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Solend seized $170M of user funds

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Re: Solend seized $170M of user funds

#121

Post by ethbr0 »

jasonwatkinspdx wrote: post #63
granddemolisher wrote: post #40

Earlier quoted context omitted.

I find it as absurd as anyone else. The field is unfortunately rifled with people who are shills and religious believers. I have talked to a few VCs and technical people drilling down into the tech - I had better arguments than them for why someone would use the projects they funded or created.

Just last night the owner of the neighborhood convenience store was asking me to explain NFTs, as one of his other regulars was hyping them up earlier that day. This man has run his business for decades, understands commercial banking services, etc. I could not for the life of me fully convince them that with NFT's, "there's no there there." Like these things have been so hyped by so many people close enough to the m…

I lead with "Amateurs calculate gains; professionals calculate risk."

Re: Solend seized $170M of user funds

#123

Post by cowtools »

ethbr0 wrote: post #116
cowtools wrote: post #105

Earlier quoted context omitted.

Go ahead, unlock your hard drives then. Disable HTTPS, it makes no difference right? The government can just do evil maid attacks while you're asleep or rubber-hose whatever CA you're using anyways. While you're at it, why don't you leave the door to your house unlocked? The government can just kick it in whenever they want, no biggie, right? Strong cryptography still remains a formidable barrier for law enforcement,…

Munroe isn't a pessimist: he's a humorist.

well you know what they say about humor on the internet, poe's law and all.

I guess the joke is that security is presented as an all-or-nothing situation, when in reality security is just about disproportionally increasing the cost for attackers and decreasing the severity of their attacks.

Re: Solend seized $170M of user funds

#124

Post by vkou »

yunohn wrote: post #78
nrmitchi wrote: post #11

> The proposal succeeded hours after it was proposed, with one whale providing 1 million votes out of the 1.15 million votes in favor. Decentralized my ass

Let me get this straight. They used the majority voting power of a DAO whale, to seize the funds of a user whale? Irony at its finest.

The DAO whale only staked half-a-million dollars, the seized funds are $170 million.

The $170 million whale didn't show up to vote, so I guess under the rule of code-is-law, that means he can now be cut up, processed, and turned into whale burgers.

Re: Solend seized $170M of user funds

#125

Post by malka »

cowtools wrote: post #70
ReptileMan wrote: post #66

Earlier quoted context omitted.

Because you have to convert the crypto into fiat to procure goods and services and the state will just control the border. There will be cases in which a weak state economy can become bitcoinized the same way some have become dolarizesld, but for strong states it is easy to make the border between the currencies as tight as they want it.

>Because you have to convert the crypto into fiat to procure goods and services You do? What is the purpose of cryptocurrency if you are just going to convert back into cash the moment you use it? I think the end goal for cryptocurrency is to create a circular, P2P economy[0][1] Seems pretty difficult to regulate only some cryptocurrencies if it's already possible to anonymously and trustlessly swap between them[2] […

At some point, you ll need to pay taxes. in the money of choice of your current governing body.

Re: Solend seized $170M of user funds

#126

Post by Melting_Harps »

scrlk wrote: post #27
Melting_Harps wrote: post #13

Earlier quoted context omitted.

> defi at its best. zero upside of centralized finance with all the downsides, after all. DeFi definitely over promised, and under delivered: the part that I take issue with is why build these tools on centralized alt currencies? I mean if you think NFTs are the extent of DeFi (much of which is what web3 hinged on) than this was predictably going to fail just like the ICO craze did. Smart contracts based on oracles a…

>I just can't see why anyone would place this much trust in a PoS coin with a central governance and with major stake by VC in SV. In a bullrun, no one cares about "decentralisation" or "fundamentals", they just want to make as much money as possible, even if it means interacting with CEXs/CeFi/centralised L1 scamchains etc. Only when things go south do people understand why "decentralisation" is important.

> Only when things go south do people understand why "decentralisation" is important.

So the greater fool theory isn't a feature of the platform as it's often portrayed as by it's detractors, but rather a self-imposed one by the new cohorts?

I guess that while the tech matures the fomo aspect never seems to go away regardless of time.

> because the decentralized cryptocurrencies are expensive to transact with — because many people, like you, strongly prefer to use the decentralized ones and so pay a premium to do so.

It's currently .20 to do a 10 min tx on BTC layer 1, and near free and instant on layer 2. How is this expensive?

Re: Solend seized $170M of user funds

#127

Post by cowtools »

nemothekid wrote: post #119
cowtools wrote: post #105

Earlier quoted context omitted.

Go ahead, unlock your hard drives then. Disable HTTPS, it makes no difference right? The government can just do evil maid attacks while you're asleep or rubber-hose whatever CA you're using anyways. While you're at it, why don't you leave the door to your house unlocked? The government can just kick it in whenever they want, no biggie, right? Strong cryptography still remains a formidable barrier for law enforcement,…

> Go ahead, unlock your hard drives then. Disable HTTPS, it makes no difference right? In what world is the Government your only threat?

It's a good question. I wonder this too.

But until we can make cryptography that is criminal-proof but not government-proof, and until the government can feasibly enforce its use, then I don't think it really matters.

It's hard to imagine any tool that only works against criminals but not against the government. Especially considering that there's a spectrum between criminal organizations and government organizations.

Re: Solend seized $170M of user funds

#128

Post by laweijfmvo »

ChuckMcM wrote: post #10

And @patio11's take : https://twitter.com/patio11/status/1538601104098852865 which is illuminating as well. The whole "crypto is speed running through the finance playbook" theme is fascinating to me.

Thanks, this Twitter thread explained it all in plain English.

Edit: Last question:

> On the one hand here, we have one (rich) guy. Perhaps he is sophisticated, perhaps not, perhaps he believes code is law, perhaps not.

> He used a computer program to borrow $100M.

> The people who wrote that computer program are now terrified of it.

So does Rich Guy get to keep the $100M in stable coin regardless of what happens to the SOL he put up?

Re: Solend seized $170M of user funds

#129

Post by [deleted] »

psKama wrote: post #62
renewiltord wrote: post #26

Earlier quoted context omitted.

They don't have voting rights because they don't have SOL. They don't have SOL because they put it in there to get USDC+USDT. If they don't believe in the depth of the SOL/USD(C|T) books this could just be a way to sell SOL or go short SOL. This whale is probably just happy to default on the loan and get liquidated at this point.

> This whale is probably just happy to default on the loan and get liquidated at this point. It's too bold to assume this. This whale is probably so angry right now because they ruined his/her plan causing him/her million of dollars. 1) Find an opportunity to drive the price of SOL down due stupid DeFi design lacking 101 Economy knowledge. 2) Go short on SOL 3) Use the opportunity to cause a slippage of 46% in price…

[deleted]

Re: Solend seized $170M of user funds

#130

Post by JumpCrisscross »

djbusby wrote: post #83
cowtools wrote: post #61

Earlier quoted context omitted.

>The undeniable fact is that regulations will be put in place for crypto why is this so undeniable? I would think well-implemented cryptocurrencies would be fairly regulation resistant

How would a technical implementation detail block legislation?

There is a crypto subculture that thinks crypto is unbannable for a variety of reasons that fail the hit-them-with-a-wrench test.
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