Marginally related (this paper explains the mechanisms of a DeFi exploit which are the same mechanisms used generally in this 'strategy'):
https://arxiv.org/abs/2003.03810
Two Ethereum DeFi traders just made $120M using a strategy called 'looping'
11–20 of 68 posts
Re: Two Ethereum DeFi traders just made $120M using a strategy called 'looping'
#12Wouldn't a sane individual cash it in and retire at that point? Even cashing 1/2 of it would pay for pretty much any lifestyle a person might want...
It is in our nature to constantly desire more...
Re: Two Ethereum DeFi traders just made $120M using a strategy called 'looping'
#13Basically they’re just using their own money and leveraging 2x. Does that sound about right?
Re: Two Ethereum DeFi traders just made $120M using a strategy called 'looping'
#14So who lost $120M? This is a zero-sum system.
Re: Two Ethereum DeFi traders just made $120M using a strategy called 'looping'
#15This "strategy" smells very much like the one that /u/ControlTheNarrative infamously used on Robinhood back in 2019 (and blew up his account).
what a legend
Re: Two Ethereum DeFi traders just made $120M using a strategy called 'looping'
#16So who lost $120M? This is a zero-sum system.
Nobody gains or loses anything tangible until they liquidate. Assuming they manage to do so without crashing the market, it would be those people who bought in at the high because "Ethereum is going up".
Re: Two Ethereum DeFi traders just made $120M using a strategy called 'looping'
#17DeBank is a sort of social network, for wallets, so I've linked the two below so that you can clearly see what is going on here.
What nobody here is discussing, is the fact that these wallets already have $1.2B and $1.8B worth of funds in them. Depositing $150m is not a big risk for them.
If you are into DeFi, it is obvious they know what they are doing. These wallets are using money to make money, pure and simple.
https://debank.com/profile/0x28a55c4b4f9615fde3cdaddf6cc01fc...
https://debank.com/profile/0x741aa7cfb2c7bf2a1e7d4da2e3df6a5...
Re: Two Ethereum DeFi traders just made $120M using a strategy called 'looping'
#18This ought to be as newsworthy as the headline "Gambler just made $120M using a strategy called 'bet it all on a horse with 20-1 odds"
Re: Two Ethereum DeFi traders just made $120M using a strategy called 'looping'
#19This ought to be as newsworthy as the headline "Gambler just made $120M using a strategy called 'bet it all on a horse with 20-1 odds"
It's not, because the risk is calculated.
Finance has been doing the same for ages, so these people may come from a very traditional finance background...
Re: Two Ethereum DeFi traders just made $120M using a strategy called 'looping'
#20This ought to be as newsworthy as the headline "Gambler just made $120M using a strategy called 'bet it all on a horse with 20-1 odds"
It's not, because the risk is calculated. Finance has been doing the same for ages, so these people may come from a very traditional finance background...
100% they have a background in finance. It is apparent when you look at their wallets.