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Solend seized $170M of user funds

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Re: Solend seized $170M of user funds

#61

Post by cowtools »

rvz wrote: post #58
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…

The pro-crypto folks have created the delusion that 'crypto will replace all modern finance' and they will quickly realise that regulations will wipe out the majority of tokens and projects unable to comply with them; and a remaining few of them existing and surviving. It also means the anti-crypto folks will also realise that destroying 'all of them' is another delusion that activists like the free software foundati…

>The undeniable fact is that regulations will be put in place for crypto

why is this so undeniable? I would think well-implemented cryptocurrencies would be fairly regulation resistant

Re: Solend seized $170M of user funds

#62

Post by psKama »

renewiltord wrote: post #26
wronglebowski wrote: post #12

How did the "whale" have so much invested in the market but such little voting rights?

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 which further triggers chain liquidation which causes the price even to go further down and most likely cause Solend to shut down creating more and more panic sell. 4) Make crazy profit.

Solend to call themselves "decentralized" now is just a joke.

Re: Solend seized $170M of user funds

#63

Post by jasonwatkinspdx »

granddemolisher wrote: post #40
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…

I find it as absurd as anyone else. The field is unfortunately rifled with people who are shills and religious believers. I have talked to a few VCs and technical people drilling down into the tech - I had better arguments than them for why someone would use the projects they funded or created.

Just last night the owner of the neighborhood convenience store was asking me to explain NFTs, as one of his other regulars was hyping them up earlier that day. This man has run his business for decades, understands commercial banking services, etc. I could not for the life of me fully convince them that with NFT's, "there's no there there." Like these things have been so hyped by so many people close enough to the main stream that the fomo style "those rich guys have to be onto something smart with this" assumption is incredibly hard to disprove. The closest I got was using beanie babies as an example.

Re: Solend seized $170M of user funds

#64

Post by agumonkey »

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…

Research is fuzzy word in this bubble. I've seen people crafting their own tiny metric: twitter liveness, github activity, size of source code, website quality. White paper reading (I skimmed through a few, it felt like marketing speach most of the time). It only feels solid for newbs who never designed a system or seen math above HS level.

Re: Solend seized $170M of user funds

#65

Post by wmf »

flaque wrote: post #30
55555 wrote: post #19

Earlier quoted context omitted.

Sorry, I misattributed this in a big way. > nor was the purpose specifically to protect Solana's price. I think it was. What else would the purpose be? Note that I think the true purpose of "preventing Solana network downtime" would be to protect the price. They're trying to avoid cascading liquidations down to zero, because everyone involved in the governance is holding substantial amounts of Solana. I think letting…

> What else would the purpose be? I would suspect to protect Solend itself. "Preventing Solana network downtime" feels more like an appeal to Solana people to vote on their proposal rather than ignoring it. > Note that I think the true purpose of "preventing Solana network downtime" would be to protect the price. It is possible, and even the norm among people building things, to not think of everything in terms of "p…

That's because Github is useful. The only purpose of crypto is to increase in price, so protecting the price is protecting the system.

Re: Solend seized $170M of user funds

#66

Post by ReptileMan »

cowtools wrote: post #61
rvz wrote: post #58

Earlier quoted context omitted.

The pro-crypto folks have created the delusion that 'crypto will replace all modern finance' and they will quickly realise that regulations will wipe out the majority of tokens and projects unable to comply with them; and a remaining few of them existing and surviving. It also means the anti-crypto folks will also realise that destroying 'all of them' is another delusion that activists like the free software foundati…

>The undeniable fact is that regulations will be put in place for crypto why is this so undeniable? I would think well-implemented cryptocurrencies would be fairly regulation resistant

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.

Re: Solend seized $170M of user funds

#67

Post by iJohnDoe »

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.

No, it needs to be better in every way. If it’s not, then what’s the fucking point? Popularity and a better replacement are two different things.

Re: Solend seized $170M of user funds

#68

Post by tharne »

foepys wrote: post #49

This is a fight between whales, nothing more. If the average "retail" coin holder thinks they have any influence, they are dead wrong. This is the cryptocurrency reality where the small man is overpowered by the bourgeoisie who own so much more capital that they only need to fear each other.

> This is the cryptocurrency reality where the small man is overpowered by the bourgeoisie who own so much more capital that they only need to fear each other.

How is this any different than the traditional financial system? Remember 2008, where bankers were reckless and the government bailed them out, while regular people who were reckless got f--ked?

Re: Solend seized $170M of user funds

#70

Post by cowtools »

ReptileMan wrote: post #66
cowtools wrote: post #61

Earlier quoted context omitted.

>The undeniable fact is that regulations will be put in place for crypto why is this so undeniable? I would think well-implemented cryptocurrencies would be fairly regulation resistant

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]

[0] https://monerica.com/

[1] https://localmonero.co/

[2] https://unstoppableswap.net/

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