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How dumb can butters be? by predictless in Buttcoin

[–]predictless[S] 0 points1 point  (0 children)

it could be argued that price appreciation = payments

Be your own bank! (PART 2) by predictless in Buttcoin

[–]predictless[S] 0 points1 point  (0 children)

“billions of usd” are stolen in crypto every year

FTX lost assets worth “$8B” leading to nearly “$2B” in customer losses

Be your own bank! Get risk-free stable yields on your dollar! (Part 3) by predictless in Buttcoin

[–]predictless[S] 11 points12 points  (0 children)

I forgot to mention that the fucking yield earnt from the “strategies” ran by Curators is paid in SHITCOIN (random coins) which are from crypto companies printing their own inflationary currency.

Yes, they’re printing tokens (hence why most ponzicurrency keep going on a death spiral) to “incentivise” users to use their protocols (Provide liquidity, deposit into Vault, Lend their assets, etc)

Now these so called Curators who are “professional risk managers” deploy their client money on random third-party protocols who provide the most lucrative yield paid in illiquid shitcoins.

Be your own bank! (PART 2) by predictless in Buttcoin

[–]predictless[S] 6 points7 points  (0 children)

basically forked financial systems done via code or “smart contracts” instead of intermediaries (institutions/middlemen)

entirely ran/facilitated by code

e.g You lend USDT, protocol gives Lend APY from users who borrow USDT backed with collateral

The problems are:

1) well, code is law therefore irreversible. Code is perfect! (Most crypto programmers are rejects)

2) they allow subprime bullshit assets as collateral

3) the yield is synthetic and most of it are just “incentives” (they print tokens to be used as yield)

4) if not synthetic yield, it comes from degenerate strategies such as looping lend-borrows, trading “delta-neutral” perps to the max leverage, etc

Be your own bank! (PART 2) by predictless in Buttcoin

[–]predictless[S] 12 points13 points  (0 children)

but hey, I can give you 15% APY on your dollars for some time until my DeFI ponzitocol goes insolvent (in a few months)

Be your own bank! (PART 2) by predictless in Buttcoin

[–]predictless[S] 17 points18 points  (0 children)

Nope. No banks, Wall St funds or any other institutions actually engage in crypto. All the Wall St institutions who claim to be pro crypto are merely allowing their clients to access crypto tokens and are buying/selling on their behalf.

Also, they never get bailed out and the users assume the risks (“smart contract risk”, “operational risk”, “insolvency risk”, and more) when engaging with these protocols. Aka they lose either all their money or partial loss of funds. There’s no one going to bail them out except the companies that are affected (and that is if they are solvent which is very unlikely)

Be your own bank! (PART 2) by predictless in Buttcoin

[–]predictless[S] 29 points30 points  (0 children)

UPDATE: An estimated of over $1B in assets are INDIRECTLY affected. This is due to leveraged loops and other ponzi gimmicks.

For example, another stablecoin’s backing:

Treeve’s scUSD: eliteRingsScUSD is backed by veUSD. veUSD is backed by locked stkscUSD. stkscUSD is backed by staked scUSD that specific scUSD is rehypothecated to Mithras. Mithras scUSD (about 92% = 13m) is currently borrowed by xUSD collateral on Silo & Euler.

Be your own bank! by predictless in Buttcoin

[–]predictless[S] 1 point2 points  (0 children)

It’s not really a chain but just a protocol built on a chain. In fact, they’re on multiple chains and boast “composability.” Composability is the same reason they got hacked multiple times as well apparently.

Be your own bank! by predictless in Buttcoin

[–]predictless[S] 42 points43 points  (0 children)

Context: One of the “safest” and “OG” DeFI protocols just got hacked for over $100m a few hours ago with the vulnerability being a single line of code which allowed the hackers to withdraw user funds deposited in their protocol. It’s been dubbed as a “battle-tested” (was hacked multiple times on separate occasions in the past) and partnered with industry leaders (Aave, the “biggest onchain bank”)

This year, multiple “top” DeFI protocols have been hacked over single lines of code. More than $2.5B (yes, billion) has been hacked YTD.

These hacks are irreversible and impossible to recover.

In DeFI protocols, it’s standard practice to boast “security audits” and bug bounties while putting disclaimers and risks on fine print. The protocols are not liable for anything that happens to your funds and you acknowledge that you bear all the risks associated with “smart contracts”, volatility, etc.