Sam MacPherson from Phoenix Labs explains the wholesale credit model in terms any capital allocator understands.
Cost of capital: ~4.05% (borrow rate from Sky).
Deployment venues: DeFi lending, CeFi OTC (Anchorage Digital), CeDeFi prime brokerage (Spark Prime).
Revenue: net interest margin on everything above 4%.
Peak performance: $3B deployed, ~$80M/year.
"Any spread that we're able to generate within the entire ecosystem, Spark retains the earnings."