4 ms·

Looks like there are plenty of more DeFi hacks/internal fraud/incompetence https://www.rekt.news/leaderboard/ https://www.rekt.news/leaderboard/ Setting aside

by sireat 5y ago

Looks like there are plenty of more DeFi hacks/internal fraud/incompetence https://www.rekt.news/leaderboard/ https://www.rekt.news/leaderboard/ Setting aside the hacks, what good is DeFi anyhow for those outside crypto space? Seems DeFi currently serve two main functions. 1. Crypto backed loans - main purpose being crypto speculation / possibly some dubious tax benefits 2. Decentralized exchanges - nice for those into crypto but not for Joe Sixpack.

TimJRobinson 5y ago
You could have said similar about the internet in 1990. It was an easily hackable network used only by geeks to share research papers and chat. Technologies start to help small niches and grow over time. The DeFi space could eventually grow to replace any firm that acts as a middleman for digital trades: Robinhood, Wealth front etc.
drdrey 5y ago
If you specifically want to avoid speculation, you could also provide liquidity with stablecoins and collect fees from people trading against your liquidity. For people outside the US, they could also get price exposure to US stocks with things like sAAPL, sGOOG, etc (synthetic assets that represent an underlying equity)
- uh_uh 5y ago
  How do these synthetic assets implement tracking the original asset price? Are the assets still subject to the swings of the general crypto industry (e.g. BTC crashing pulls sGOOG down as well even though Google's real stock appreciates)?
  - drdrey 5y ago
    For a protocol like Synthetix, I believe it uses price feeds provided by Chainlink. In principle, you can always redeem a token like sGOOG for the current price of GOOG on the regular stock market. In practice, there is some risk that an asset could lose its peg. https://docs.synthetix.io/litepaper/#synth-pegging-mechanism https://docs.synthetix.io/litepaper/#synth-pegging-mechanism

4 ms·

Looks like there are plenty of more DeFi hacks/internal fraud/incompetence https://www.rekt.news/leaderboard/ https://www.rekt.news/leaderboard/ Setting aside

by sireat 5y ago

TimJRobinson 5y ago
You could have said similar about the internet in 1990. It was an easily hackable network used only by geeks to share research papers and chat. Technologies start to help small niches and grow over time. The DeFi space could eventually grow to replace any firm that acts as a middleman for digital trades: Robinhood, Wealth front etc.
drdrey 5y ago
If you specifically want to avoid speculation, you could also provide liquidity with stablecoins and collect fees from people trading against your liquidity. For people outside the US, they could also get price exposure to US stocks with things like sAAPL, sGOOG, etc (synthetic assets that represent an underlying equity)
- uh_uh 5y ago
  How do these synthetic assets implement tracking the original asset price? Are the assets still subject to the swings of the general crypto industry (e.g. BTC crashing pulls sGOOG down as well even though Google's real stock appreciates)?
  - drdrey 5y ago
    For a protocol like Synthetix, I believe it uses price feeds provided by Chainlink. In principle, you can always redeem a token like sGOOG for the current price of GOOG on the regular stock market. In practice, there is some risk that an asset could lose its peg. https://docs.synthetix.io/litepaper/#synth-pegging-mechanism https://docs.synthetix.io/litepaper/#synth-pegging-mechanism