Stablecoins are stupid no matter how many layers of Rube Goldberg crap the developers slap on top.
The collapse of the IRON stable coin
111–120 of 502 posts
Re: The collapse of the IRON stable coin
#112Did these people also write their ”smart contract” in anything resembling JS?
Re: The collapse of the IRON stable coin
#113Earlier quoted context omitted.
I was not even talking crypto but 'normal' CEOs. I mean a famous one was the guy (do not think he was the CEO but close to him?) from Groupon: he was a known scammer and yet, he gets bingo every time. And many many more. Edit: whoops I never knew what became of Groupon but I see it was a massive scam altogether. Seems the investors could have known that from the first time they met the founders by just typing some na…
Reminds me of Kevin O'Leary. Buddy toppled a software industry at the height of the first internet boom. That's either a special kind of incompetence or something worse. They almost always seem to get bingo; the companies and the people that rely on them take the hit. https://www.nationalobserver.com/2016/02/18/news/did-kevin-o...
Ah yes, thank you, good one. It was a gold rush not unlike now with cryptocoins. Everyone shouted 'this time it is different' which I hear a lot now again. Things do not keep growing. Covid delayed the real crisis. I digress: yes people like this: how can you not do a basic amount of dd and at least ask some people about them?
Re: The collapse of the IRON stable coin
#114This has always been the problem with smart contracts. They are infact dumb contacts. To program one you need to think about all the edge cases. The programmers here likely did want >0 here. The possibility that the thing feeding price data return zero incorrectly was higher than the price legitimately being zero in their minds. There is no court or lawyer who can interpret the spirit of the contract.
Do you see no value in throwing these "dumb contracts" out there and seeing what happens? An expensive experiment for the speculators, but we got to the moon on a roman candle iterated a billion times, so I'm personally just curious about these programmable organizations of digitalized willpower.
Re: The collapse of the IRON stable coin
#115The line of source code cited in the post isn't immediately evident in the Iron Contracts repo: require(_share_price > 0, “Invalid share price”); https://github.com/IronFinance/iron-contracts Is it in a different repo? Does it exist?
Seems this line is in Polygon contract: https://github.com/IronFinance/iron-polygon-contracts/blob/m...
Re: The collapse of the IRON stable coin
#116Earlier quoted context omitted.
Are you saying the only time a contract is disputed is when the other party is evading the law? Nobody abuses the legal system to screw over people without enough resources to fight in court?
I'm saying the legal system takes authority. A smart contract doesn't avoid or override that authority. https://digitalchamber.org/wp-content/uploads/2018/02/Smart-... > Is A Smart Contract Always A Legal Contract? > No. Because a smart contract is computer code, a smart contract may represent all, part, or none of a valid legal contract under U.S. law. Smart contracts function – in whole or in part – to give effect…
It's common for people to take mechanical/technological steps to make sure agreements will be respected when they know that if they just wrote a contract they could not rely on the legal system to enforce it in a reliable or economical manner. This is not necessarily bad.
When I get my car fixed at the mechanic, I am paying for the service but at no time do I transfer ownership to him. One procure we could follow is for him to do the repair, give me my car back, ask for payment, and then pursue me in court if I refuse to pay. But instead, the procedure is that he just keeps the car in his garage until I pay. (If I want to call the police to get my car back, I can, but now I have to explain to them why I'm not paying, and enforcement is much easier.) This forces me to respect the agreement we made - repairs in exchange for money - in a more robust way than any contract ever could.
Re: The collapse of the IRON stable coin
#117Earlier quoted context omitted.
I think the point is more that if you owe $200M to someone, a court is unlikely to accept "it's irreversibly stuck in a smart contract" as an out.
Sure, but if you both sign a legal contract to obey the outcome of the smart contract then no one owes anything, because the smart contract says that the $200M is gone. Obviously this doesn't allow you get around laws such as warranties but I don't see why it can't be used if everyone agrees to it.
That's not how US civil courts work. If a contract is flawed then a judgment can be rendered based on intent, equity, and other factors. There are centuries of common law precedent for this. The existence of blockchains and "smart" contracts changes nothing.
Re: The collapse of the IRON stable coin
#118This has always been the problem with smart contracts. They are infact dumb contacts. To program one you need to think about all the edge cases. The programmers here likely did want >0 here. The possibility that the thing feeding price data return zero incorrectly was higher than the price legitimately being zero in their minds. There is no court or lawyer who can interpret the spirit of the contract.
> There is no court or lawyer who can interpret the spirit of the contract. That's obviously the point, though. You are trading one set of risks for a completely different set of risks that might suit your use case much better; your counterparty being able to contest a contract in court could very well be a "bad" thing for you.
> You are trading one set of risks for a completely different set of risks that might suit your use case much better; your counterparty being able to contest a contract in court could very well be a "bad" thing for you.
There is no trade of risks. The judicial system is still going to assert their authority over contracts. Your counterparty will still be able to contest a contract in court. The guys with guns the court sends out to enforce their verdict are not going to be impressed with "code is the contract" and "blockchain". They will lead you to a (jail cell) block in chains (handcuffs) if you try to defy the court order.
Instead you are trading specification of contracts in a legal language where there has been centuries of experience in writing and interpreting those contracts, for specifying the contract in a new language that is still evolving and where there is not a whole lot of legal precedent on how to interpret them and how to resolve bugs.
These "smart contracts" are not decreasing your risk, but rather increasing it.
Re: The collapse of the IRON stable coin
#119The line of source code cited in the post isn't immediately evident in the Iron Contracts repo: require(_share_price > 0, “Invalid share price”); https://github.com/IronFinance/iron-contracts Is it in a different repo? Does it exist?
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Re: The collapse of the IRON stable coin
#120Earlier quoted context omitted.
According to the graph in the post ( https://miro.medium.com/max/6088/1*tzpAFvuxVeumWO8ENz_SZg.pn... ), it's somewhere around 0.0961 as of that time, and I suppose the price oracle they're using rounds that down to zero, perhaps? Or maybe the contract is rounding it down? Either way, I agree it's odd that exactly zero would be reported even if it's very close to zero. edit: Nevermind, I misread. It's -0.0961, apparen…
Negative 0.0961
Oops, you're right. I misread.