Social engineering scam that nearly cost me all of my ETH • Hacker News Board

Re: Social engineering scam that nearly cost me all of my ETH

#421

Post by betwixthewires » Tue, Feb 15, 2022, 10:42 PM UTC

ikt wrote: post #289

betwixthewires wrote: post #264

I can get behind cryptocurrency and stuff, but the idea that anyone can write a contract that says "I get to do what I want with your money" and then build their own custom, one of a kind UI with no way to limit what the user thinks the button does for you to sign such a transaction, it's got to be the biggest, most massive security hole I've ever seen brushed off. You want me to put the title to my house on it? You…

Think of all the scams happening over TCP/IP every day! They built this thing where anyone can pretend to be a bank website? No checks or security? It's laughable. I'm in disbelief. And this is the web?

I never said I expect ethereum or web3 or whatever to be entirely scam free. I said that having the ability to send anyone any transaction and to their eyes have it look like any other sort of interaction they like unless they can read solidity and audit the code themselves is a very very large security hole.

Re: Social engineering scam that nearly cost me all of my ETH

#422

Post by scyclow » Wed, Feb 16, 2022, 5:59 PM UTC

harambae wrote: post #416

scyclow wrote: post #382

Earlier quoted context omitted.

They're basically receipts for putting money into a lending pool. In this case he's lending about $130 million, on which he's earning interest, and can get his money back by redeeming those tokens.

My apologies for being so ignorant on crypto lending, but I'm not even sure where I'd look up the details of how this system works. When Thomas puts that money into the lending pool, what happens if the borrower defaults? Did the borrower put up some non-liquid collateral? Did someone do a background/credit check? Who takes the loss, is it split across the pool? I understand how traditional bank loans work, I'm a lit…

Aave's documentation [1] is pretty good if you're interested in doing a deeper dive. But yeah, it's a collateralized loan where the borrower stakes some ETH.

So the idea is that I can take $100 worth of ETH and put that up as collateral for a $75 loan. And if the value of my collateral drops due to the ETHUSD exchange rate I have to stake more collateral. If I don't (or if the exchange rate moves below a certain point) then my collateral is automatically liquidated at a discount. So in this case, if the value of my collateral falls to $80 the contract will put it up for sale at $75 -- this creates an arbitrage opportunity, so the liquidation will likely happen very quickly.

There are other lending protocols where you can stake other assets (NFTs, other tokens, etc.), but this is my understanding of how Aave works.

[1] https://docs.aave.com/faq/

Re: Social engineering scam that nearly cost me all of my ETH

#423

Post by l33t2328 » Fri, Feb 18, 2022, 5:39 AM UTC

sumedh wrote: post #347

l33t2328 wrote: post #346

Earlier quoted context omitted.

Or they could use a bank. They generally have fine UIs and secure protocols.

and how are you going to pay when the bank closes your account because you broke their terms and conditions. That is where you need decentralized payments.

This simply doesn’t happen at a rate nearly high enough to make griftocurrency a “need”