dropnerd

we may lose, unless the right people speak up

PoW protocols are just as susceptible to MEV (it's called "miner extractable value").

the result of this is people can only buy virgin galactic when they actually want to buy spacex. seems misguided

> defi is a scam [for] avoiding taxes

using defi to minimize tax burden is neither a scam nor unethical. plenty of people borrow against their houses or stocks.

> nfts are dominated by stolen pieces

most nft volume is made of bored ape yacht club, moonbirds, doodles, and similar properly licensed pieces.

> smart contracts don't replace legal contracts

right, they allow you to transact trustlessly for defi and nfts.

> stablecoins [should require] bank charter

https://www.bloomberg.com/news/articles/2022-04-13/circle-ba...

usdt has always felt like a house of cards. aside from any specific insider knowledge, presumably people got less comfortable holding it after watching ust collapse.

i certainly don't plan to touch it, and won't unless there's some incredible opportunity.

opensea seems to be doing this internally already. is this tool necessary if most exchanges will flag copycats for you?

why does fractional ownership diminish utility?

fractional nfts never took off.

the meta is collector daos.

you can build a museum around counterfeit artworks. why would anyone bother though?

the article does not do a good job of explaining the "hiccup". let me break it down.

> Recently, high-profile hiccups have also deflated investors. In late April, the company behind the Bored Ape Yacht Club, Yuga Labs, auctioned off millions in tokens offering land in a metaverse project they started. Its popularity caused the digital ledger it was being transacted on to nearly shut down. Trading volume also caused transaction fees to rise higher than the actual NFT price in some cases, news reports indicate.

imagine your country club is selling rolex watches for $7000, existing members only, 1 per member, while supplies last. meanwhile, there's a crowd standing outside offering to buy them for $24000. you would expect uber rides to reprice towards $17000. with this context, it is unsurprising that the uber ride would cost more than the watch.

if you wanted to take an uber to your friend's house, you might decide to reschedule, because $17000 is too much. but we wouldn't describe the uber network as "shut down". instead, it is congested.

even from a utilitarian stance, the tradeoff for making the system "safer" is that investors miss opportunities that they see but can't take.

something is wrong when you can only buy virgin galactic, not spacex, because of burdensome regulations. the gap between the haves and have nots widen as you must be an accredited investor to buy the biggest winners this decade.

something is wrong when you can buy penny stocks, but experimental defi products exclude the us market because of regulatory concerns. the latter is much more transparent than the former.

login with eth/ens has more traction than pgp ever will. a win for decentralized identity.

messages on the btc or eth blockchain or arweave are more durable and uncensorable than messages on social media.

international transfers now cost less than 1% instead of 2-5%. since we have stablecoins, there's no crypto volatility. (use usdc or dai, not usdt or ust)

nfts enable collecting generative art, and galleries make the art viewable anywhere with an internet connection. being able to sell the art is what allows artists to make a living.

i wonder if usdc to jeur is more efficient than usd to eur. it could be- many banks are opaque about their conversion rates.

i understand why we might want to dissuade speculative investments, byt why is it the state's role to prevent citizens from speculating?

levered shorts do have a liquidation downside, while any short has an implicit opportunity cost downside over time.

the fact that defi shorting is available is a great improvement. now there's only smart contract risk, which for aave is negligible compared to exchange risk.

> Obviously someone has to get the ICO money.

the value accrues to the network (20 million to 300 billion over the last decade or so), not the dollars that went into the ico sale. the ico dollars are a rounding error.

audit is obviously better, am confident that tether will not be the first to introduce an audited stablecoin

i have been interested in shorting tether since 2017.

if i had gone through with it, i would have paid 5 years of interest for close to no return, including in 2018 when crypto fell 90%.

also, if enough people are levered short, crypto traders could short squeeze you. the price just needs to go up temporarily.

also, there's counterparty risk. is the exchange you're trading on going to stay up if tether goes to 0? depends on which one.

2-4% seems like a bad deal compared to sending usdc, which should be around closer to 0.1-1% after the ukraine exchange takes their usdc to local currency exchange fee. minimal volatility, less fees.

i pay my taxes. i make money providing liquidity between eth and usdc.

when i'm not lp'ing, i see no reason to switch to usd so long as us-based attestations continue to be solid. the opportunity cost of being in usd on coinbase is missing lucrative nft deals.

is 0.03% enough incentive to secure a trustless network?

no one in this thread is promising utopia. i am merely pushing back against assertions of bitcoin being "most equitable".

late entrants add value to networks, and some of that value accrues to early entrants. this is the same for any network. a publicly accessible ico is just as equitable as someone mining btc with their cpu on low difficulty.

once the price of the token goes up, the difference between someone who was invited there early versus found their own way in does not matter to the new adopters. the inequity is felt purely based on the token price difference rather than the security mechanic.

how does the capital cost being mining hardware and electricity rather than a pos token make the system more equitable?

anyone who has run a validator node on a slashing network knows there are real costs and logistics to pos staking.

> MMF liquidated

from your link:

> In 2008 however, the day after Lehman Brothers Holdings Inc. filed for bankruptcy, one money market fund fell to 97 cents after writing off the debt it owned that was issued by Lehman. This created the potential for a bank run in money markets [...] the next day the United States Treasury announced a program to insure the holdings of publicly offered money market funds so that should a covered fund break the buck, investors would be protected to $1 NAV

if the US Treasury insured $ust, luna would have been fine

---

> Why people kept locking ETH in MakerDAO CDPs over and over during the "crypto" bear market, when ETH was in the free fall?

they're long eth. it's not altruistic, it's incentive alignment.

stablecoins don't promise to hold the peg 100%. they promise to be able to repeg in times of severe distress. even some money markets broke the dollar. they had to be bailed out by the government.

what about makerdao makes it reliant on dao goodwill? the incentive to restore the peg is the expectation of profits from liquidating the overextended.

networks derive their value from participation. ex. if the us government held 100% of dollars or berkeley had 100% of internet connected devices or jack had 100% of twitter accounts, these dollars or devices or accounts wouldn't be very useful

they hid the answer to find junior analysts instead of stating the solution outright

https://twitter.com/galois_capital/status/148693794923729715...

startups usually dont have enough resources for a black swan.

but this collapse was entirely predictable- many analysts pointed it out and were mocked by kwon and the self-described LUNAtics.

founders either didn't do enough diligence, or didn't care.

algo stablecoins work fine when they're overcollateralized, like dai.

the industry keeps chasing undercollateralized algo stablecoins because of capital efficiency. jon wu explains to laura shin, worth a watch: https://twitter.com/laurashin/status/1525505300219961344