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Your argument applies equally to fiat finance too: in case of a catastrophe it all goes to zero or turns illiquid. The fact is that billions in locked value ha
by xk_id 3y ago
Your argument applies equally to fiat finance too: in case of a catastrophe it all goes to zero or turns illiquid.
The fact is that billions in locked value have accrued securely over the years in battle tested protocols like curve, aave and yearn.
- grey-area 3y agoWell that level of risk certainly applies to some risky instruments (say CDOs), but I'd say there is far less risk in VWRL say than speculating on the value of a plethora of currencies which are almost purely vehicles for speculation rather than used for everyday transactions. Doesn't matter if you own your keys if nobody wants to buy your Crypto/NFT etc. Re your numbers, I'm afraid I don't trust any of the numbers in this market as none of them are audited.
- xk_id 3y ago> I'm afraid I don't trust any of the numbers You don’t have to. That’s the point. It’s a trustless infrastructure, with public data that anybody can audit. There are countless independent services that are reporting the same numbers, from querying the blockchain data.
- grey-area 3y agoUhm, no, the pricing is mostly provided by exchanges which have been found guilty of wash trades, money printing, front running and every crime in the financial playbook, and most definitely are not audited. So while the blockchains provide public records of transactions, the prices are not set by the blockchains and participants are anonymous enough to be difficult to track.
- everfree 3y agoThe smart-contract exchanges agree on the same prices too, though. They can't lie, because the entire exchange is public record on the blockchain. Uniswap, Cowswap, Kyber, Balancer, they all agree.