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The value of WETH going to zero could cause a near system wide collapse. It is being used as collateral for a staggering number of loans. Bridges in the collo

by swalsh 5y ago

The value of WETH going to zero could cause a near system wide collapse. It is being used as collateral for a staggering number of loans. Bridges in the colloquial way of saying it, are too big to fail. I wonder if network insiders had been prepared for the eventuality of something like this happening, and were just executing a playbook.

BeFlatXIII 5y ago
How much impact would a total cryptocurrency collapse have on the outside economy?
- zepto 5y ago
  Probably a nice uptick
  - faeyanpiraat 5y ago
    Or millions of working people would suddenly be able to afford a gaming GPU and would disappear into imaginary worlds for a couple of weeks.
- fuzzer37 5y ago
  Nearly zero.
- swalsh 5y ago
  Crypto (and more so Solona) has an extreme trade deficit, it's importing way more capital then it's currently exporting (the primary export today is blockspace, I think as DAO's start running SASS services, that will increase the exports). The impact today would be nearly zero. As the deficit evens out, that might change. The local crypto economy is pretty young (it's virtually brand new). As it expands these capital flows will probably change.
- X6S1x6Okd1st 5y ago
  I haven't read anything concrete that shows a clear contagion risk, but https://twitter.com/angela_walch https://twitter.com/angela_walch is one of the people in the space to follow that is talking about it
thebean11 5y ago
WETH (on Ethereum itself) is totally different. It's a pretty simple contract, doesn't require code on other blockchains or offchain code, and there are no Ethereum accounts with "special permissions" so the attack surface is much much smaller. Contract code if anybody is curious. It's less than 100 lines of Solidity, easy to read even if unfamiliar with the language: https://etherscan.io/address/0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2#code https://etherscan.io/address/0xc02aaa39b223fe8d0a0e5c4f27ead...
- swalsh 5y ago
  Sure, thought that was implied. WETH on Solona is not the same thing obviously.

by swalsh 5y ago

BeFlatXIII 5y ago

How much impact would a total cryptocurrency collapse have on the outside economy?

zepto 5y ago
Probably a nice uptick
- faeyanpiraat 5y ago
  Or millions of working people would suddenly be able to afford a gaming GPU and would disappear into imaginary worlds for a couple of weeks.
fuzzer37 5y ago
Nearly zero.
swalsh 5y ago
Crypto (and more so Solona) has an extreme trade deficit, it's importing way more capital then it's currently exporting (the primary export today is blockspace, I think as DAO's start running SASS services, that will increase the exports). The impact today would be nearly zero. As the deficit evens out, that might change. The local crypto economy is pretty young (it's virtually brand new). As it expands these capital flows will probably change.
X6S1x6Okd1st 5y ago
I haven't read anything concrete that shows a clear contagion risk, but https://twitter.com/angela_walch https://twitter.com/angela_walch is one of the people in the space to follow that is talking about it

thebean11 5y ago

WETH (on Ethereum itself) is totally different. It's a pretty simple contract, doesn't require code on other blockchains or offchain code, and there are no Ethereum accounts with "special permissions" so the attack surface is much much smaller. Contract code if anybody is curious. It's less than 100 lines of Solidity, easy to read even if unfamiliar with the language: https://etherscan.io/address/0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2#code https://etherscan.io/address/0xc02aaa39b223fe8d0a0e5c4f27ead...

swalsh 5y ago
Sure, thought that was implied. WETH on Solona is not the same thing obviously.