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> What is the "risky investment" here? Well, you tell me. Where do the profits come from? > In the case of crypto, the lender is a smart contract. That doe
by lottin 6y ago
> What is the "risky investment" here?
Well, you tell me. Where do the profits come from?
> In the case of crypto, the lender is a smart contract.
That doesn't make sense. The smart contract is a contract, that is, an agreement between two or more parties. An agreement is not a lender. The lender is one of the parties.
- ArtTimeInvestor 6y ago> The lender is one of the parties The "parties" do not know each other. And it does not matter who put the contract up, who put assets in and who borrowed assets from the contract. Because everything is in the smart contract. Even the assets. Are you aware that Ethereum contracts hold assets?
- lottin 6y agoLet's pretend the lender is "smart contract" (even though it's not). You lend X to the smart contract, and after a while the smart contract pays you X+y. Where does the y come from?
- ArtTimeInvestor 6y ago> even though it's not We should sort this out first. It does not make sense to discuss higher level concepts if we disagree on lower level concepts.