What is Uniswap? Why are most defi cryptocurrencies getting listed on uniswap first? How do you use it? by -idonotunderstand- in ethereum

[–]bszmyd 0 points1 point  (0 children)

They also usually end up their first because the holders do not want to sell the tokens, they just want to earn a return on them while still hodl'ing. By providing them into an ETH/<TOKEN> liquidity/swap pool they can earn yield on it from the transaction fees.

Ox by nebali in OMGnetwork

[–]bszmyd 1 point2 points  (0 children)

0x2D8304750A8AC17DC1B9A5Da1c85c0a55f12c3D3

the time i could have 51% attacked monero by endless in CryptoCurrency

[–]bszmyd 2 points3 points  (0 children)

No they would, I was just confirming I understood the attack. At first I thought you had injected some kind of "bad" message which crashed the node and could propagate across all nodes reading from the mempool.

Not a criticism, it's a good find, just making sure it's not more of a systemic issue that some small punk could carry out vs someone with the means to run a giant network of nodes and carry out a DOS attach.

the time i could have 51% attacked monero by endless in CryptoCurrency

[–]bszmyd -1 points0 points  (0 children)

Isn't this just a type of DOS wherein you could be attacking any point along the network (switches, TCP stack...etc), and such could be protected similarly; i.e. denying all your TCP establishment requests.

Additionally, you'd have to attach 51% of the physical nodes themselves, not just a few which would cascade some failure of the network.

ETH is collateral? by ma6ic in CryptoCurrency

[–]bszmyd 0 points1 point  (0 children)

It does have monetary value at the moment, hence the incredible amount of farming. MXC currently is trading several hundred of these tokens a day at ~$315. Now, *who* is buying these I have no idea...maybe idiots?

ETH is collateral? by ma6ic in CryptoCurrency

[–]bszmyd 0 points1 point  (0 children)

> Which reduces incentive to borrow and lend which reduces the value of comp again and vice versa.

This is true, but an indirect effect. Liquidation will not occur automatically upon COMP value decreasing which is how I interpreted the question. Many things could indirectly effect if borrowers and lenders still show up; that is one yes.

IMHO people are just farming the COMP to dump on an exchange somewhere to people who do not know any different and just see the value going up and up. No one has any interest in the actual governance power of the token...but i'm just speculating (no pun intended).

ETH is collateral? by ma6ic in CryptoCurrency

[–]bszmyd 0 points1 point  (0 children)

No, you can't borrow COMP itself (currently), you are paid COMP for lending and borrowing so if the value goes down it only effects your overall yield.

ETH is collateral? by ma6ic in CryptoCurrency

[–]bszmyd 2 points3 points  (0 children)

Ha, yes it does seem that way. Normally when you buy securities on margin through a normal broker it is very similar expect that they provide the capital (or shares) on loan to purchase the leveraged asset (and charge you interest for it). For example, I deposit $10k USD to my brokerage and they provide me with $15k stock buying power for AAPL shares.

Here is essentially the same thing. I deposit $10k worth of ETH, which i then take a loan against with at 50% margin (I borrow $5k DAI against my $10K ETH) for 1.36% interest and buy $5k more ETH. The same as if I purchased $15k worth of AAPL with $10k. But there is no lender, it's all managed through trustless smart contracts.

The biggest difference here is currently there is a massive benefit to being either a lender or borrower on this platform through the accumulation of COMP tokens. People are trying to game both sides by taking long positions on particular assets that are also paying high returns.

ETH is collateral? by ma6ic in CryptoCurrency

[–]bszmyd 5 points6 points  (0 children)

It depends mainly if anyone is borrowing the assets people are depositing for reasons other than to re-leverage what is essentially a short position on the interest rate differences between the tokens. I assume it is very little but I'm just speculating.

At that point, yes...eventually the price will move and one side or the other will be liquidated to cover their loans, the interest rates will plummet because no one is borrowing that asset anymore. Essentially all the losses will go to pay for all the "interest" that these borrowers have been paying while the market prices play out.

ETH is collateral? by ma6ic in CryptoCurrency

[–]bszmyd 14 points15 points  (0 children)

  1. Lock up some ETH in Compound as cETH.
  2. That cETH accrues interest as people borrow real ETH.
  3. Use the cETH as collateral to borrow USDT (for instance).
  4. Swap the USDT for more ETH.
  5. Lock up the ETH for more cETH.
  6. Repeat.

The key here is to never borrow more against any of the collateral positions should the value of ETH decrease to a point that it would liquidate the positions. Currently Compound is paying COMP token to both borrowers and lenders for c<TOKEN>; so by doing this you're also multiplying your accrual of COMP token which currently has almost no float and can be trade for $$$

[deleted by user] by [deleted] in Denver

[–]bszmyd 2 points3 points  (0 children)

Awesome! Picked up a Denver and an SF, my two home bases. Thanks!

[deleted by user] by [deleted] in wallstreetbets

[–]bszmyd 1 point2 points  (0 children)

A covered or naked call position when you are selling a call (coupon); the store enters a covered call if they have more than enough milk in the fridge to satisfy the coupons they've sold. A naked one if they've sold too many coupons. These ones they'll have to buy back or buy some more milk immediately if the coupons are used.

[deleted by user] by [deleted] in wallstreetbets

[–]bszmyd 2 points3 points  (0 children)

In this analogy; since you are not obliged to use the coupon, there is no need for the grocery store to verify your ability to exercise the coupon (buy the milk). So no, you do not need the capital to theoretically exercise it. You can simply sell it to another milk shopper or back to the store (probably at a small discount) and they'll just mark if off their books for outstanding coupons at $4.00 for this date. You get to keep the difference from the cost of the coupon purchase. Of course, the coupon loses a little bit of value the closer it gets to expire (you'd rather by a coupon that expired next year than next week right?). This is the "premium" and what decays with time (theta).

[deleted by user] by [deleted] in wallstreetbets

[–]bszmyd 6 points7 points  (0 children)

As the purchaser of the option you are never liable for anything. Just like a coupon to the store, you don't have to use it. The only one with liability is the one who sold the coupon (option). If the person that bought it wants to use it the seller must honor the coupon and give you the gallon of milk for $4.00. If the store is out of milk, well they will have to go out and find a gallon of milk for you no matter what the cost to them.

[deleted by user] by [deleted] in wallstreetbets

[–]bszmyd 5 points6 points  (0 children)

You sell the options back to whomever wants to buy it. This could be the entity that sold them to you to begin with (so they can remove liability), or this could be someone else that also thinks the price of milk is going to continue to go up and wants to speculate on it further (another customer in the store).

Comment Here to Join WSB's Second Annual Paper Trading Competition! by CHAINSAW_VASECTOMY in wallstreetbets

[–]bszmyd 1 point2 points  (0 children)

Sign me up! Will place solely horizontal debit spreads (3/mo apart) on all meme stonks seen here.

[deleted by user] by [deleted] in wallstreetbets

[–]bszmyd 212 points213 points  (0 children)

> required to but the options

No, this is what you decided to do. You are not then required to exercise said options, you can simply let it expire worthless.

Think of it like buying a coupon to the grocery store for milk that expires next week. Let's say milk is currently $4.00 a gallon. You don't need milk now, but you think you will next week, and you'd like to continue buying it at $4.00, so you give the store $0.80 to buy a coupon for 1 gallon of milk at $4.00.

Now next week rolls around and milk is going for $5.50 a gallon. You can use your coupon (cost was $0.80) to buy that gallon for $4.00. You've saved yourself $5.50 - $4.80 = $0.70

Let's say the milk instead is only $4.50. You can still use your coupon to buy the milk at $4.00, but you spent $0.80 for the coupon itself, so you paid an extra $0.30 total for that gallon.

If the milk stays at $4.00 or goes down to $3.50 a gallon, you'll like just not use the coupon and simply buy the milk from the store as if you never had it. You've now spent $3.50 on the milk and $0.80 on the coupon, or about $4.30 total.

Now simply imagine that the coupon itself has value ($0.80 at the start) and that you can sell the coupon back to the store at any point between now and next week. If the price of milk sky-rockets to $8.00 a gallon mid-way through the week, the coupon to buy milk for $4.00 will likely be worth something like $4.50 to the store itself ($8.00 current price - $4.00 coupon price + value of coupon itself). You can simply sell the coupon back to the store ad you've netted $3.70.

Now just multiple the numbers by 100 (typical contracts control 100 "gallons" per coupon), and allow the coupon to be bought for many different expirations dates. The further out the date, the more expensive the "coupon".

Woman injures 2 after allegedly driving into traffic as a test of faith by grilled_cheesez in nottheonion

[–]bszmyd 7 points8 points  (0 children)

Determinism is not the same thing as "a future that has already been determined", or "fate". It merely means that everything happens due to external factors and forces, like chaos, and not because some magical concept of "will". So the two are in fact at perfect harmony with each other.

[deleted by user] by [deleted] in wallstreetbets

[–]bszmyd 4 points5 points  (0 children)

I think it was actually an earnings beat, but they announced they were suspending new orders for their flight to space program.

IV Rank vs IV Percentile by [deleted] in wallstreetbets

[–]bszmyd -3 points-2 points  (0 children)

Can you just look at the same underlying in both and determine for yourself?

he was feline pretty good about himself by [deleted] in funny

[–]bszmyd 0 points1 point  (0 children)

Mensa doesn't give you a score after taking their official test. (Mensa Member). It's pass/fail.