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We’re discontinuing the Stablegains service

blog.stablegains.com

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Re: We’re discontinuing the Stablegains service

#271

Post by lanstin »

nootropicat wrote: post #57
1270018080 wrote: post #3

Least corrupt crypto company. Return is directly correlated to risk, so when a black box corporation is promising 15% returns and marketing itself as a “simple and safe” way for its users to benefit from “advances in financial technology.” It's probably not safe, but it is very simple.

>Return is directly correlated to risk This is at least a weak EMH assumption. It's not a law. In crypto sometimes the opposite is true for short to medium periods of time because uninformed people are afraid of 'too high' returns. Best money is made on market inefficiencies like that.

When I want bright well read people to invest in my scam, I flatter them that they have much better insight than most people and are destined to be ahead of the curve as a result. /s

Re: We’re discontinuing the Stablegains service

#273

Post by Ygg2 »

koheripbal wrote: post #151
jmyeet wrote: post #100

What's funny about this is that I can recall discussions here and elsewhere from only a few months ago questioning the "guaranteed" super-high returns. I forget who said this but someone awhile ago said in finance said that if someone is promising you consistent above-market returns it's either a scam or there is unknown or undisclosed risk. And the Crypto Andys were all like "you just don't understand DeFi!" to whic…

What most people don't understand about finance is that there are fundamental rules that you really cannot break without consequences. Anyone who has studied quantitative finance knows that it is a HARD science. I worked with a Nobel prize winner in economics, and the math dominated. There was no politics, no opinions, no ethics involved. It really is a science. Most social media characterize finance as some ethical…

If finance is a HARD science, where are replicated experiments? How did they account for alternative hypothesis?

Re: We’re discontinuing the Stablegains service

#274

Post by Ygg2 »

323 wrote: post #228
JumpCrisscross wrote: post #220

Earlier quoted context omitted.

> Physics is a science. Math is. Or Biology. Finance is not. Because it deals with the madness of crowds. If you follow the scientific method, it's science. If you write an observational essay, it's not. You can build theories around falsifiable, replicable experiments pertaining to the madness of crowds. The error bars are longer. But they are not infinite.

You are correct. But when people say "finance is science" what they usually mean is "here is the complicated math that proves you can't lose money on this, we've modeled everything". As the joke goes, 6 sigma events happen in finance every week.

> we've modeled everything

That's a great science joke.

Re: We’re discontinuing the Stablegains service

#275

Post by anonymoushn »

jmyeet wrote: post #100

What's funny about this is that I can recall discussions here and elsewhere from only a few months ago questioning the "guaranteed" super-high returns. I forget who said this but someone awhile ago said in finance said that if someone is promising you consistent above-market returns it's either a scam or there is unknown or undisclosed risk. And the Crypto Andys were all like "you just don't understand DeFi!" to whic…

What I find upsetting about these developments is that over a year ago I shopped around an offer to borrow at higher rates with an early repayment option, backed by an actual arbitrage opportunity, and raised way less than these scammers.

Re: We’re discontinuing the Stablegains service

#276

Post by abakker »

djenendik wrote: post #257
mettamage wrote: post #209

Earlier quoted context omitted.

Work at a HFT firm in Amsterdam. That type of finance knowledge will make you rich.

So you can guarantee 20% returns? We're back where started.

look - there are companies out there - Renaissance for one - who do make very good returns consistently. The difference is that not all returns are infinite. in fact, most good investments are finite - the market eventually catches on and then prices equilibrate. saying that there are no guaranteed 20% returns does not mean that with hard work and good strategy there are not 20% returns to be made on some arbitrary amount of principal at any given time.

put another way, its easy to earn 20% on a dollar. its hard to earn 20% on a billion dollars.

Re: We’re discontinuing the Stablegains service

#277

Post by empathy_m »

jmyeet wrote: post #100

What's funny about this is that I can recall discussions here and elsewhere from only a few months ago questioning the "guaranteed" super-high returns. I forget who said this but someone awhile ago said in finance said that if someone is promising you consistent above-market returns it's either a scam or there is unknown or undisclosed risk. And the Crypto Andys were all like "you just don't understand DeFi!" to whic…

I invested money with Stablegains rather than in UST/Anchor more directly because of the YCombinator branding.

I figured that if the system collapsed, I would be able to notice it early and withdraw, and that YC-affiliated investor money would help compensate me with more luck than if I had to liquidate out of the system myself.

I withdrew after seeing a friend on Cryptography Twitter send a message showing the destabilization; this turned out to be many hours before Stablegains announced "we will honor withdrawals before this announcement at 1:1", and I got all my money back out.

The YC brand worked here, I think.

Re: We’re discontinuing the Stablegains service

#278

Post by abakker »

majormajor wrote: post #217
hrunt wrote: post #214

Earlier quoted context omitted.

Well, the S&P (assuming the S&P 500) doesn't represent the entire US economy, but 500 companies that represent, arguably, the "winners" of the US economy, so expecting them to grow 7% while the entire economy as a whole grows less is not unexpected.

How much of that is inflation? If, historically, GDP growth is about 3% and inflation is about 3%, and you're trying to invest in the strongest companies, is that how you get to 7%+?

how many companies lose money for a few years and fold? if the S&P is winners, then it is counterbalanced by all the bad investments, pre revenue startups, and other businesses which are losing money. balancing out to 3% is not impossible.

Re: We’re discontinuing the Stablegains service

#279

Post by vel0city »

lumost wrote: post #150
t-3 wrote: post #94

Earlier quoted context omitted.

A blockchain is already a public permanent record in the first place.

It won’t be once it shuts down. Blockchains are as permanent as the miners that power them.

These were technically coins which were processed as smart contracts in Ethereum. Even if these coins "cease operations" their history will continue to exist in the Ethereum blockchain, forever.

Re: We’re discontinuing the Stablegains service

#280

Post by cookiengineer »

downandout wrote: post #187
jmyeet wrote: post #100

What's funny about this is that I can recall discussions here and elsewhere from only a few months ago questioning the "guaranteed" super-high returns. I forget who said this but someone awhile ago said in finance said that if someone is promising you consistent above-market returns it's either a scam or there is unknown or undisclosed risk. And the Crypto Andys were all like "you just don't understand DeFi!" to whic…

And the Crypto Andys were all like "you just don't understand DeFi!" to which the retort is "No, you just don't understand finance". If you believe the statement "if someone is promising you consistent above-market returns it's either a scam or there is unknown or undisclosed risk" it might be true that you don't understand DeFi to some degree. DeFi isn't a single market, it's millions of micro markets that are acces…

> DeFi isn't a single market, it's millions of micro markets that are accessible through what amounts to a single API.

Millions of micro markets that produce what, exactly? Last time I checked there has to be at least something on the other side of the calculation what a coin is worth.

You think crypto coins magically make people work harder, better, faster, stronger?

That's not how the constraints of the physical world work.

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