So, Dai is a stablecoin that by my understanding is collateralized similarly to this one, except that it requires ether (and I believe USDC is also an option). However, its peg held up very well during the recent precipitous drop in the price of ether. I'm curious if anyone here knows whether that was an algorithmic success in comparison to this, or perhaps just an artifact of people having more confidence in ether.
The collapse of the IRON stable coin
241–250 of 502 posts
Re: The collapse of the IRON stable coin
#242Earlier quoted context omitted.
> but why would Circle want to help out this contract and lose 262 million? Probably a rhetorical question, but they might decide that it's a price they can pay for trust in their system. Not sure if I understood where the real value currently is though.
USDC's system didn't fail. The money transmitter (smart contract- IRON/TRON) failed, if the USDC is indeed 'locked' or not able to be transmitted. USDC can't be compelled by anyone to 'fix' this. If USDC can revoke any p2p transaction of USDC, that means that they can revoke the transmission of movement of dollars/reserves that USDC token represents. Implicit in that, means they have ultimate control or authority of…
Circle can in fact ban addresses from transacting USDC and has done so working with law enforcement: https://www.coindesk.com/circle-confirms-freezing-100k-in-us...
Re: The collapse of the IRON stable coin
#243I have never read so much about nothing as I have when reading about some new coin. It's worse than a pyramid scheme. At least there, you end up with a decade-worth of skin cream.
I missed out on the unregulated ICO rush because I thought you had to, you know, develop a new blockchain technology for your new cryptocurrency, which is really hard, and I was busy. Much later I learned all you had to do was copy and paste a Solidity program and then promote it. Guess I dodged an ethical bullet in my ignorance, but still...
You can create a new coin in a couple hours, the "hard work" is in selling and promoting it...
Re: The collapse of the IRON stable coin
#244Earlier quoted context omitted.
Most places recognize something called a "mechanics lien" that means the police won't get your car back either. Workmen usually have a legal claim to property that they worked on and have not been paid for. Sometimes it requires specific paperwork (more often with real property, e.g. a contractor can place a lien on your house but usually needs you to agree to it before they start work) but often it's implicit. I gue…
Yes, of course the reality and usefulness of this particular mechanism has now been legally acknowledged and incorporated into the law in some (but not all) places. But mechanisms like this arise organically and are put to use long before they are officially recognized. I expect similar things to happen with smart contracts. In other words: things you might call "evading the law" in fact can be useful and then shape…
Strange emphasis on 'now'. From wiki, "Mechanic's liens in their modern form were first conceived by Thomas Jefferson, to encourage construction in the new capital city of Washington. They were established by the Maryland General Assembly, of which the city of Washington was then a part.[1] However, it is not likely that Jefferson single-handedly dreamed up the idea.
At the time Jefferson promoted the law, a lien-like privilege already existed in civil law countries like France, the Dutch Republic and Spain, with some laws even tracing their roots to the Roman Empire. And since control of Louisiana had passed between the French and Spaniards, and had largely adopted the French Napoleonic Code, there was a similar privilege concept in that territory."
Re: The collapse of the IRON stable coin
#245Earlier quoted context omitted.
12 hours is not a lot of time. And what does it mean that they could exit, when the contract itself was completely broken in the meanwhile?
It's enough time for most people to exit during normal circumstances. Sometimes longer periods are used. Definitely better than nothing. In this case people wouldn't have been able to exit due to the bug, correct.
> It's enough time for most people to exit during normal circumstances.
Most people don't monitor the finer details of their investments 24/7.
12 hours is better than nothing, but it's unrealistic to expect everyone to stay tapped into news feeds about their crypto at minimum twice a day.
Re: The collapse of the IRON stable coin
#246I have never read so much about nothing as I have when reading about some new coin. It's worse than a pyramid scheme. At least there, you end up with a decade-worth of skin cream.
You're talking about multi-level marketing. Which isn't quite a pyramid scheme (even though it is pyramid-ish). Pyramid Schemes have the originators (the "top" of the pyramid) win lots of money, while the base (the "bottom" of the pyramid, where most people are) losers. And the top barely did any work to get there: they just took the money from people below them.
Many MLM companies fit the legal definition of a Pyramid scheme (and have faced consequences from the FTC in some cases).
The general rule is that if the majority of money does not come from selling to retail customers (either directly or downstream), but rather from recruiting new members, then it's a pyramid scheme.
Re: The collapse of the IRON stable coin
#247Earlier quoted context omitted.
Seriously. I posit that many of the programmers in the field have no financial background whatsoever, on top of whatever shaky software background they may also have (especially if they went to a bootcamp). Just hilarious to watch.
I've worked in the space for a few years and can say it's been the opposite experience for me. Had the chance of working on a Haskell project with the original creators of Haskell, being taught QuickCheck by the creator of QuickCheck, testing economic ideas created by professors of Economics at top universities, and sponsored entire compilers and languages to help ensure the software was as solid as possible. One of…
Wow, sounds great. Where have you been working / which cryptocurrencies/services have you been working on?
Re: The collapse of the IRON stable coin
#248Earlier quoted context omitted.
That's the whole point. Code is law. The alternative is our current, arcane legal system - only interpretable by lawyers who charge $600/hr.
Smart contracts don’t protect you from being sued. So, now you need both lawyers and programmers while still risking losing everything.
Not exactly. There are plenty of anonymous projects, developers and users.
Re: The collapse of the IRON stable coin
#249Earlier quoted context omitted.
It's enough time for most people to exit during normal circumstances. Sometimes longer periods are used. Definitely better than nothing. In this case people wouldn't have been able to exit due to the bug, correct.
> It's enough time for most people to exit during normal circumstances. Most people don't monitor the finer details of their investments 24/7. 12 hours is better than nothing, but it's unrealistic to expect everyone to stay tapped into news feeds about their crypto at minimum twice a day.
The main benefit is reducing the incentive for the developers to steal. If you know 90%+ of the funds will disappear before you can do anything then it's much less attractive (where the alternative is making money by fees over time if the protocol is successful).
The risk needs to be balanced with the risk of funds lost because of a smart contract bug that can't be fixed. Different projects make different choices here.
Re: The collapse of the IRON stable coin
#250Earlier quoted context omitted.
> 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.
> your counterparty being able to contest a contract in court could very well be a "bad" thing for you. Evading the law (whether the court or a regulatory body such as the SEC [civil] or DOJ [criminal]) is typically a "bad thing" for the person or people intending to or successfully doing so. https://www.sec.gov/spotlight/cybersecurity-enforcement-acti... (SEC Cyber Enforcement Actions, control-f "blockchain" | "cryp…
> Evading the law (whether the court or a regulatory body such as the SEC [civil] or DOJ [criminal]) is typically a "bad thing" for the person or people intending to or successfully doing so.
Oh wow. If only this were true. If only they were so diligent in punishing other kinds of things.
Here's something I read recently, from the aftermath of the Libor scandal: https://www.sec.gov/news/statement/stein-waivers-granted-dis... . Really highlights how crazy this whole thing is and how there are really two qualitatively different classes with two different sets of rules in our society.