The Metaverse

[vimothy]

awesome then you can actually potentially function in the "metaverse" as a hedge fund. which is great! lets be honest, the main attraction of crypto is that it allows all of us access to the financial casino which previously was only accessible to the big investment banks

 

[vimothy]

and bc its "programatic" thanks to the magic of defi you can do so without risk

 

[Clinamenic]

Yeah that is the main attraction, since most crypto investors are utterly uninterested in the technical stuff.

 

[vimothy]

so you think it's purely about the technicals? haha come on

 

[Clinamenic]

awesome then you can actually potentially function in the "metaverse" as a hedge fund. which is great! lets be honest, the main attraction of crypto is that it allows all of us access to the financial casino which previously was only accessible to the big investment banks

The optimistic flipside to that pejorative take is that it significantly broadens inclusion in capital markets. But as that asset manager capitalism seminar mentioned, much of it reduces down to the gambling compulsion. Beyond that, you can make arguments about the efficient allocation of capital, across space and time, and whether or not that can be said to apply under such speculative conditions. I think it obviously doesn't fully apply under such speculative conditions, hence the term speculative.

 

[Clinamenic]

so you think it's purely about the technicals? haha come on

No, but I agree that the technicals aren't the main attraction, as most people don't seem to care at all about the technicals.

 

[vimothy]

and bc its "programatic" thanks to the magic of defi you can do so without risk

isnt this literally the selling point of defi?

 

[Clinamenic]

No, but I agree that the technicals aren't the main attraction, as most people don't seem to care at all about the technicals.

Or else are willing to just accept technical word salad without attempting to understand it.

 

[Clinamenic]

isnt this literally the selling point of defi?

Theres plenty of risk though. Smart contract risk (i.e. hacking), rugpull risk, temporary illiquidity, "impermanent loss" which I don't yet have an intuitive understanding of.

 

[vimothy]

No, but I agree that the technicals aren't the main attraction, as most people don't seem to care at all about the technicals.

most ppl do not give a fuck in either direction. its purely about whether lines goes up

 

[vimothy]

Theres plenty of risk though. Smart contract risk (i.e. hacking), rugpull risk, temporary illiquidity, "impermanent loss" which I don't yet have an intuitive understanding of.

yeah, well, that's exactly what I'm saying

 

[Clinamenic]

yeah, well, that's exactly what I'm saying

The main attraction of DeFi isn;t the ostensible lack of risk, its the outlandish APY. As you say, line goes up.

 

[vimothy]

this whole space, which is predicated on the illusion that you can escape the kind of behaviour that is endemic in the mainstream fin markets, it in fact completely dominated by it

 

[Clinamenic]

Thats also why crypto investors are so prone to panic selling and FOMO buying, not having any bearing regarding what the technical details are, and the prospects of these technical aspects being grounded in practical use cases.

 

[vimothy]

you cant escape it bc you cant escape ppl

 

[Clinamenic]

this whole space, which is predicated on the illusion that you can escape the kind of behaviour that is endemic in the mainstream fin markets, it in fact completely dominated by it

Yeah I'd say the idealism is largely misguided insofar as it seeks to evade certain aspects of human nature, especially if said nature is bolstered by existing, exorbitant wealth discrepancies. I.E. VC firms can buy out huge swathes of DAO governance.

 

[vimothy]

The main attraction of DeFi isn;t the ostensible lack of risk, its the outlandish APY. As you say, line goes up.

what does apy mean?

 

[Clinamenic]

But to frame it as an all-or-nothing impact I think is facile. Steps can be taken to expand access to these opportunities, so more people can choose to expose themselves to what they think is manageable risk. Crypto has already done this, despite the prevailing vices of finance seeping into this new paradigm.

 

[Clinamenic]

what does apy mean?

Annual percentage yield. As I understand it, its a nominal rate that can be compounded, and then once you account for compounding you have APR, annual percentage return.

In DeFi, you can come across some utterly insane APYs.

 

[vimothy]

well that is not surprising