3 ms·

>How would blockchain be used to fix this? All of the things that are being reported on this situation would not have been possible on a DEX. Decentralized ex

by dibt 4y ago

>How would blockchain be used to fix this? All of the things that are being reported on this situation would not have been possible on a DEX. Decentralized exchanges (DEX) exist on-chain. They incorporate automatic market making (AMM), not a third-party market maker with an association to the exchange. The DEX does not have custody of user funds, and it would be impossible to hide a multi-billion dollar hole in an exchange's balance sheet.

kzzzznot 4y ago
Do they work in practice?
- dibt 4y ago
  Yes. https://uniswap.org/ https://uniswap.org/ and https://curve.fi/ https://curve.fi/ are the most popular, and have similar 24 hour volume to established exchanges like Coinbase.
- mikeyouse 4y ago
  Kind of.. Solend is a major one that's currently falling over.. and apparently just disappeared $6M worth of users' assets; https://twitter.com/patio11/status/1590725993324777472 https://twitter.com/patio11/status/1590725993324777472
  - dibt 4y ago
    Solend is not a DEX. It is for borrowing against assets. https://aave.com/ https://aave.com/ is a better lending protocol. Solend has a questionable history, and is closely associated with FTX, which is why the SOL token is down so much. Patrick gives a good description of the problems in that tweet thread, and why it is affected.