralized

There is no single point of failure in Bitcoin. Bitcoin has been attacked multiple times, and yet it is growing and expanding globally. No committee or person is responsible for Bitcoin. Having decentralized collateral significantly decreases your dependence on single events and failures of companies or people. You are protected by a distributed network. Will Lending Ever Match Bitcoin’s Potential?

Powerful collateral requires powerful tools. Is it possible to build lending tools that will match bitcoins' value? In order to do so, we all need to take a step back and check Bitcoin's white paper.

After reading Bitcoin’s white paper, you will understand that in order to build a successful lending product (in fact, any type of Bitcoin product!), you need to meet three main criteria. If your product has all three, congrats you have passed the test. Let's call it “The Satoshi Test.”Your service should be non-custodial. Remember: not your keys, not your coins. When using custodial lending platforms, you are exposed to the risk of losing your collateral completely. Because, as soon as bitcoin hit platform wallets, they are no longer yours. This is exactly what happened to customers of the many lending and trading platforms that have failed in 2022.Bitcoin is a peer-to-peer, electronic cash system. Once again: peer to peer. Instead of acting like a middleman, you need to provide technical tools for individuals or businesses to operate with each other. Or you can be a business that will allow customers to directly interact with your platform. A good example is a platform that allows customers to buy bitcoin directly into their own cold storage. Your platform should be Bitcoin only, meaning that the only collateral you should work with should be bitcoin. Shitcoins are risky, and shitcoins' code is a ticking time bomb. By integrating many blockchains into your product, you are exposing the most valuable to the most vulnerable.

There is an extra criteria that could be met: anonymity. If you are building non-custodial, Bitcoin-only, peer-to-peer products, this can and will allow you to offer anonymity and better privacy for your customers because security is not full without anonymity and the data of your customers should be protected, as well as their funds.

A good way to pass The Satoshi Test is to utilize multisig. Multisig is a simple and secure yet powerful tool. It allows you to offer peer-to-peer interactions to users, leverage non-custodial escrows and use only Bitcoin. It also allows you to offer better privacy for your users.

Take, for example, a multisig setup with three keys where the consensus mechanism is reached by entering at least two keys. This is called “two-out-of-three Bitcoin multisig.” In that type of setup, you — as a technical tool provider — can become one of the key holders, but you won’t have full control over customer funds (because you only have one key!), thus ensuring that these funds won’t be moved and rehypothecated. For example, the lender will have one key, the borrower will have another one, and the provider will have the third key. This kind of setup will allow users to verify that funds are only used by them, and that all parties must act according to rules in order to reach consensus, and that no single party can act in a dubious and shady way.

In fact, there are already powerful platforms that use Bitcoin multisig and offer peer-to-peer interactions. These platforms can provide lenders and borrowers from all over the world with easy two-out-of-three multisig setups, where each side (including the platform itself) has one key. The multisig is created on Bitcoin’s public blockchain, meaning that you can check your collateral at any time through any block explorer. And the best part is that no funds can be rehypothecated because the platform itself only has one key that ensures that every involved counterparty is acting in a good and professional way. Proper Lending Platforms Might Be Useful For HODLers

Although the lending market at the moment is experiencing turbulence and contagion effects, it is a good time to educate yourself about proper lending platforms that might be useful for any true HODLer in the future. As soon as we enter the next bull cycle, there will be less incentive to sell bitcoin and more interest in holding it for the long term and borrowing against it. Be prepared, because bear markets don’t last forever. HODL and learn!

This is a guest post by Max Keidun. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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Olney: Yankees must replace Gerrit Cole — but they’ll probably have to wait

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Olney: Yankees must replace Gerrit Cole -- but they'll probably have to wait

Gerrit Cole‘s season is over, now that he is headed for Tommy John surgery, and the New York Yankees will have to find a way to replicate the production of a Cy Young Award-winning pitcher, someone who is likely to one day make a speech on induction day in Cooperstown.

But this is not a case of a team being blindsided by an injury. Past injuries are the most predictive indicators for future injuries, and after Cole missed nearly the first three months of last season with nerve inflammation in his right elbow, the Yankees knew the chances of losing him were heightened. Their handling of his contract situation last fall was a strong indicator of the uncertainty around Cole.

The pitcher and his agent, Scott Boras, opted out of the last four years of his contract, while asking that the Yankees exercise a $36 million option for the 2029 season, effectively adding a fifth year to his four-year, $144 million deal. Owner Hal Steinbrenner and GM Brian Cashman declined to do so, firmly holding the line, and days later, Cole returned to the Yankees without any augmentation of his contract. While the Yankees hoped Cole’s elbow would remain functional, as Masahiro Tanaka’s elbow did following a diagnosis of a partially torn ligament in 2014, they weren’t willing to bet another $36 million on it.

But that doesn’t help them very much right now, when they have lost two starting pitchers to significant arm injuries: Before Cole went down, Luis Gil — the American League Rookie of the Year last season — suffered a lat strain this spring that will keep him sidelined for much of the 2025 season. Max Fried, signed to a $218 million contract over the winter to improve a good rotation, will now be the de facto ace, in front of right-handers Clarke Schmidt and left-hander Carlos Rodon. A month ago, there was a lot of speculation about whether Marcus Stroman would be traded, given his standing as the sixth starter behind a five-man rotation, and now Stroman is needed as the No. 4 starter.

Cashman’s habit is to be patient — to weigh internal solutions before diving into another free agent signing or trade. When Cole was sidelined last spring, the Yankees thought Will Warren might step into his spot in the rotation, and instead, Gil surprisingly emerged to fill in for Cole and was one of the league’s best starting pitchers in the first half.

This year, Warren is having a very good spring, having allowed just two hits and a run in eight innings of work, with two walks and 11 strikeouts. Warren, an eighth-round pick out of Southeast Louisiana in 2021, is the front-runner to move into the Yankees’ rotation.

Just as the Yankees continue to weigh market options for hitting help while Giancarlo Stanton is attempting to work his way back from elbow trouble, they will consider free agent possibilities such as veteran right-hander Kyle Gibson. The Yankees paid for insurance on Cole’s contract, and so they will recoup some portion of the salary they owe him; typically, that rate is about 75%. His contract still counts against their competitive balance tax total, but the insurance money will significantly offset the luxury tax they will have to pay for the addition of any replacement: The Yankees are taxed dollar for dollar, 100%, for any additional player salaries they take on. A new $5 million player costs the Yankees $10 million.

Eventually, their best alternatives, if needed, could be through the trade market, and maybe that turns out to be the Miami MarlinsSandy Alcantara, the 2022 NL Cy Young Award winner who is back after an elbow reconstruction. Under the terms of a deal he signed with the Marlins early in his career, Alcantara is making $17.3 million this year and $17.3 million next season, and there is a $21 million option in his deal for 2027.

The Marlins are not expected to contend this year and have been in a cost-cutting mode since Peter Bendix took over the team’s baseball operations after the 2023 season. Last year, the Marlins demonstrated a willingness to deal very early in the season, when they swapped batting champion Luis Arraez to the San Diego Padres in the first week of May.

But the price of a trade in April or May is usually set by the team dealing away a star, and the Yankees would have to pay a big price in prospects in the spring after a rough year for their farm system, which is generally regarded as thin by other teams and ranked No. 21 in Kiley McDaniel’s preseason system rankings. Additionally, the Yankees would presumably compete against other teams if and when the Marlins look to trade Alcantara, leaving them at the same disadvantage they faced when trying to pry Garrett Crochet away from the Chicago White Sox — before Chicago dealt him to the Boston Red Sox.

Over the course of the summer, Gil could return from the injured list, and other pitchers could emerge on the trade market as some teams drift out of contention. If the Toronto Blue Jays struggle in the first half, they could be a key source for all kinds of needs, including starting pitchers. Jose Berrios, Kevin Gausman, Chris Bassitt and Max Scherzer might all draw interest if Toronto ever looks to rebuild and, in the Yankees’ case, is willing to deal within the division.

One or more National League West teams could end up feeding the trade market. The Padres enter this season with high expectations after nearly knocking out the Los Angeles Dodgers last summer, but if San Diego drifts behind in the playoff race, it holds two of the best impending free agents, Dylan Cease and former Yankee Michael King. Similarly, the San Francisco Giants have veteran Robbie Ray, who is under contract for $25 million this year and next, and the Arizona DiamondbacksZac Gallen will become eligible for free agency in the fall.

Likewise, in the AL West, the Mariners have so far clung to their starting pitchers, like Luis Castillo, but that could change if Seattle sinks in the standings. The Astros demonstrated their willingness to be aggressive with players nearing free agency with their trade of outfielder Kyle Tucker, and if Houston hovers around .500, it could flip Framber Valdez into the market — with his years of postseason experience attractive to contenders.

The pitching market could be flush with options in a few months. And the Yankees might wait until then to make a move to cover for Cole’s absence.

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Yankees ace Cole will have Tommy John surgery

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Yankees ace Cole will have Tommy John surgery

New York Yankees right-hander Gerrit Cole will undergo Tommy John surgery, the team announced Monday, ending his 2025 season before it began and leaving the club staggering from another blow as it prepares to defend its American League pennant.

The decision to have the surgery, which will sideline Cole for the 2025 season and at least part of the 2026 season, was made after seeking a second opinion from Dr. Neal ElAttrache on Monday. Cole will undergo the procedure Tuesday at the Cedars-Sinai Kerlan-Jobe Institute in Los Angeles. In a statement, the club said that “further updates will occur post surgery.”

Cole started two games this spring, giving up seven runs across six innings. On Thursday, he gave up six runs on five hits, including two home runs, over 2⅔ innings to the Minnesota Twins. He said he felt an “alarming” amount of pain that night into Friday morning, prompting him to notify the team and undergo imaging tests, which revealed a torn ulnar collateral ligament.

Cole, 34, went through the same series of stressful events a year ago: Elbow pain in mid-March, tests and opinions from doctors. But the result was different. Cole was diagnosed with nerve irritation and edema and, instead of surgery, he rested and rehabbed. He made his season debut on June 19 and pitched through the World Series without a setback.

In a statement he posted on Instagram later Monday, Cole said the surgery was a “necessary next step for my career,” adding that he has “a lot left to give, and I’m fully committed to the work ahead. I’ll attack my rehab every day and support the 2025 Yankees each step of the way. I love this game, I love competing, and I can’t wait to be back on the mound — stronger than ever.”

The ace logged 124 innings over 22 starts between the regular season and playoffs, tossing at least six innings in three of his five postseason outings. He then opted to alter his offseason throwing program by starting it earlier to continue his positive momentum. He said he was “in a really good spot” compared to other years at the start of camp.

But less than a month later, his season has been declared over.

Cole’s injury is the second major blow to the Yankees’ starting rotation this spring after Luis Gil, the reigning AL Rookie of the Year, sustained a lat strain that was expected to sideline him for at least three months.

Without the two right-handers, Max Fried, Carlos Rodon and Clarke Schmidt will top the Yankees’ starting rotation. Marcus Stroman, who was notably not expected to make the Opening Day rotation, is projected to slide into the No. 4 spot with Will Warren, a rookie who made his debut last season, and Carlos Carrasco, a soon-to-be-38-year-old veteran in camp as a non-roster invite, as the leading internal candidates to round out the quintet.

Other options in camp include right-hander Allan Winans, who has eight career starts on his résumé, and left-hander Brent Headrick, a starter in the minors who has never started a game in the majors.

The Yankees could also opt to sign a free agent — veterans Kyle Gibson and Lance Lynn are among those available — or swing a trade for an established starter.

Cole, a six-time All-Star, won the 2023 AL Cy Young Award and was the runner-up two other seasons. He has tallied at least 200 innings in six of his 10 full seasons (not including last year and the COVID-shortened 2020 season). He is as close to an old-school frontline workhorse in his prime that exists in baseball. It’s why the Yankees chose to sign Cole, a lifelong Yankees fan, to a nine-year, $324 million deal with a no-trade clause in December 2019 — the largest contract given to a pitcher at the time.

The agreement included a player opt-out after last season that the Yankees could’ve voided by attaching another year and $36 million to the four years and $144 million remaining on his contract. Cole exercised the opt out, but he never became a free agent and didn’t receive the extra year. Instead, the two sides agreed to continue as if Cole didn’t opt out two days later, keeping him under contract through the 2028 season at $36 million per year.

The Yankees have insurance on Cole’s contract, which will allow them to recoup some money for the time he’s out.

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Source: Dodgers, Roberts agree on 4-year deal

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Source: Dodgers, Roberts agree on 4-year deal

GLENDALE, Ariz. — Dave Roberts and the Los Angeles Dodgers are in agreement on a four-year extension that will set a record for average annual value on a manager’s contract, a source told ESPN on Monday.

The new deal, which runs from 2026 to 2029, will pay Roberts $32.4 million, carrying an $8.1 million average annual value that will narrowly edge out the yearly rate on Craig Counsell’s five-year, $40 million contract with the Chicago Cubs. Roberts, 52, will manage the 2025 season under his current contract, which was entering its final year.

A new deal was considered a foregone conclusion after the Dodgers secured their second championship in five years last fall. Serious negotiations began sometime around February; significant progress was made last week; and an announcement could come before the Dodgers fly to Japan to begin their season March 18. The 2025 season will mark Roberts’ 10th with the Dodgers.

“I can’t talk so much about it, but I do think that there’s finally some closure,” Roberts said after Monday’s Cactus League game. “I’m excited. Obviously this is the place I want to be. I’m sure I’ll go into it more. Hopefully there’s an announcement coming soon; I’m waiting. But this is the place I’ve always wanted to be. I just love what we’re doing.”

A cult hero in Boston for the stolen base that helped trigger an unprecedented comeback in the 2004 American League Championship Series, Roberts carved out a 10-year career as a major league outfielder, then spent five years on the San Diego Padres‘ coaching staff. The Dodgers hired Roberts to replace Don Mattingly in November 2015, making him the franchise’s first minority manager.

Since then, Roberts has guided the Dodgers to four National League pennants, eight division titles and a .627 regular-season winning percentage, the highest for someone who has managed at least 250 games. From 2016 to 2024, the Dodgers won 907 regular-season and postseason games. Only the Houston Astros (862) and the New York Yankees (807) even surpassed 800.

The Dodgers won at least 100 regular-season games in five of six full seasons from 2017 to 2023 and finished the 60-game 2020 campaign with a .717 winning percentage. The only year the Dodgers have not won the NL West under Roberts, in 2021, they finished with 106 victories — fewer by one than a San Francisco Giants team they later eliminated in the playoffs. And yet Roberts has only one Manager of the Year Award to his name, a sign of the harsh realities of his job.

For years, the Dodgers’ triumphs have been widely credited to an ownership group with deep pockets and a baseball operations department that is among the most astute in the industry. Roberts, meanwhile, had been left to shoulder the blame for repeated postseason disappointments. That was never more true than in 2019, when another 106-win Dodgers team lost in the NL Division Series to the Washington Nationals after Roberts rode Clayton Kershaw a little too long in a decisive Game 5.

But Roberts went on to manage the Dodgers through an unorthodox 2020 postseason that was staged in a bubble and did not include any days off within series, claiming the franchise’s first title in 32 years and buying himself more time. More October disappointment followed thereafter. The Dodgers were outlasted by the Atlanta Braves in the NLCS in 2021, then were defeated by inferior division rivals in the NLDS in 2022 and 2023, first the Padres and then the Arizona Diamondbacks.

A similar fate seemed to await the Dodgers in 2024. They found themselves a game away from elimination by the Padres in the NLDS, having to win in San Diego to keep their season afloat. A third consecutive early exit, immediately following a first-round bye, would have probably cost Roberts his job. But he managed through a bullpen game in Game 4, then rode more dominant pitching in Game 5 to advance. The Dodgers then breezed past the New York Mets and Yankees to secure their first full-season championship since 1988.

The 2024 season ultimately highlighted Roberts’ best traits. His even-keel demeanor helped the team navigate the betting scandal surrounding Shohei Ohtani‘s then-interpreter, Ippei Mizuhara, early in the year. His trademark positivity kept the team’s spirits high when injuries plagued star players such as Mookie Betts, Max Muncy, Yoshinobu Yamamoto and Tyler Glasnow throughout the summer. And in the fall, while dealing with an extremely compromised starting rotation, Roberts seemed to press all the right buttons.

He navigated through bullpen games on four occasions, most notably to save the season against the Padres and to win the pennant against the Mets. And in Game 5 of the World Series, when starting pitcher Jack Flaherty didn’t pitch past the second inning, Roberts rode a beleaguered group of relief pitchers while the Dodgers made a spirited comeback and entrusted another starter, Walker Buehler, to record the final three outs.

With the win, Roberts put himself alongside Walter Alston and Tommy Lasorda as the only Dodgers managers to win multiple rings. It more than likely secured his place in the Hall of Fame. But what he was most proud of was that the trust he had always extended to his players had been reciprocated.

“That’s everything,” Roberts told ESPN shortly after securing the championship. “I believe in them. And this is the first team that I felt really like the trust went both ways. And that regardless of whatever decision I made, they were going to support me 100 percent.”

The New York Post was first to report Roberts’ extension.

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