YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

Post by MacroChip » Mon, May 23, 2022, 10:29 PM UTC

nivertech wrote: post #410

MacroChip wrote: post #408

Earlier quoted context omitted.

Eh, I can see many people preferring decentralized leverage over centralized i.e. Bitmex. And even if there were other decentralized solutions for leverage back then, they may have liked the security posture and liq parameters of MakerDao specifically. And nowadays (maybe even back then) US citizens cannot use Bitmex.

Correct, but it misses the point. Users need to monitor their open CDPs and add collateral if they are at risk. This has been done to protect users from paying the liquidation penalty fee, which is ~ 13%. Also, do you really need leverage if your ETH's cost basis is 0 to 30c at the time when market price was in the range of $141 to $816 range? It's all rounding error to you, you can basically print DAI out of thin ai…