Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Solend seized $170M of user funds

old.reddit.com

Post reply on HN
Print view View original

131–140 of 221 posts

Re: Solend seized $170M of user funds

#131

Post by timeon »

melony wrote: post #75
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.

So what is the downside of crypto? All the furor seems to be about how the whale's funds were seized. But there is no evidence to the contrary that this won't happen in day to day Wall Street banking. From patio11's > When we say “crypto is speedrunning learning what finance already knows” sometimes it is about attacks but sometimes it is about quotidian topics like “Can you adversarially blow your clients out of tra…

You are right, crypto is pointless then.

Re: Solend seized $170M of user funds

#132

Post by JumpCrisscross »

roenxi wrote: post #112
NikolaNovak wrote: post #97

Earlier quoted context omitted.

Xkcd of course had it right even back when "crypto" meant something else :) https://xkcd.com/538/ Regulation and law indeed may not be able to beat crypto technologically. They don't need to. Humans are the weak squishy link in the chain. I don't need a supercomputer to crunch down your crypto, I need a warrant for your arrest or subpoena to ask for all your documents. I can outlaw your ability to operate without log…

> I can outlaw your ability to operate without logs. Even going full Nazi, how do you enforce a law that technically challenging without bankrupting the government or crippling the economy? And what time-frame does it take to phase in?

> how do you enforce a law that technically challenging without bankrupting the government or crippling the economy?

Drugs paid with cash are challenging. Crypto is not. Authoritarian states can do deep packet inspection and random phone/computer checks. Advanced states can just roll it into their AML frameworks, as well as track the purchase of mining equipment and their inputs. Both will offer whistleblower rewards.

There will still be people who use it. But it will fall out of the mainstream. More people are more enthusiastic about cocaine than about crypto, and your enjoyment from an ounce of cocaine isn’t dependent on others using it. For crypto, it is.

Re: Solend seized $170M of user funds

#133

Post by cowtools »

JumpCrisscross wrote: post #130
djbusby wrote: post #83

Earlier quoted context omitted.

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.

With some level of plausible deniability, you pass the hit-them-with-a-wrench test because you can't just hit everyone with a wrench.

Re: Solend seized $170M of user funds

#134

Post by SilasX »

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…

If they wanted to do that, they would have deposited stablecoins and borrowed Solana.

Re: Solend seized $170M of user funds

#135

Post by rvz »

smoe wrote: post #71
dang wrote: post #60

Earlier quoted context omitted.

Ok, we've changed the title to that. (Submitted title was "Solend just seized $170MM of user funds to prevent a decrease in Solana's price".) If someone suggests a better title (i.e. more accurate and neutral, preferably using representative language from the submitted article), we can change it again. And if there's a better URL than the Reddit thread, we can change that too.

I think a better url would be the governance proposal itself https://realms.today/dao/7sf3tcWm58vhtkJMwuw2P3T6UBX7UE5VKxP... Linked from this tweet by solend https://twitter.com/solendprotocol/status/153844135044142284...

That first link is very accurate and already explains the proposal in depth rather than the clickbait and low effort reddit post who are reacting aggressively and screeching at the headline.

Speaking of which suggests to me that the majority of the tribal redditors in that subreddit commenting have not been around since the controversial Ethereum DAO hack which already abandoned the nonsensical 'cOdE iS lAW' idea and already set that precedent and is no different to what is happening to Solend on Solana.

So it is no surprise that the majority of DeFi, DAOs, etc has been one giant scam which will result in the collapse of many tokens, projects and even blockchains because of these false promises from the very beginning. The reality is that after regulations come in, only a select few blockchains projects will stick around.

Re: Solend seized $170M of user funds

#136

Post by wyager »

PragmaticPulp wrote: post #7

One of the themes in pro-crypto writings has been the idea that as long as you “do your own research” then the bad things won’t happen on your chosen cryptocurrency. The prevailing idea (among pro-crypto spaces) is that bad things only happen to other people who deserve them because they didn’t do the right research. Recently we’re seeing the bad things happen in more and more mainstream chains. Even famous NFT propo…

Basically anyone I consider especially credible has been consistently saying "everything except bitcoin is overwhelmingly likely to be a scam", which has proven to be a fairly reliable heuristic. I think anyone who actually "DTOR" and has the brain power to interpret the results comes to a similar conclusion.

Re: Solend seized $170M of user funds

#137

Post by wyager »

3a2d29 wrote: post #25
PragmaticPulp wrote: post #7

One of the themes in pro-crypto writings has been the idea that as long as you “do your own research” then the bad things won’t happen on your chosen cryptocurrency. The prevailing idea (among pro-crypto spaces) is that bad things only happen to other people who deserve them because they didn’t do the right research. Recently we’re seeing the bad things happen in more and more mainstream chains. Even famous NFT propo…

Not to be super “arm chair psychologist” about this, but I always thought the whole “you deserve it if you got scammed” mentality comes from the people that believe crypto will replace all modern finance. For crypto to replace modern finance, it needs to be better in every way (so it’s a total replacement). Decentralized currency is better for some things, worse for things like preventing scams. If modern finance pre…

> For crypto to replace modern finance, it needs to be better in every way

I don't think this follows logically at all. Can you explain your thought process? (FWIW, I think that most likely the only component of finance that will be replaced by "crypto" [most likely just bitcoin] is the money and payments layer, so I probably agree with you in general.)

Re: Solend seized $170M of user funds

#138

Post by EdwardDiego »

cowtools wrote: post #133
JumpCrisscross wrote: post #130

Earlier quoted context omitted.

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

With some level of plausible deniability, you pass the hit-them-with-a-wrench test because you can't just hit everyone with a wrench.

Not with that attitude you can't.

Re: Solend seized $170M of user funds

#139

Post by nradov »

douglaswlance wrote: post #53
3a2d29 wrote: post #25

Earlier quoted context omitted.

Not to be super “arm chair psychologist” about this, but I always thought the whole “you deserve it if you got scammed” mentality comes from the people that believe crypto will replace all modern finance. For crypto to replace modern finance, it needs to be better in every way (so it’s a total replacement). Decentralized currency is better for some things, worse for things like preventing scams. If modern finance pre…

>it needs to be better in every way It only needs to be better in enough ways to persuade enough people to adopt it such that it hits a tipping point and becomes the de facto standard.

It's going to be tough to convince the politicians and financial system regulators. Cryptocurrency will be mostly useless for legitimate transactions until they allow using it for tax payments.

Re: Solend seized $170M of user funds

#140

Post by nradov »

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] […

Right, that's the point. Unless you're stuck in some shithole country like El Salvador, there's no purpose to cryptocurrency.
Post reply on HN