4 ms·

Don't know about USDC, but USDT almost instantly locked the funds, making them unspendable.

cwkoss 5y ago
Interesting. Do you know the mechanics of how funds get locked? Are they prevented from being transferred on-chain or only from being removed at the USD-USDT edges?
- capnorange 5y ago
  the smart contract has a blacklist flag that can be activated by the Tether, this prevents on-chain transfers. https://etherscan.io/token/0xdac17f958d2ee523a2206206994597c13d831ec7#readContract https://etherscan.io/token/0xdac17f958d2ee523a2206206994597c... The USDT will be burned and the USD released to the rightful owner after law/legal approval -- https://twitter.com/paoloardoino/status/1425188386034311168 https://twitter.com/paoloardoino/status/1425188386034311168
  - Gaelan 5y ago
    Wait, so they have the ability to arbitrarily blacklist people from transferring tethers? At this point, is Tether anything other than a weird bank?
    - Anunayj 5y ago
      Yes, Tether is nothing more than a weird bank. USDT is backed by real currency (or atleast Tether claims so). And is equivalent of the treasury giving you a bill and promising to pay you, just on a pollution causing blockchain
    - secondaryacct 5y ago
      But see how nice having a blacklist is (which you seem to say is the core business of banks, when in fact it is to provide massive amount of capital as loans at a cost or create yield-producing aggregated products - which can work with any currency, crypto or not, and which Tether barely fits the definition of). I d propose every chain to have a blacklist mechanism, temporary if you want, with a voting mechanism to remove innocents. You cant facebook your way ("we re just a platform") out of financial rules or you ll just end up rewarding thieves while benefitting innocents very little.
    - capnorange 5y ago
      It is more like a regular bank than anything else. A bank that uses a different transport network. That's why decentralized stable coins like DAI and others exist :)
    - martinko 5y ago
      To be fair, they never claimed to be anything else, just a conduit to allow seamless transfers of usd value on the blockchain, while they hold the actual funds (applies to all non-algorithmic stables).
yonixw 5y ago
Does this mean they are lost forever? like burning real bills? Or is there a mechanism to repay the original owners?
- secondaryacct 5y ago
  Code is law, law was obeyed, the original owners dont matter anymore. Currency of the future.
- martinko 5y ago
  No, the real bills that back the money should still be sitting in the bank (although some people would question this, given that we are talking about tether. Only the token representation has been frozen.

Interesting. Do you know the mechanics of how funds get locked? Are they prevented from being transferred on-chain or only from being removed at the USD-USDT edges?

capnorange 5y ago
the smart contract has a blacklist flag that can be activated by the Tether, this prevents on-chain transfers. https://etherscan.io/token/0xdac17f958d2ee523a2206206994597c13d831ec7#readContract https://etherscan.io/token/0xdac17f958d2ee523a2206206994597c... The USDT will be burned and the USD released to the rightful owner after law/legal approval -- https://twitter.com/paoloardoino/status/1425188386034311168 https://twitter.com/paoloardoino/status/1425188386034311168
- Gaelan 5y ago
  Wait, so they have the ability to arbitrarily blacklist people from transferring tethers? At this point, is Tether anything other than a weird bank?
  - Anunayj 5y ago
    Yes, Tether is nothing more than a weird bank. USDT is backed by real currency (or atleast Tether claims so). And is equivalent of the treasury giving you a bill and promising to pay you, just on a pollution causing blockchain
  - secondaryacct 5y ago
    But see how nice having a blacklist is (which you seem to say is the core business of banks, when in fact it is to provide massive amount of capital as loans at a cost or create yield-producing aggregated products - which can work with any currency, crypto or not, and which Tether barely fits the definition of). I d propose every chain to have a blacklist mechanism, temporary if you want, with a voting mechanism to remove innocents. You cant facebook your way ("we re just a platform") out of financial rules or you ll just end up rewarding thieves while benefitting innocents very little.
  - capnorange 5y ago
    It is more like a regular bank than anything else. A bank that uses a different transport network. That's why decentralized stable coins like DAI and others exist :)
  - martinko 5y ago
    To be fair, they never claimed to be anything else, just a conduit to allow seamless transfers of usd value on the blockchain, while they hold the actual funds (applies to all non-algorithmic stables).

yonixw 5y ago

Does this mean they are lost forever? like burning real bills? Or is there a mechanism to repay the original owners?

secondaryacct 5y ago
Code is law, law was obeyed, the original owners dont matter anymore. Currency of the future.
martinko 5y ago
No, the real bills that back the money should still be sitting in the bank (although some people would question this, given that we are talking about tether. Only the token representation has been frozen.