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A "wash trade" is a trade which generates no value because it represents a swap in kind. For example, if I sell a broad market ETF like VTI and buy a nearly ide

A "wash trade" is a trade which generates no value because it represents a swap in kind. For example, if I sell a broad market ETF like VTI and buy a nearly identical asset at the same price from a different firm, that could be a "wash trade" for tax purposes (simplifying this, but this is basically the gist). In the context of crypto transactions, it's typically referring to trades which are just shifting the same assets through a cycle of accounts without representing meaningful transactions. For a crypto real world example, see: https://mobile.twitter.com/MarcusFongNFT/status/1453911721614004225 https://mobile.twitter.com/MarcusFongNFT/status/145391172161...

flerovium 5y ago
This is not what the paper means. They mean a trade between two colluding parties to give the appearance of a trade.
__alexs 5y ago
I was confused what "dss-flash" was so I looked it up. It's a DAO that enables you to mint infinite DAI (some crappy "stablecoin") for a transaction as long as you pay it back in the same transaction. One of the stated goals of this "feature" is > Exploits requiring a large amount of capital will be found quicker which makes the DeFi space safer overall. Ah yes, intentionally making your own product less secure and more open to abuse, so you can make it more secure. Good work. This is taking testing in production to a whole new level.
- vineyardmike 5y ago
  Like a bug bounty?
  - __alexs 5y ago
    Like a bug bounty where you give attackers an SSH login.
loeg 5y ago
> For example, if I sell a broad market ETF like VTI and buy a nearly identical asset at the same price from a different firm, that could be a "wash trade" for tax purposes (simplifying this, but this is basically the gist). No, you’re describing the wash sale rule, which has to do with which capital losses are tax deductible. It covers pairs of trades up to 30 days apart. A wash trade is a trade with yourself. Both participants in the same trade — not two distinct trades. https://www.investopedia.com/terms/w/washtrading.asp https://www.investopedia.com/terms/w/washtrading.asp

flerovium 5y ago

This is not what the paper means. They mean a trade between two colluding parties to give the appearance of a trade.

__alexs 5y ago

I was confused what "dss-flash" was so I looked it up. It's a DAO that enables you to mint infinite DAI (some crappy "stablecoin") for a transaction as long as you pay it back in the same transaction. One of the stated goals of this "feature" is > Exploits requiring a large amount of capital will be found quicker which makes the DeFi space safer overall. Ah yes, intentionally making your own product less secure and more open to abuse, so you can make it more secure. Good work. This is taking testing in production to a whole new level.

vineyardmike 5y ago
Like a bug bounty?
- __alexs 5y ago
  Like a bug bounty where you give attackers an SSH login.

loeg 5y ago

> For example, if I sell a broad market ETF like VTI and buy a nearly identical asset at the same price from a different firm, that could be a "wash trade" for tax purposes (simplifying this, but this is basically the gist). No, you’re describing the wash sale rule, which has to do with which capital losses are tax deductible. It covers pairs of trades up to 30 days apart. A wash trade is a trade with yourself. Both participants in the same trade — not two distinct trades. https://www.investopedia.com/terms/w/washtrading.asp https://www.investopedia.com/terms/w/washtrading.asp