Solend seized $170M of user funds • Hacker News Board

Re: Solend seized $170M of user funds

#71

Post by smoe » Sun, Jun 19, 2022, 9:00 PM UTC

dang wrote: post #60

flaque wrote: post #34

Earlier quoted context omitted.

A better title would be "Solend seized $170MM of user funds". Claiming it was done by "Solana" is incorrect. Claiming it's to prevent a drop in Solana's price is clickbait & editorializing.

Ok, we've changed the title to that. (Submitted title was "Solend just seized $170MM of user funds to prevent a decrease in Solana's price".) If someone suggests a better title (i.e. more accurate and neutral, preferably using representative language from the submitted article), we can change it again. And if there's a better URL than the Reddit thread, we can change that too.

I think a better url would be the governance proposal itself

https://realms.today/dao/7sf3tcWm58vhtkJMwuw2P3T6UBX7UE5VKxP...

Linked from this tweet by solend

https://twitter.com/solendprotocol/status/153844135044142284...

Re: Solend seized $170M of user funds

#72

Post by diob » Sun, Jun 19, 2022, 9:01 PM UTC

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…

This is a common life viewpoint in general.

Bad things happen to other people because they did something to deserve it. Good things happen to them because of luck.

Good things happen to me because I deserve it. Bad things happen to me because of bad luck.

Re: Solend seized $170M of user funds

#73

Post by [deleted] » Sun, Jun 19, 2022, 9:03 PM UTC

baq wrote: post #5

defi at its best. zero upside of centralized finance with all the downsides, after all.

[deleted]

Re: Solend seized $170M of user funds

#74

Post by ATsch » Sun, Jun 19, 2022, 9:06 PM UTC

nrmitchi wrote: post #11

> The proposal succeeded hours after it was proposed, with one whale providing 1 million votes out of the 1.15 million votes in favor. Decentralized my ass

Hey, at least we have a good example of what "voting with your wallet" actually looks like if brought to it's logical conclusion.

Re: Solend seized $170M of user funds

#75

Post by melony » Sun, Jun 19, 2022, 9:07 PM UTC

ChuckMcM wrote: post #10

And @patio11's take : https://twitter.com/patio11/status/1538601104098852865 which is illuminating as well. The whole "crypto is speed running through the finance playbook" theme is fascinating to me.

So what is the downside of crypto? All the furor seems to be about how the whale's funds were seized. But there is no evidence to the contrary that this won't happen in day to day Wall Street banking.

From patio11's

> When we say “crypto is speedrunning learning what finance already knows” sometimes it is about attacks but sometimes it is about quotidian topics like “Can you adversarially blow your clients out of trades which you think imperil your firm or other clients?”

Answer in traditional finance by the way: yes you absolutely can. Your lawyers have long since thought of that and put that language in your contracts, making it very explicit that if you trigger it you don’t need a vote on Discord to do so.

There is nothing that proves that traditional finance is any better than crypto. Though I do not recall the British government arresting Soros when he broke the pound.

Re: Solend seized $170M of user funds

#76

Post by cowtools » Sun, Jun 19, 2022, 9:10 PM UTC

diob wrote: post #72

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…

This is a common life viewpoint in general. Bad things happen to other people because they did something to deserve it. Good things happen to them because of luck. Good things happen to me because I deserve it. Bad things happen to me because of bad luck.

We're not talking about people getting struck by lightning here, we're talking about an intentionally built and voluntarily used computer system. If you don't understand the risk, don't invest.

Re: Solend seized $170M of user funds

#77

Post by babyshake » Sun, Jun 19, 2022, 9:12 PM UTC

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.

Would these regulations prevent something like offshore merchants selling goods, perhaps gold bars or something, for crypto and converting into fiat?

Re: Solend seized $170M of user funds

#78

Post by yunohn » Sun, Jun 19, 2022, 9:12 PM UTC

nrmitchi wrote: post #11

> The proposal succeeded hours after it was proposed, with one whale providing 1 million votes out of the 1.15 million votes in favor. Decentralized my ass

Let me get this straight. They used the majority voting power of a DAO whale, to seize the funds of a user whale?

Irony at its finest.

Re: Solend seized $170M of user funds

#79

Post by diob » Sun, Jun 19, 2022, 9:15 PM UTC

cowtools wrote: post #76

diob wrote: post #72

Earlier quoted context omitted.

This is a common life viewpoint in general. Bad things happen to other people because they did something to deserve it. Good things happen to them because of luck. Good things happen to me because I deserve it. Bad things happen to me because of bad luck.

We're not talking about people getting struck by lightning here, we're talking about an intentionally built and voluntarily used computer system. If you don't understand the risk, don't invest.

No post body was provided.

Re: Solend seized $170M of user funds

#80

Post by rglover » Sun, Jun 19, 2022, 9:16 PM UTC

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…

They say "do your own research" and then when you do and have questions about difficult to conceive (or seemingly irrational things) they belittle you, attack you, and—at least on Twitter—reply with snarky memes. As soon as I started investigating Ethereum, ERC-20 tokens, etc. at a technical level, I realized it was a house of cards of immense proportions.

The place that didn't happen? Bitcoin. There's not a lot of esotericism around Bitcoin (skim 1-2 books, listen to a couple of talks on YouTube, and generally speaking you "get it"). If you're genuinely interested, people are more than happy to help you and set you on the right path.