The Metaverse
Clinamenic
Binary & Tweed
Yeah much of it is caught up in illiquid assets, and thats before you consider market manipulation and outright rugpulls.
There have been cases where DeFi liquidity pools have just been drained entirely,
There have been cases where DeFi liquidity pools have just been drained entirely,
Clinamenic
Binary & Tweed
But here, you can actually audit the code yourself, if you are literate, and ascertain what kind of functions are being called. I'm not that literate yet, but I did get scammed for twenty bucks worth of ETH, and I have around two hundred locked up in a deposit that may be compromised.
Clinamenic
Binary & Tweed
And I was able to look at some of the technical details of the smart contract I interacted with, and I saw that it preserved the right for the contract to drain funds from the wallet that interacts with it.
Clinamenic
Binary & Tweed
No, I don't believe thats the case. There's a baby in the bathwater, but I will admit its some dirty ass water.
Clinamenic
Binary & Tweed
I've also had experience with DeFi where things run smoothly, and you can see them run smoothly on the blockchain explorer.
vimothy
yurp
Haha what? and normies should just expect this?
Clinamenic
Binary & Tweed
None. This would be considered smart contract risk, and its largely why normies don't belong in the wild west.
Clinamenic
Binary & Tweed
Thankfully, there are licensed, audited, centralized alternatives to DeFi within crypto, that still offer considerably better APY than traditional financial institutions.
Clinamenic
Binary & Tweed
Coinbase, Nexo, Celsius, Binance, KuCoin are examples of centralized, custodial exchanges, some of which offer lending and borrowing, others allowing staking.
Clinamenic
Binary & Tweed
If you think I'm uncritical about this, take a tour of the crypto subreddit. That said, being a believer does tend to predispose me to optimism.
Clinamenic
Binary & Tweed
A decent video from Bloomberg explaining some aspects of web3
Bloomberg - Are you a robot?
www.bloomberg.com
Clinamenic
Binary & Tweed
I'm glad you're enjoying the thread.
toko
Well-known member
Heres a quote, "Computational integrity is a property that is required for financial transactions on the Internet. Computational integrity means that the output of a certain computation is correct.
If I deposit money into my bank, my bank sends me a number that represents the new balance in my account. I assume that the number they have sent me is correct. The bank could be lying to me–maybe this bank is not actually trustworthy. But I use a bank with a good reputation. If the bank stole money from its users, it would quickly go out of business. Therefore, I feel safe by trusting a bank with my money, because the bank needs to maintain its reputation.The problem with reputation-based systems is that they are opaque. It’s not easy for us to audit the bank and prove the bank actually has the money that it claims to have. Most of the time, the reputation-based systems work fine. But occasionally, we have catastrophic events–think of the 2008 financial crisis, or the Bernie Madoff financial scandal. These circumstances would have been avoided if the financial institutions could have been continuously audited for their solvency.With blockchains and cryptocurrencies, we now have tools that allow us to maintain computational integrity without the opaque systems of reputation. We no longer have to trust a central authority–we can verify computational integrity with math."
Your right about some stuff:
yes.
yes. which is part of its value.
most ppl do not give a fuck in either direction. its purely about whether lines goes up
true.
but again i think your over generalizing based on transient market conditions. Eth went from 1400 to sub 100 dollars-- there was serious and i mean serious anxiety that the entire thing was a failed experiment. in the end however, there were both price-agnostic buyers, (buyers who buy for utility or ideology and not because number goes up), and builders/investors looking to make socially useful products and not make a quick buck.
nope. calling it a scam makes no sense to me. on what basis is it a "scam"
Attachments
Last edited:
toko
Well-known member
this is wrong. the market for the securities were opaque, and our reputation based rating agencies failed us. The opaqueness meant that we had no idea what kind of liabilities firms owed each other. but on defi, liabilites and risk are A) managed programmatically and B) publicly verifiable. Notice how computational integrity and a shared data layer are what allow these desirable properties.
I won't speak to crypto as a whole, and further this is not to say there are no systematic risks in defi. (Cross-chain assets pose a systematic risk, you can read about Vitalik's take here) but they are a function of the market underestimating the risk rather then the risk being fundamentally unknowable.