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Instead of shorting it, you can do this: 1. Lock up your USD to USDC (get some ETH for gas) 2. Go to https://app.compound.finance/ https://app.compound.financ

Instead of shorting it, you can do this: 1. Lock up your USD to USDC (get some ETH for gas) 2. Go to https://app.compound.finance/ https://app.compound.finance/ 3. Deposit the USDC as collateral 4. Borrow USDT (Tether) 5. Sell the borrowed USDT to USDC 6. Wait until USDT implodes to $0 If USDT implodes to $0 then you'll have nothing to pay back. You can even deposit the USDC to, say, Yearn and cancel out your interest expense. Of course, I do not expect USDT imploding anytime soon, so don't do this. Although it's often the preferred stablecoin to borrow because when it does implode, you will be lucky (assuming it goes under the peg).

arcticbull 6y ago
You're assuming if the wheels fall off Circle will be around to pay you back.
- bouncycastle 6y ago
  Which part of "don't do this" you didn't understand?
  - arcticbull 6y ago
    "Of course, I do not expect USDT imploding anytime soon, so don't do this" doesn't suggest anything about counterparty risk with USDC.
    - bouncycastle 6y ago
      USDC is an example, it's not necessary that you use USDC, there are a few other currencies that can be used for collateral and swapped in to while you wait. Let's be clear: "Do not do this" means do not do this in whatever variation.
- gomox 6y ago
  Why wouldn't they be?
- T-A 6y ago
  USDC is audited monthly to verify that it's backed by real dollars. The reports are public: https://www.centre.io/usdc-transparency https://www.centre.io/usdc-transparency
  - arcticbull 6y ago
    Totally, just a minor quibble, they don't have audits, they have attestations. That's not the same thing, it's much less detailed. I'm not particularly worried about the existence of their backing assets, however, it's just worth noting. I was referring to the Circle entity in the event of a wheels-come-off situation.
vidarh 6y ago
> 4. Borrow USDT (Tether) > 5. Sell the borrowed USDT to USDC How is this not shorting? Except DIY instead of a broker hiding the borrowing for you.
- byecomputer 6y ago
  Yeah they literally described the process of shorting a stock. Which, to me, is the best alternative to shorting a stock that one could ask for.
- bouncycastle 6y ago
  Yes, good point.
T-A 6y ago
USDC is now natively on Stellar, so no need to pay Ethereum's transaction fees: https://stellar.org/usdc https://stellar.org/usdc
- bouncycastle 6y ago
  But there is no lending/borrowing market or a decentralized exchange on Stellar. Besides, when you deposit USDC to Compound Finance you will earn interest plus COMP tokens that can cover your gas fees. Anyways, there may be several competing options coming in the future, but Stellar is just not it.
  - T-A 6y ago
    > But there is no lending/borrowing market or a decentralized exchange on Stellar. I can't imagine where you got that idea. https://developers.stellar.org/docs/glossary/decentralized-exchange/ https://developers.stellar.org/docs/glossary/decentralized-e... https://www.lumenauts.com/explainers/stellar-decentralized-exchange https://www.lumenauts.com/explainers/stellar-decentralized-e... Here are a few clients: https://www.stellarx.com/ https://www.stellarx.com/ https://stellarterm.com/ https://stellarterm.com/ https://stellarport.io/exchange https://stellarport.io/exchange https://interstellar.exchange https://interstellar.exchange https://lumenswap.io/ https://lumenswap.io/ You can lend and borrow just fine on the Stellar network. Here for instance is Celsius' current rate on Stellar Lumens: https://celsius.network/earn-rewards-on-your-crypto/ https://celsius.network/earn-rewards-on-your-crypto/ > Anyways, there may be several competing options coming in the future, but Stellar is just not it. Passing judgment is best done after informing oneself.
    - bouncycastle 6y ago
      It looks like the game is rigged on Stellar. All of the above exchange links that I've visited required account registration and login, which means that they are not decentralized. For the celsius, you have to download an app on your phone. Ewwww. Whatever. Claiming to be decentralized and then requiring signup is dishonest. It looks like there is not not much liquidity. Also, the only type of exchange supported is "Limit Order", which is also cumbersome to use on a blockchain, and you would probably prefer Automated Market Maker (AMM) type exchanges once you experience them. (You can perform all the steps I've outlined in a single transaction for example) Also, it looks like that all the assets on stellar are custodial. There are no non-custodial stablecoins for example.
piracy1 6y ago
Oh, this is perfect, I'm going to do this with 100k. Also, yeah it is shorting, but it's honestly less convoluted than how I have to do it on Kraken. + I get profits off staking. Edit, did it with $500 as a test, I am arbitraging 0.5% as I took the tether I borrowed, turned it. into USDC and staked it. I am getting paid 0.5% to short Tether :O

arcticbull 6y ago

You're assuming if the wheels fall off Circle will be around to pay you back.

bouncycastle 6y ago
Which part of "don't do this" you didn't understand?
- arcticbull 6y ago
  "Of course, I do not expect USDT imploding anytime soon, so don't do this" doesn't suggest anything about counterparty risk with USDC.
  - bouncycastle 6y ago
    USDC is an example, it's not necessary that you use USDC, there are a few other currencies that can be used for collateral and swapped in to while you wait. Let's be clear: "Do not do this" means do not do this in whatever variation.
gomox 6y ago
Why wouldn't they be?
T-A 6y ago
USDC is audited monthly to verify that it's backed by real dollars. The reports are public: https://www.centre.io/usdc-transparency https://www.centre.io/usdc-transparency
- arcticbull 6y ago
  Totally, just a minor quibble, they don't have audits, they have attestations. That's not the same thing, it's much less detailed. I'm not particularly worried about the existence of their backing assets, however, it's just worth noting. I was referring to the Circle entity in the event of a wheels-come-off situation.

vidarh 6y ago

> 4. Borrow USDT (Tether) > 5. Sell the borrowed USDT to USDC How is this not shorting? Except DIY instead of a broker hiding the borrowing for you.

byecomputer 6y ago
Yeah they literally described the process of shorting a stock. Which, to me, is the best alternative to shorting a stock that one could ask for.
bouncycastle 6y ago
Yes, good point.

T-A 6y ago

USDC is now natively on Stellar, so no need to pay Ethereum's transaction fees: https://stellar.org/usdc https://stellar.org/usdc

bouncycastle 6y ago
But there is no lending/borrowing market or a decentralized exchange on Stellar. Besides, when you deposit USDC to Compound Finance you will earn interest plus COMP tokens that can cover your gas fees. Anyways, there may be several competing options coming in the future, but Stellar is just not it.
- T-A 6y ago
  > But there is no lending/borrowing market or a decentralized exchange on Stellar. I can't imagine where you got that idea. https://developers.stellar.org/docs/glossary/decentralized-exchange/ https://developers.stellar.org/docs/glossary/decentralized-e... https://www.lumenauts.com/explainers/stellar-decentralized-exchange https://www.lumenauts.com/explainers/stellar-decentralized-e... Here are a few clients: https://www.stellarx.com/ https://www.stellarx.com/ https://stellarterm.com/ https://stellarterm.com/ https://stellarport.io/exchange https://stellarport.io/exchange https://interstellar.exchange https://interstellar.exchange https://lumenswap.io/ https://lumenswap.io/ You can lend and borrow just fine on the Stellar network. Here for instance is Celsius' current rate on Stellar Lumens: https://celsius.network/earn-rewards-on-your-crypto/ https://celsius.network/earn-rewards-on-your-crypto/ > Anyways, there may be several competing options coming in the future, but Stellar is just not it. Passing judgment is best done after informing oneself.
  - bouncycastle 6y ago
    It looks like the game is rigged on Stellar. All of the above exchange links that I've visited required account registration and login, which means that they are not decentralized. For the celsius, you have to download an app on your phone. Ewwww. Whatever. Claiming to be decentralized and then requiring signup is dishonest. It looks like there is not not much liquidity. Also, the only type of exchange supported is "Limit Order", which is also cumbersome to use on a blockchain, and you would probably prefer Automated Market Maker (AMM) type exchanges once you experience them. (You can perform all the steps I've outlined in a single transaction for example) Also, it looks like that all the assets on stellar are custodial. There are no non-custodial stablecoins for example.

piracy1 6y ago

Oh, this is perfect, I'm going to do this with 100k. Also, yeah it is shorting, but it's honestly less convoluted than how I have to do it on Kraken. + I get profits off staking. Edit, did it with $500 as a test, I am arbitraging 0.5% as I took the tether I borrowed, turned it. into USDC and staked it. I am getting paid 0.5% to short Tether :O