4 ms·
> multiplied by the daily volume How does volume correlate to the value of the insurance fund? Isnt value equal to number of tokens * price per token?
by TedDoesntTalk 3y ago
> multiplied by the daily volume
How does volume correlate to the value of the insurance fund? Isnt value equal to number of tokens * price per token?
- gruez 3y agosee: https://news.ycombinator.com/item?id=37805256 https://news.ycombinator.com/item?id=37805256 It basically takes the daily volume, multiplies it by 0.00075% (on average) and adds that to the insurance fund. FTX charges a % fee on every trade, so this is the equivalent of taking a fraction of their fee revenue and putting that into an insurance fund, which seems pretty reasonable.
- jahewson 3y agoNo it doesn’t add it to the insurance fund - there’s no transactions here, it just increments the fake insurance fund variable.
- wolverine876 3y agoIn another company, it wouldn't be impossible that some other function in some other code used that variable for an actual transaction into an actual fund.
- maweaver 3y agoExcept the value isn't saved anywhere, it's just added to the total. And running again would give a new value.
- tomku 3y agoIf you look closely, you may notice that the code that "adds to the insurance fund" doesn't _take_ that money from anywhere. It's just retrieving a number from the database, adding a value to it out of thin air and writing it back. This number was then presented to users as representing the balance of the insurance fund protecting their assets. There was an actual insurance fund and it had a tiny fraction (5% or less) of what this number in the database claimed. The random numbers generated by this code did not represent actual contributions to said insurance fund. They were not, in fact, taking a fraction of their fee revenue and putting it into an insurance fund. They were not doing anything even remotely reasonable, this was a flat-out lie.