5 ms·

Hmm, you earn 6% APR on BUSD with Binance Earn. You'd buy 1BUSD with 1USD expecting to withdraw 1.06USD in one year. You hold it because you have a reasonable

by neffo 4y ago

Hmm, you earn 6% APR on BUSD with Binance Earn. You'd buy 1BUSD with 1USD expecting to withdraw 1.06USD in one year. You hold it because you have a reasonable expectation of profits.

LatteLazy 4y ago
But then the Earn program is the security right? Just holding BUSD gains me nothing, it just sits there. I've seen people argue that Eth is now a security IF you have 32ETH, because you can stake it (stake it yourself, not via a counterparties program) since it moved to Proof of Stake. But that's without involving a counterparty and their program and them defining the return etc, you can just do it.
- neffo 4y ago
  No counterparty? The Eth network is the counterparty, you're buying a stake in the network, you are diluting everyone's control. And earning a reward.
  - yokem55 4y ago
    One does not automatically earn a return just by staking eth. A validator with a node has to be operated which performs the validation and block proposal functions, and money is only made when those activities are performed. The eth that is deposited is not an investment - it is a bond for good and honest performance of the work. Now, there are services that perform those activities on behalf of others, and some of those arrangements could possibly be labeled as securities, but on it's own, at the base layer, participating in eth's proof of stake system is not a security.
  - LatteLazy 4y ago
    Personally, I really dislike the idea of a decentralised counterparty but for eth I can see the argument at least. Of course, you could make the same argument about mining gold: it's a security because you are taking profit by diluting the overall global gold supply network... But for BUSD, none of this applies: you cannot mine it, control is absolutely with Paxos, and is undiluted and the price is (in theory) fixed.

5 ms·

Hmm, you earn 6% APR on BUSD with Binance Earn. You'd buy 1BUSD with 1USD expecting to withdraw 1.06USD in one year. You hold it because you have a reasonable

by neffo 4y ago

Hmm, you earn 6% APR on BUSD with Binance Earn. You'd buy 1BUSD with 1USD expecting to withdraw 1.06USD in one year. You hold it because you have a reasonable expectation of profits.

LatteLazy 4y ago
But then the Earn program is the security right? Just holding BUSD gains me nothing, it just sits there. I've seen people argue that Eth is now a security IF you have 32ETH, because you can stake it (stake it yourself, not via a counterparties program) since it moved to Proof of Stake. But that's without involving a counterparty and their program and them defining the return etc, you can just do it.
- neffo 4y ago
  No counterparty? The Eth network is the counterparty, you're buying a stake in the network, you are diluting everyone's control. And earning a reward.
  - yokem55 4y ago
    One does not automatically earn a return just by staking eth. A validator with a node has to be operated which performs the validation and block proposal functions, and money is only made when those activities are performed. The eth that is deposited is not an investment - it is a bond for good and honest performance of the work. Now, there are services that perform those activities on behalf of others, and some of those arrangements could possibly be labeled as securities, but on it's own, at the base layer, participating in eth's proof of stake system is not a security.
  - LatteLazy 4y ago
    Personally, I really dislike the idea of a decentralised counterparty but for eth I can see the argument at least. Of course, you could make the same argument about mining gold: it's a security because you are taking profit by diluting the overall global gold supply network... But for BUSD, none of this applies: you cannot mine it, control is absolutely with Paxos, and is undiluted and the price is (in theory) fixed.