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Crypto lobbying is going ballistic
201–203 of 203 posts
Re: Crypto lobbying is going ballistic
#202Earlier quoted context omitted.
I hold a decent chunk of change in stable coins most of which I lend out to earn interest. Sometimes I top up a VISA card with those stables and then buy groceries. You might reply "you're just using a proxy of USD the original currency, its not new". That's true my reply to that would be: Having the USD be on chain allows very efficient lending. For eg. I can use a lending aggregator that is constantly polling many…
Yield is meaningless without knowing risk. What is the expected default rate under adverse economic conditions? Are borrower credit ratings available from independent sources? What is the counterparty risk for the lending aggregators and sources? Chasing yield is a recipe for disaster.
> Yield is meaningless without knowing risk. What is the expected default rate under adverse economic conditions? Are borrower credit ratings available from independent sources? What is the counterparty risk for the lending aggregators and sources?
100% agree, I hope my comment didn't paint it as if there is no risk. In terms of default, virtually all borrow lend dApps currently are overcollatoralized so if the borrower defaults, they are liquidated and I will be made whole.
> Chasing yield is a recipe for disaster.
Kind of a bizarre and baseless statement? Why should people not earn yield on their capital? We are all constantly losing purchasing power to inflation, it makes absolute sense to earn yield to negate this.
Re: Crypto lobbying is going ballistic
#203Earlier quoted context omitted.
I hold a decent chunk of change in stable coins most of which I lend out to earn interest. Sometimes I top up a VISA card with those stables and then buy groceries. You might reply "you're just using a proxy of USD the original currency, its not new". That's true my reply to that would be: Having the USD be on chain allows very efficient lending. For eg. I can use a lending aggregator that is constantly polling many…
> use a lending aggregator that is constantly polling many lending sources and moves my money to the best source of yield regularly If you live somewhere where cryptocurrency gains are taxed as income, how do you handle the reporting of this at tax time? It seems like it would be tedious to keep track of every transaction across multiple defi platforms.
> If you live somewhere where cryptocurrency gains are taxed as income, how do you handle the reporting of this at tax time? It seems like it would be tedious to keep track of every transaction across multiple defi platforms.
It's so country by country right now due to how early we are. Tax rules will be more clearly defined assuming Web3 and DeFi continue to be adopted over time.