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SafeDollar ‘stablecoin’ drops to $0 following DeFi exploit on Polygon

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Re: SafeDollar ‘stablecoin’ drops to $0 following DeFi exploit on Polygon

#351

Post by pjerem »

unholiness wrote: post #339
mrec wrote: post #18

Earlier quoted context omitted.

I've seen them described as "self-funding bug bounties".

But it's so much worse than that, right? Bugs in a smart contract are immutable. Those are just the terms everyone agreed to. There's simply no path to deploying a fix that every good actor agrees is beneficial.

I guess technically you can deploy a new contract that reverses the previous contract outcomes then replays the « fixed » terms. Good luck to find a common agreement though. And so much more possibilities for new bugs.

Re: SafeDollar ‘stablecoin’ drops to $0 following DeFi exploit on Polygon

#352

Post by marton78 »

lazzlazzlazz wrote: post #164

There are more than $100b of stablecoins — 285x year-over-year growth — with a variety of very interesting and high-quality stablecoins proliferating. And of course, Hacker News focuses on some garbage project nobody in the space even followed. How is there no discussion about FRAX, Maker's DAI, USDC, CRV's 3pool token, Liquity's LUSD, and so many other interesting projects?

Why is everyone talking about the condo that collapsed recently in Miami? There are so many condos still standing, but nobody cares!

Re: SafeDollar ‘stablecoin’ drops to $0 following DeFi exploit on Polygon

#353

Post by incrudible »

graeme wrote: post #183
Jhsto wrote: post #168

Earlier quoted context omitted.

Despite the low liquidity on the exchange, the market cap of the token was supposedly $250M: https://twitter.com/Mudit__Gupta/status/1409463917290557440?...

How did they have a marketcap of $250M as a stablecoin when they had 1000x less in reserves?

That was the exploit. 248 million tokens were minted on $250k collateral.

Re: SafeDollar ‘stablecoin’ drops to $0 following DeFi exploit on Polygon

#354

Post by salt-thrower »

__s wrote: post #346
PragmaticPulp wrote: post #317

Earlier quoted context omitted.

> A relatively unknown, recently launched stablecoin collapsing is not big news in crypto. The fact that some people think a $250,000 heist followed by the collapse of a half a million dollar stablecoin is "not news" underscores how ridiculous the cryptocurrency space is right now.

VCs blowing an order of magnitude more on coke doesn't make the news

A VC publicly saying "I don't spend money on coke" as a marketing tactic and then getting busted doing just that would make the news. Much like a coin that claims "this coin is stable and its value is tied to USD" getting looted and crashing to $0 also makes the news.

Re: SafeDollar ‘stablecoin’ drops to $0 following DeFi exploit on Polygon

#355

Post by diamond559 »

ncann wrote: post #206
UIGYUIUYG wrote: post #175

Earlier quoted context omitted.

You can literally say that about cold hard cash. Blackmail? Pay cash. Buying illegal substances? Cash. Gambling? Get your cash out. It's all in how you use it. https://eandt.theiet.org/content/articles/2021/05/moon-missi... Anything is a store of value, wood, gold, water, dogecoin ect. If people want to accept something for something else this is a way of life. It's just sad that people only see the bad use cases. Ho…

> It's just sad that people only see the bad use cases Yeah, when 95%+ of the actual things that people use crypto for are those things, it's hard not to. Can you honestly say the "valid" uses for crypto take up more than 5% the total volume in any possible metric you can think of? It's always ransomware, extortion, blackmail, money laundering, drugs, you name it.

So you're just making up number because they sound right to you? In the future, if you do some simple googling before you join a conversation you'll sound less uninformed.

https://www.newsweek.com/illegal-use-bitcoin-dropped-50-2020...

Re: SafeDollar ‘stablecoin’ drops to $0 following DeFi exploit on Polygon

#356

Post by fleddr »

slownews45 wrote: post #336
rednerrus wrote: post #207

Earlier quoted context omitted.

USDT failed a LONG time ago.

No kidding - each of the these crypto folks go "trust us" - and then even the simplest things (1:1 US Dollar backed coin - seriously - how hard is this!) turn out to be a full of crap and lies. And if you believe USDT has been 1:1 backed by us dollars for its full history - dream on. If you believed they would actually get audited when they said they would - hahah.

Your statement "how hard is this" shows your complete incompetence regarding the backing of anything.

Nothing of value is backed in our world. If a mere 7% of bank account holders go to the bank to collect their money, the bank collapses. They don't have your money, it's not there.

If all owners of gold (gold value papers) today claim their physical gold, it can't be done. There's 400% more value paper compared to the total supply above ground.

If all owners of Apple stock today decide to sell their stock all at the exact same moment, they won't get out the full market cap. Because the entire thing crashed before that. But that won't happen, because the exchange will simply stop the trade.

Which is the same thing crypto exchanges do when things get too heated.

Re: SafeDollar ‘stablecoin’ drops to $0 following DeFi exploit on Polygon

#357

Post by incrudible »

Scoundreller wrote: post #128
exdsq wrote: post #35

Earlier quoted context omitted.

If I create a USD-stablecoin with a supply of $1 backed by my $1 in US bonds, is that legit?

But nobody in crypto would willingly trade their crypto for something backed by fiat and therefore inflating. Right?

Wrong. Unlike bank deposits or treasury notes, stable coins have interest yields to outweigh inflation.

Re: SafeDollar ‘stablecoin’ drops to $0 following DeFi exploit on Polygon

#358

Post by notJim »

mgfist wrote: post #340
PragmaticPulp wrote: post #317

Earlier quoted context omitted.

> A relatively unknown, recently launched stablecoin collapsing is not big news in crypto. The fact that some people think a $250,000 heist followed by the collapse of a half a million dollar stablecoin is "not news" underscores how ridiculous the cryptocurrency space is right now.

I don't know much about this space but a half million dollar marketcap is absolutely tiny and non-news. BTC market cap is what, close to a trillion or something?

The top 10 stablecoins together have a total market cap of around $100 billion. Of that, $62 billion is tether, and the next largest is USDC at $26 billion, then BUSD at $10 billion.

It is interesting that these exploits still happen.

Re: SafeDollar ‘stablecoin’ drops to $0 following DeFi exploit on Polygon

#359

Post by fleddr »

PragmaticPulp wrote: post #321
lazzlazzlazz wrote: post #164

There are more than $100b of stablecoins — 285x year-over-year growth — with a variety of very interesting and high-quality stablecoins proliferating. And of course, Hacker News focuses on some garbage project nobody in the space even followed. How is there no discussion about FRAX, Maker's DAI, USDC, CRV's 3pool token, Liquity's LUSD, and so many other interesting projects?

The stablecoins that succeed aren't very interesting because they're simply blockchain representations of actual funds held elsewhere. Or at least funds that are claimed to be held somewhere. Those stablecoins are simply a redeemable, tradeable representation of money held somewhere else. These artificial stablecoins that attempt to get clever with algorithmic finance and smart contracts are interesting because they…

You say they are "simply" a representation of fiat money, basically a fiat mirror held in crypto, but they play an incredibly important role in the ecosystem:

- In some countries, swapping crypto to stablecoin (another crypto) has no tax implications whilst swapping to fiat does have consequences.

- For big account holders (not me), stablecoins are the only way to put gains on "dry land". If you win big on exchanges, you can't take it out at once, there's withdrawal limits. It can takes months to get it out, years if really rich. During all this time, your gain may finish if you'd hold it in the original coin, so stablecoins secure your profit in the meanwhile.

Fascinating? No, but definitely important.

Re: SafeDollar ‘stablecoin’ drops to $0 following DeFi exploit on Polygon

#360

Post by [deleted] »

UIGYUIUYG wrote: post #236
ncann wrote: post #206

Earlier quoted context omitted.

> It's just sad that people only see the bad use cases Yeah, when 95%+ of the actual things that people use crypto for are those things, it's hard not to. Can you honestly say the "valid" uses for crypto take up more than 5% the total volume in any possible metric you can think of? It's always ransomware, extortion, blackmail, money laundering, drugs, you name it.

One I personally know of - https://cryptoslate.com/another-big-cardano-ada-deal-is-in-t... There is many other cases for blockchain / crypto technologies far beyond the world of ransomware, extortion, blackmail, money laundering. > The country will implement a national, blockchain-based student and teacher ID and attainment recording system to digitally verify grades, remotely monitor school performance and boost edu…

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