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Wait, Nexo is your rebuttal here? The stuff the other person was talking about is a successor to Nexo. Firms like Nexo use the yield farming services to make t

Wait, Nexo is your rebuttal here? The stuff the other person was talking about is a successor to Nexo. Firms like Nexo use the yield farming services to make their questionable business plan viable! We will never know exactly what they were doing before but now they use decentralized versions of themselves. Now this inevitably requires you to move the goal post to the critique that customers money is being put in smart contracts, good news there is also smart contract insurance that many people buy. I’m not kidding, 70% serious, that’s it’s own nuanced discussion but requires you to get off of a hill stuck in 2018.

anon9001 6y ago
I mentioned Nexo way earlier up the thread, comparing them to Ally, because they're both custodial retail shops that make their money behind the scenes without the user knowing anything. But it is incredible how much crypto has changed since 2018. Back then I thought, well, maybe some day this will work. Now it's obvious that it will work, and I think adoption will be rapid once it starts happening. I won't be surprised if there's a big wave of crypto stuff on HN/reddit/elsewhere again soon. Just like 2017, but this time it's actually useful for something.
notahacker 6y ago
My rebuttal to the suggestion smart contracts somehow change everything is that smart contracts can't do due diligence on ability to repay in future, and only the sort of sucker that thinks Nexo looks like a legitimate operation would consider due diligence an unnecessary overhead to lending. Smart contracts can't make lending below the cost of capital a sustainable business model either. And whilst not all crypto is a Ponzi, 'yield farming' involving people being rewarded for propping up the value of a token by paying into its smart contract by printing even more of that token is pretty much the definition of a Ponzi. Even someone as heavily invested in smart contracts as Buterin acknowledges as much.

anon9001 6y ago

I mentioned Nexo way earlier up the thread, comparing them to Ally, because they're both custodial retail shops that make their money behind the scenes without the user knowing anything. But it is incredible how much crypto has changed since 2018. Back then I thought, well, maybe some day this will work. Now it's obvious that it will work, and I think adoption will be rapid once it starts happening. I won't be surprised if there's a big wave of crypto stuff on HN/reddit/elsewhere again soon. Just like 2017, but this time it's actually useful for something.

notahacker 6y ago

My rebuttal to the suggestion smart contracts somehow change everything is that smart contracts can't do due diligence on ability to repay in future, and only the sort of sucker that thinks Nexo looks like a legitimate operation would consider due diligence an unnecessary overhead to lending. Smart contracts can't make lending below the cost of capital a sustainable business model either. And whilst not all crypto is a Ponzi, 'yield farming' involving people being rewarded for propping up the value of a token by paying into its smart contract by printing even more of that token is pretty much the definition of a Ponzi. Even someone as heavily invested in smart contracts as Buterin acknowledges as much.