4 ms·
> They had a reasonable expectation that even if the value was totally lost, they wouldn't have their collateral locked forever. Their investment, yes, but not
by lottin 5y ago
> They had a reasonable expectation that even if the value was totally lost, they wouldn't have their collateral locked forever. Their investment, yes, but not their collateral.
They literally handed their money to a computer program that works outside of human control and cannot be interfered with... which means if something goes wrong no one can intervene and sort it out. This is a risk they took willingly. It's not the first time a computer program malfunctions, and won't be the last.
- meowface 5y ago>which means if something goes wrong no one can intervene and sort it out That's true in general, but in this rare case anyone's USDC can actually theoretically be recovered in full if the price ever manages to get just barely above 0 for a period of time and they pull it out during such a period. If nothing can be done, you have to just take the loss. But here something can actually be done, and it's not like it's infeasible. Just hard.
- perl4ever 5y agoWhy can't someone "paint the tape" as they called it in olden days? If it's possible, what would make it difficult? Or what would make it impossible? I kind of thought that there isn't normally any requirement for any particular volume of trading to set a price.