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>Earning interest He's talking about "DeFi" ("distributed finance") - the current craze in the Ethereum world. Various groups are offering significant interest
by ppf 7y ago
>Earning interest
He's talking about "DeFi" ("distributed finance") - the current craze in the Ethereum world. Various groups are offering significant interest rates for loaning out your Eth. It's hard to see how it's not another speculation bubble waiting to burst.
- microtherion 7y agoI suppose calling this “Probabilistic Online-Zone Investment” aka “POnZI” would have been a bit on the nose.
- tuesdayrain 7y agoJeez, the quality of HN comments these days is not what it used to be.
- leppr 7y agoDeFi loans are typically very over-collaterized. Due to this, they represent way less of a risk to the economy than traditional credit.
- ppf 7y agoHow much collateral do you need for an asset that is as volatile as a cryptocurrency?
- xur17 7y agoI believe makerdao sets it at 150%. If it ever drops under that amount they auction off the underlying asset on the the open market.
- xur17 7y agoI've looked into using these a few times, and I'm honestly more worried about smart contract bugs.