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MakerDAO gets stress tested as ETH price plummets

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Re: MakerDAO gets stress tested as ETH price plummets

#81

Post by rolltiide »

perl4ever wrote: post #63
rolltiide wrote: post #14

Earlier quoted context omitted.

I dont think it was an unforeseen use. People that execute these smart contract dark patterns knew for a long time and didnt steer public discussions that way. The very foreseen problem was that people dont show up to governance decision in crypto. Yes you can use a blockchain for voting but nobody shows up. The real problem is that there are no alert protocols built into wallets and client side defi apps. Now people…

"Everyone with dollar signs now is going to research that and bid $1 until the order book is populated and it never happens again." Not familiar with this, but your comments sound like "we have a proof of concept that this issue could be solved, therefore it is solved".

> but your comments sound like "we have a proof of concept that this issue could be solved, therefore it is solved".

What? No. This is about more people showing up to a foreclosure auction because they heard about the guy that bid $0 by being the only person at the foreclosure auction, and flipped a property for $4mm.

And then you have an actual market.

The auction house itself doesn't need to be patched. The auction process doesn't need to be patched. If the auction house has sympathy for the people that got foreclosed on then they can do whatever they want to compensate them from their own pocket, they can automatically do that in case a reserve bid isn't met, but the fact that the auction occurred in a timely fashion is proper behavior.

Re: MakerDAO gets stress tested as ETH price plummets

#82

Post by nootropicat »

perl4ever wrote: post #69
nootropicat wrote: post #47

Earlier quoted context omitted.

>I seem to recall the proposed staking minimum being around $200,000... No, it's 32 eth, which is a bit over $4k. > https://download.wpsoftware.net/bitcoin/pos.pdf Stake grinding is an obsolete attack (solved by randao, in the future strengthened with VDF asics). The second argument that weak subjectivity is somehow unsafe is at odds with reality: it assumes some far away hermit that runs an old node after 10 years o…

"mining would became fully regulated with enforced kyc on every transaction" Aren't they prosecuting bitcoin mixers as money laundering right now?

I'm not aware of that.

Re: MakerDAO gets stress tested as ETH price plummets

#83

Post by nootropicat »

polyomino wrote: post #55
nootropicat wrote: post #41

Earlier quoted context omitted.

>So now it just needs a little help from miners to actively exclude all other bidders. A mining cartel that censors transactions is indeed a real risk. Fortunately, ethereum is switching to PoS where even an average person with a smartphone could realistically generate several blocks a day, as opposed to multiple megawatt (or even giga) mining farms, so it's only a temporary issue. >My understanding is that in this c…

You don't need a mining cartel, infura runs all the working nodes.

I have my own node.

Re: MakerDAO gets stress tested as ETH price plummets

#84

Post by perl4ever »

nootropicat wrote: post #82
perl4ever wrote: post #69

Earlier quoted context omitted.

"mining would became fully regulated with enforced kyc on every transaction" Aren't they prosecuting bitcoin mixers as money laundering right now?

I'm not aware of that.

Here you go:

"An Ohio man was arrested for his operation of Helix, a Darknet-based cryptocurrency laundering service.

In the three-count indictment unsealed Feb. 11 in the District of Columbia, Larry Harmon, 36, of Akron, Ohio, was charged with money laundering conspiracy, operating an unlicensed money transmitting business and conducting money transmission without a D.C. license.

According to the indictment, Harmon operated Helix from 2014 to 2017. Helix functioned as a bitcoin “mixer” or “tumbler,” allowing customers, for a fee, to send bitcoin to designated recipients in a manner that was designed to conceal the source or owner of the bitcoin. Helix was linked to and associated with “Grams,” a Darknet search engine also run by Harmon. Harmon advertised Helix to customers on the Darknet as a way to conceal transactions from law enforcement."

https://www.justice.gov/opa/pr/ohio-resident-charged-operati...

Re: MakerDAO gets stress tested as ETH price plummets

#85

Post by perl4ever »

rolltiide wrote: post #81
perl4ever wrote: post #63

Earlier quoted context omitted.

"Everyone with dollar signs now is going to research that and bid $1 until the order book is populated and it never happens again." Not familiar with this, but your comments sound like "we have a proof of concept that this issue could be solved, therefore it is solved".

> but your comments sound like "we have a proof of concept that this issue could be solved, therefore it is solved". What? No. This is about more people showing up to a foreclosure auction because they heard about the guy that bid $0 by being the only person at the foreclosure auction, and flipped a property for $4mm. And then you have an actual market. The auction house itself doesn't need to be patched. The auction…

I just feel like it's a typical libertarian comment that markets solve things because they will probably react eventually. It's not wrong to expect the feedback, but in the meantime, havoc that affects people occurs. That legitimately can affect peoples' opinion of a process.

Re: MakerDAO gets stress tested as ETH price plummets

#86

Post by 3solarmasses »

Taek wrote: post #73
daveytea wrote: post #59

Earlier quoted context omitted.

> There's no way to instantly convert the stablecoin back into the collateral asset, you have to find someone with a CDP who is willing to buy the stablecoin from you. This is incorrect and actually doesn't make sense. An important part of DeFi are DEXes (decentralised exchanges) such as Uniswap and Kyber. There is a liquidity pool where you can instantly buy/sell assets. There is no 'waiting' to find someone (i.e. n…

> You can hold DAI without opening a CDP If you hold Dai without opening a CDP, the only way to convert that Dai back to Eth is to find someone who opened a CDP and is willing to buy from you. Similarly, if you opened a CDP and then sold the Dai, the only way to get your Eth back out of the CDP is to find someone who is willing to sell you Dai. The Maker liquidity crisis yesterday happened because there were more peo…

Sorry but please try to use something in an ecosystem before you bash it. Little of what you're saying is true in the least.

CDP owners the only buyers of DAI?! DAI is on every dex, with pairs for a ton of assets. Try out Uniswap...

Re: MakerDAO gets stress tested as ETH price plummets

#87

Post by rhlsthrm »

arcticbull wrote: post #79
rhlsthrm wrote: post #45

Earlier quoted context omitted.

The real idea here is even beyond going long on ETH. It's multi collateral DAI. The idea that you can (eventually) lock up any collateralized asset and mint DAI. Need to take out a mortgage on a property you own? You can do it automatically and atomically through smart contracts without any middlemen. Eventually people could tokenize things like their future earnings and take out a loan against that now. As dystopian…

> mortgage... Where on earth are you going to get accurate price data for a house when you allow this? What if the foundation is crumbling and there are termites? The process of getting a mortgage involves a ton of inspections, background checks and paperwork. No amount of magic blockchain dust will change that. > Eventually people could tokenize things like their future earnings and take out a loan against that now.…

Why can't all the background checks and inspections be part of the process towards tokenizing the house? If everything is verifiable and transparent on the blockchain it can surely be used for this process.

The key with this is it's not unsecured. It's secured by something.

Re: MakerDAO gets stress tested as ETH price plummets

#88

Post by [deleted] »

perl4ever wrote: post #84
nootropicat wrote: post #82

Earlier quoted context omitted.

I'm not aware of that.

Here you go: "An Ohio man was arrested for his operation of Helix, a Darknet-based cryptocurrency laundering service. In the three-count indictment unsealed Feb. 11 in the District of Columbia, Larry Harmon, 36, of Akron, Ohio, was charged with money laundering conspiracy, operating an unlicensed money transmitting business and conducting money transmission without a D.C. license. According to the indictment, Harmon…

[deleted]

Re: MakerDAO gets stress tested as ETH price plummets

#89

Post by nootropicat »

perl4ever wrote: post #84
nootropicat wrote: post #82

Earlier quoted context omitted.

I'm not aware of that.

Here you go: "An Ohio man was arrested for his operation of Helix, a Darknet-based cryptocurrency laundering service. In the three-count indictment unsealed Feb. 11 in the District of Columbia, Larry Harmon, 36, of Akron, Ohio, was charged with money laundering conspiracy, operating an unlicensed money transmitting business and conducting money transmission without a D.C. license. According to the indictment, Harmon…

Right. For some reason I misread your previous comment as miners, not mixers. But now I don't fully understand why you brought mixers up, mining is a different activity.

Re: MakerDAO gets stress tested as ETH price plummets

#90

Post by arcticbull »

rhlsthrm wrote: post #87
arcticbull wrote: post #79

Earlier quoted context omitted.

> mortgage... Where on earth are you going to get accurate price data for a house when you allow this? What if the foundation is crumbling and there are termites? The process of getting a mortgage involves a ton of inspections, background checks and paperwork. No amount of magic blockchain dust will change that. > Eventually people could tokenize things like their future earnings and take out a loan against that now.…

Why can't all the background checks and inspections be part of the process towards tokenizing the house? If everything is verifiable and transparent on the blockchain it can surely be used for this process. The key with this is it's not unsecured. It's secured by something.

Secured by what? Magic beans that live in your computer? That's strictly less powerful than the contract law an unsecured loan is based on today. It's also totally verifiable: the person lending you the money has every interest in retaining an audit trail for themselves. They're the only ones that need to verify this. Who on earth else needs to know you have a loan?
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