4 ms·

Why would you loan out your coins and disappear? That makes no sense.

by latchkey 3y ago

Ekaros 3y ago
No I mean take that loan. And then just default on it.
- latchkey 3y ago
  AAVE is collateralized. You can only take a loan out against your existing collateral, up to a ratio point. If you don't maintain your ratio (deposit more collateral or payback your loan), then you're automatically liquidated. The only "default" is against yourself and you're in control of that at all times. https://docs.aave.com/faq/depositing-and-earning https://docs.aave.com/faq/depositing-and-earning https://docs.aave.com/faq/borrowing https://docs.aave.com/faq/borrowing This innovation, along with AMM's, are what first brought actual utility to crypto beyond just buy and hold "number go up".
  - Ekaros 3y ago
    So it is completely besides my point.
    - latchkey 3y ago
      You asked who would loan bitcoin and I gave you an answer. You asked for clarity, I gave you that too. So, what is your point?
      - Ekaros 3y ago
        If you had read the entire message. And put single thought in it you would have noticed "Thus if you are not rich". Meaning that you don't have the coins to provide as collateral. Making your entire example entirely pointless and even fraudulent in the context. So you cannot now take loan for house in bitcoin. At least not using the system you linked. Thus it is entirely useless to even post it in the discussion.
        latchkey 3y ago
        First off, I did read your message and I responded to a very specific portion of it, which in itself implies that I read your message. I really don't understand the aggressive response that sounds like you're attacking me personally. Let me remind you of the guidelines here: https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html Define "rich". Anyone can use AAVE, with any amount of tokens and without asking anyone for permission. If anything, AAVE is more accessible than anything else out there. Especially traditional banking which requires a bank account, something that can be difficult or impossible, to obtain on a global scale. Finally, one can absolutely use AAVE to take a loan for a house. Supply/lend Bitcoin and borrow USDC, take the USDC out as fiat through an offramp such as coinbase.
        Ekaros 3y ago
        So in friendly manner. Please tell me where does person get bitcoin to loan if they do not have it? As that is what is taking loan is. So take scenario I just started working. I have no money. Where do I get bitcoin worth a house, so I can lock it up and loan likely in future bitcoin against it so I can slowly pay it back? Just please explain how does the AAVE work in this specific scenario. I even give you 10% of house worth in bitcoin to start with.
        latchkey 3y ago
        > Please tell me where does person get bitcoin to loan if they do not have it? As that is what is taking loan is. You're mixing up your terms and that makes it very difficult to understand what you're saying... "to loan" != "taking loan". Try to think and speak in terms like: lending and borrowing. When you go to a bank, you use your credit score (and possibly your bank balance) as collateral to borrow funds. With AAVE, you lend what tokens you have and you can then borrow against what you've lent. The only difference is that with AAVE, you don't need a credit score or ask for permission from the bank. Anyone can do it globally 24/7. It is pretty clear from your previous comments in other threads, that you had no idea that this was even a thing because you stopped looking into it in 2017. Times have changed and things have progressed. > I have no money. Where do I get bitcoin worth a house You have no money, so you're not going to get a house, sorry. Your example doesn't work at all and I don't think it is going to be worth responding to.

Why would you loan out your coins and disappear? That makes no sense.

Ekaros 3y ago

No I mean take that loan. And then just default on it.

latchkey 3y ago
AAVE is collateralized. You can only take a loan out against your existing collateral, up to a ratio point. If you don't maintain your ratio (deposit more collateral or payback your loan), then you're automatically liquidated. The only "default" is against yourself and you're in control of that at all times. https://docs.aave.com/faq/depositing-and-earning https://docs.aave.com/faq/depositing-and-earning https://docs.aave.com/faq/borrowing https://docs.aave.com/faq/borrowing This innovation, along with AMM's, are what first brought actual utility to crypto beyond just buy and hold "number go up".
- Ekaros 3y ago
  So it is completely besides my point.
  - latchkey 3y ago
    You asked who would loan bitcoin and I gave you an answer. You asked for clarity, I gave you that too. So, what is your point?
    - Ekaros 3y ago
      If you had read the entire message. And put single thought in it you would have noticed "Thus if you are not rich". Meaning that you don't have the coins to provide as collateral. Making your entire example entirely pointless and even fraudulent in the context. So you cannot now take loan for house in bitcoin. At least not using the system you linked. Thus it is entirely useless to even post it in the discussion.
      - latchkey 3y ago
        First off, I did read your message and I responded to a very specific portion of it, which in itself implies that I read your message. I really don't understand the aggressive response that sounds like you're attacking me personally. Let me remind you of the guidelines here: https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html Define "rich". Anyone can use AAVE, with any amount of tokens and without asking anyone for permission. If anything, AAVE is more accessible than anything else out there. Especially traditional banking which requires a bank account, something that can be difficult or impossible, to obtain on a global scale. Finally, one can absolutely use AAVE to take a loan for a house. Supply/lend Bitcoin and borrow USDC, take the USDC out as fiat through an offramp such as coinbase.
        Ekaros 3y ago
        So in friendly manner. Please tell me where does person get bitcoin to loan if they do not have it? As that is what is taking loan is. So take scenario I just started working. I have no money. Where do I get bitcoin worth a house, so I can lock it up and loan likely in future bitcoin against it so I can slowly pay it back? Just please explain how does the AAVE work in this specific scenario. I even give you 10% of house worth in bitcoin to start with.
        latchkey 3y ago
        > Please tell me where does person get bitcoin to loan if they do not have it? As that is what is taking loan is. You're mixing up your terms and that makes it very difficult to understand what you're saying... "to loan" != "taking loan". Try to think and speak in terms like: lending and borrowing. When you go to a bank, you use your credit score (and possibly your bank balance) as collateral to borrow funds. With AAVE, you lend what tokens you have and you can then borrow against what you've lent. The only difference is that with AAVE, you don't need a credit score or ask for permission from the bank. Anyone can do it globally 24/7. It is pretty clear from your previous comments in other threads, that you had no idea that this was even a thing because you stopped looking into it in 2017. Times have changed and things have progressed. > I have no money. Where do I get bitcoin worth a house You have no money, so you're not going to get a house, sorry. Your example doesn't work at all and I don't think it is going to be worth responding to.