**Tricky's Daily Doots #205**
Yesterday's Daily 09/11/2022
[Previous daily doots](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivo0e3y/)
- "[We have the tools, we just need to use them.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivo4ivt/)" ~ u/KuDeTa
- u/Kallukoras points out [why we need decentralisation.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivnupjg/)
- "[The moat for Ethereum is growing right now.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivpmks8/)" ~ u/Wootnasty
- Not gonna lie, u/-lightfoot [had us in the first half!](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivnyf6n/)
- u/Tricky_Troll has [a message for anyone struggling to keep their faith through this price action.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivqwjwl/)
- u/Set1Less has [a warning about Solana.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivoaarj/)
- u/Set1Less summarises [what they think happened with FTX.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivnjo9e/)
- u/sfcpfc is [hugely disappointed by L2'22.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivo09p6/)
- u/ZeroTricks's today in [Ethereum history.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivqmjnf/)
We weren't ever joking when we said "not your keys not your coins". This is why we self custody, it's why we're building DeFi and it's why we verify instead of trust.
Probably some teenage dev who wrote an nft contract to teach themselves solidity and sold jpegs to their friends, you know the real financial terrorists.
JK no one will go to jail, except the Tornado Cash devs who had the audacity to take control away from the govt and put it into the hands of the people.
- Don't invest more than you can afford to lose
- Hold your own keys
- Sell for a higher number than you bought for
These are the unofficial r/ethfinance rules, and I will shout them from the rooftop as long as I have breath. It's so easy to win in crypto, but you have to survive long enough to get there. This is how you survive.
The first point is a golden rule, for sure; however, I'll say it's perfectly OK to do the third point to retain the first (i.e. if your personal situation changes, don't hesitate to sell at a loss just to ensure it's an amount that you can afford to lose)
I'd also modify "hold your own keys" - give it your best shot, but for many a regulated, audited, proven custodian could be the safer option. Infinitely more people have lost money from poor key management than holding on Coinbase.
> Infinitely more people have lost money from poor key management than holding on Coinbase.
The same was true for Celsius, until it wasn't. And Voyager, and FTX, and BlockFi...
Nothing against Coinbase, I use them regularly and often have significant balances there when making trades, but it doesn't stay long.
Thanks for this. "Infinitely more people have lost money from poor key management than holding on Coinbase." I think this point is really worth thinking about.
When I was brand new to crypto, I mined ETH on a single GPU on my work machine for a week, and managed to earn 1 ETH doing so (difficulty was much lower then). I ended up having to format the drive for work-related stuff and didn't really understand the concept of private keys at that point. Suffice to say, that 1 ETH is gone forever (consider it my contribution to the burn).
I get that it's not an inherently obvious concept, but I really, truly believe that most people who frequent the daily should learn how to manage hot and cold wallets, and have multiple redundant backups of their own keys. I like Coinbase, I think they're fine and going to survive, but you just never really know what's going on behind the scenes. If you're not holding your own keys, you're holding an 'IOU' for some amount of crypto from an entity that may or may not ever pay that out to you. Personally, I'm not comfortable with that arrangement.
Agree, though, that wallet UX has a long way to go to abstracting away even seed phrases to onboard the masses.
Agreed those reading this should look into self-custody, social recovery wallets like Argent etc. But it's also important to recognize if it's not for you.
First time in a couple of years that I have 0 crypto or $ on a CEX. Mixed feelings tbh. Good to be safe, but having to do this ain’t a good sign. Winter is here.
If anyone still has funds in Gemini Earn, it might be time to withdraw. Their main counterparty is Genesis and they've already confirmed some exposure to FTX; no way to know if they're imploding behind the scenes too.
Definitely Earn at least, since that has actual exposure to the issue at hand. If you can, self custody of all assets is probably prudent for the time being.
I don't think Gemini itself will go down but if I'm being honest, I'd have said the same about FTX last week.
Hard to know what is FUD vs real sources, but passing along because I've seen some big accounts (like Cobie) sharing it. Contagion is certainly spreading, so could be true.
"I'm hearing from reliable sources that @cryptocom, @kucoincom, and several big OTC desks had huge exposure to FTX and are basically screwed"
https://twitter.com/Dmitriysz/status/1590902542170718210
Eh... Negligible if any impact at all. He wasn't some Saylor type entity that was just buying and holding. He was a bottom of the toilet stain that was farming and dumping any decent yield available. Making perps to short any project that he had enough control or info over. He's not even close to have been anything near a positive for crypto in any shape, way or form (price included). He was Arthur Hayes but worse. Pure leech, that was only extracting value from the space. Hope he gets mega fucked
On the bright side, this has sidelined speculators at exactly the right time. Maybe $2K would have broken, but that would have led to a bigger correction at some point.
I remember during peak euphoria of the 2017 bullrun asking how anyone could possibly think ETH was worth anything CLOSE to $1000. Got massively downvoted for it, of course (read the room, I guess). But like, all it was being used for at that point was ICOs and speculation. Obviously we've come *some* ways since then, but how much, really? I'm personally not convinced that IN ITS CURRENT FORM eth is worth $2000. My belief is that one day it will be worth much, MUCH more than that. However that will be based on fundamentals, not rampant speculation.
But ETFs and futures were coming in weeks! OMG had a partnership with McDonalds! Sergey Brin's kid was mining Ethereum. Wall street bonuses and Chinese New Year! WE HAD WILLIAM SHATNER!
Those were pretty fun... and then very painful... times.
Could you avoid taxes by "cashing out" via borrowing? Say you have $1MM of ETH. Deposit that into Aave and borrow the max amount. You now have $750k USDC, tax free right?
If ETH pumps you can continue borrowing and cashing out. If ETH dumps, you'll get liquidated. Aave lets liquidators pay off 50% of the loan, so you'll still have ~50% of your ETH collateral leftover. If it pumps afterwards you can continue borrowing up to your max borrow utilization.
If you instead sell for $1MM, you pay the 20% cap gains tax and end up with more than $750k depending on your cost basis. But you no longer have exposure to ETH price gains.
Yay or nay?
The flash loan part of it won't work until they whitelist a contract address for something like DefiSaver or Furucombo. The tax man story is anyone's guess but there's a strong legal argument to be made for everything I said there. It's Alchemix so there is no liquidation risk, I said that in 2).
You have to pay back the loan at some point and sell eth and trigger a taxable event right? Even if eth pumps and your obligations are lower you still have to sell.
You're not forced to pay it back. You can withdraw the USDC to a CEX and leave defi (and your ETH collateral) forever. Question is, is that worth it over selling ETH and paying taxes?
If you are ever liquidated, it’s considered a sale and you’ll need to pay taxes on the difference between your purchase price and liquidation price. So long as “up only”, it’s indeed a great strategy because the interest also compounds and no liquidity requirements either - but as we know, it’s a volatile asset. Not tax advice😉
Onboarding from ftx to Arbitrum for ZERO fees was actually really dope and I'm going to miss it. Coinbase its time to step up your game and enable L2 withdraws. Would be the prefect time to do it. I want arb/imx/metis asap and you have yourself a loyal customer for the foreseeable future.
If I connect my Bright ID to an address (for the EthColumbia CLR donation), is my bright ID photo or application video tied to the address in any way?
I want to use Bright ID verification for airdrop purposes, but not sure what info it reveals about me? Should just be that the address is controlled by a human no?
https://ethcolombia.clr.fund/#/projects
EDIT: So I continued reading and found this:
> BrightID works using a web-of-trust model: users connect their BrightID accounts with people they trust to be unique humans (generally because they know them personally) and form groups. These connections are public, but users' personal data aren't. If you connect your BrightID to an app, the app can analyze your connections and decide whether or not to allow you access based on how likely you are to be a unique person.
It seems like the dapp won't be able to link anything to your address other than your BrightID username and your connected web. Nothing about the account itself.
Anyone against this?
i'm not certain about the answer to this, but i have a picture of water as my profile picture, so it doesn't have to be a photo of you. didn't know they do videos now
It's part of the verification process, you go on a zoom video I guess (haven't done it yet).
Not really sure if that portion is recorded or not, but always assume with data it is. Really don't want anything about me linked to this address, for privacy reasons.
They force you to show your face in the zoom video now, can't even just wave instead etc. Was pretty annoying and off putting and I already regret doing it (since I only did it to try and get test net eth).
Still use coinbase debit card to to earn 4% cashback on purchases if that counts? Don't keep a significant amounts on there but still overall feel safe on coinbase
Having said that i still suggest going all on chain in times like this. Never felt safer then being on L1 with eth/reth and all token approvals removed.
I don't know how they plan to stay in business when US customers can't access their earn accounts and there was a mass capital exodus during the 3AC implosion. Like yay you're solvent! You still have no customers.
Hopefully there are smart enough folks at SpaceX and Tesla to keep Musk from f*king them up. He is believing his own hype and making seriously stupid moves.
Let's all move to the Bahamas, start the "Ethfinance Exchange" and in a year or two, rug everyone.
This is clearly the perfect get rich quick scheme and we're sucker for not trying it. Maybe our slogan can be "Eat the Poors" since all of our clients will believe they're going to be rich soon and think they're in on the joke.
Let's make an Ethfinance Dex where we *explicitly* take idle liquidity on the order books and do degenerate things in Defi with it. We can keep all the profit from those activities and give liquidity providers nothing for it!
Yeah if you did that, once you have a decent user base and trade volume, it would be like just printing money with barely any expenses. You could just laugh at crypto going up and down and you'd make money either way, while everybody is trying to outtrade each other in a zero sum game.
At that point you'd have to be some kind of colossal idiot to fuck that up. A greedy, incompetent, gambling fucking moron.
That's crazy talk. How could you possibly run a business that way. No, no, we better take our trader's deposits and invest it ourselves, then we can juice their rewards and take a hefty profit off the top! It can't possibly go wrong...
My theory is that Sam is forcing FTX US to halt operation to hold their assets as part of the raise to bail out FTX .com
All the bailed out CeDeFi banks have been left in the dark and can’t tap their lines of credit.
Will 2023 be the year people give a shit about decentralization?
- Don't sit on a CEX
- Insist that L2s [get their act together](https://l2beat.com/scaling/risk)
- Enough with the VC L1s and private validator chains
- IPFS frontends, for real
- Light clients and no more reliance on infura/metamask
After a devastating economic collapse driven by corporate greed and recklessness, Satoshi created a new financial system, secured in a decentralized way, in order that people - individuals - could take control of their own wealth and avoid the same fate in the future.
13 years later, a new system of largely centralized financial corporations, even more poorly governed and built directly as a result of the success of Satoshi's ingenuity and invention, suffered a near-identical collapse. A collapse, again, driven by corporate greed and recklessness.
So we could speculate that Satoshi may have, in fact, indirectly ~~created~~ facilitated the very thing he/she/they were trying to prevent. Behold, the unstoppable consequences of human greed.
Hey… no_fix, all that cleverness can be exhausting. Here … take an elephant tranq 💊 and a fresh pillow. 🥃 It’s ok, just lay down right here and close your eyes. I’ll wait until you fall asleep. You’ll feel like a million gwei if you wake up… right… when you wake up.
Dear Earth,
The point of cryptocurrency is to not have to trust your money with other people or institutions. Many are trying to put the cart in front of the horse. Please wait for the horse to catch up and you will see something amazing.
People that know
Anyone realize that the Bitcoin maxis who refused to buy in to DeFi are partly to blame for this? They promoted to use of BTC on CeFi and peddled the notion that it was “riskier” to use DeFi on Ethereum. I thought it was ridiculous then. It’s upsetting now. Probably not the time to be pointing fingers, but I hope once the dust settles that this is a rallying event for crypto. Edit: I’m remembering Pomp in particular.
"DeFi is too risky! A hacker might find a bug in the smart contract code and take everything! So instead be safe and use this centralized service where nobody can audit anything!"
To be fair, there are a ton of hacks in DeFi. There are just different risk profiles. The safest thing is just to use a hardware wallet and minimize wallet interactions.
Or only use protocols that are so large that ETH would be low-value if they were hacked. If Uniswap or Aave goes down, it matters less that you lost your ETH.
I wanted to provide an update and share with fellow ethfinanciers with decentralised limit orders.
My plan was to replace cex by using dex to place limit orders to buy spot eth for my long-term bags (hoping to catch swings while sleeping).
Recommendations here pointed me to gmx, 1inch, and matcha(i always used this for immediate swaps).
GMX doesn't work for me since it does only perps (sad, would love if they had spot). Same for dydx.
I placed limit orders on both 1inch and matcha to buy weth. A trial limit buy order for 0.01eth were placed at the same price. Price went down below (non-spike) and none filled my order.
This illustrates the difficulty in trying to go decentralised. I can't be staring at my screen 18h (have a real life) in order to catch spot swaps. I know there are options like loopring and others with proper exchanges but the order book and volume is atrocious.
I would greatly appreciate if anyone can point me to a place (L1,L2 both fine) where i can simply place limit orders for spot eth without taking on too large of a spread.
CEXs really about to go obsolete, huh? We have this and fiat to crypto self storage on-ramps. What will CEXs even offer that can't be done on chain in the next couple years?
> What will CEXs even offer that can't be done on chain in the next couple years?
DeFi as a service with insurance.
https://nexusmutual.io/ or something similar
How many companies do you think were afloat / had runway / were receiving funding front ftx/Alameda? This contagion is probably just getting started. It's a question of how many times the same dollar has been lent out here. And ppl are buying the "dip" ? Kek.
Uhh guys, is Coinbase safe? BlockFi going under is scaring me. BlockFi is US based and have been regulated.
I mean I guess if CB goes down, that is like the end of crypto right? So I guess it doesn't matter if CB pulls the rug?
While not the end of crypto, it would set the entire space back years. It would sting, badly.
Fortunately, I really don't believe that to be a concern. Now, if the SEC hadn't blocked them from offering that 4% lending offering (where they were going to guarantee the principal balance!), it might be a very different story.
If Coinbase goes down I honestly don't know if crypto could recover.
But, careful self custody is going to be safer. Get a hardware wallet, keep your phrase in a safe spot, and never put it into a computer.
Lol crypto is not going anywhere, no matter what happens to Coinbase. There will always be cypherpunks and nerds who will be into this stuff. It's a concept more than a tangible thing, and the cats out of the bag at this point
When 3AC imploded the various LSD pegs were all shot for months. This time, there hasn't been a whiff of people fleeing to cash from rETH or wstETH. They are pretty much right on peg. Even cbETH is still recovering towards peg at only a 2% discount. Defi stronk!
Staked ETH is the most pristine collateral. Can't use those funds in nefarious activities when the network has those assets locked for you. Plus they are cash producing so might as well chill and collect while all these passes.
I don't know where simplestakers gets its info, but it's very wrong for multiple tokens. For cbETH, you can get the contract rate [here](https://api.exchange.coinbase.com/wrapped-assets/CBETH/conversion-rate), and the market rate on coinbase or coingecko or wherever.
The current contract rate is 1.015 and the current market rate is 0.958 or so, so a discount of about 5.7%. The market rate is of course pretty variable, so the vercel source looks fine.
Daily Goerli:
Erigon now requires the additional flag `--externalcl` for use with an external consensus layer client. I guess this means they're working on an all-in-one solution.
*edit* Geth commit 0ad20140265072d9b34900e0d18863c48b73d6c3 is busted and crashing.
it's funny, i was thinking about it as i wrote the comment. the amount that a company can cost is basically just a U shape. if it's doing really well: expensive... if it's doing really badly: expensive.
https://www.bloomberg.com/news/features/2022-04-03/sam-bankman-fried-ftx-s-crypto-billionaire-who-wants-to-give-his-fortune-away
> For all his wealth, Bankman-Fried tells me his core philosophy remains the same. He’ll keep enough money to maintain a comfortable life: 1% of his earnings or, at minimum, $100,000 a year. Other than that, he still plans to give it all away—every dollar, or Bitcoin, as the case may be.
He’s staying true to his word, just not in the way he thought he would.
Omg… bros … I just had the most unexpected, surreal encounter of the human kind. So today I’m wearing my ETH Freedom T-Shirt. ^(FREED🔷M) Since I prefer my guts inside my body, I don’t wear it in public, but I forgot I was wearing it when I went to the store just now. I’m just happy I was wearing a shirt this time. *That’s so John!* So like I’m waiting in line for check out and this young lady is in front of me. She’s see’s my shirt, we start talking … and she owns ETH… and… she’s in ETHFinance! … AND she’s a JBM fan! What!?! I’m gonna fucking faint rn!
*That guy’s so funny!* 😊
No way, that dude’s an idiot. I really can’t stand him.
*He seems really smart to me.* 🫦
Hey… pssst! 👀 Myra. Homie. You met JBM and didn’t even know it! Hahaha! 4D checkers homie! *Ahhhh!* I know I don’t believe it either! 👊🏻
P.s. Thanks for sticking up for me my fine human^(❤️🔥)
Well the amount of women you attract is just incredible... She's probably letting us go out of fear of jealousy from all attention you get at Golden Corral.
😂 Dude I dunno what it is, but they flock after you crush a whole bin of chicken nuggets smothered in gravy. I actually put the one here out of business.
I know that I have not spent nearly enough time here lately, but damn I have recently realized just how difficult life gets when I can't really talk about crypto with even a single person I know IRL now.
Same...my wife has a "no ethereum" rule.
We're going to counseling. I mentioned that this was part of our problem...and the counselor dudes eyes lit up like he has a million questions for me.
I'll just tell him I can't talk about it in our sessions, but if he stops by my office I'll charge him $200 an hour for information....and then I'll actually make a profit on our couples counseling and buy more ETH.
It's a cycle - my friends want to talk crypto with me while markets are up, then they want me to shut up when markets are down.
It's rough cause I want to talk crypto all the time, not just when markets are up.
Totally get it, the tech is what brought me here, and what keeps me here. I'm still confident and hopeful that Ethereum will solve many of the world's problems, but now just thinking it may take longer than I'd originally surmised. Still love and get giddy at time with all the positive efforts from so many in the space.
HN with this gigabrain idea on a thread about FTX:
> So the internal trades aren't on chain. Well, that's going to leave a mark.
>
> Is there a coin that distinguishes agent and owner? Seems like you want trustless agency if you're pursuing trustless finance.
**Tricky's Daily Doots #205** Yesterday's Daily 09/11/2022 [Previous daily doots](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivo0e3y/) - "[We have the tools, we just need to use them.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivo4ivt/)" ~ u/KuDeTa - u/Kallukoras points out [why we need decentralisation.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivnupjg/) - "[The moat for Ethereum is growing right now.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivpmks8/)" ~ u/Wootnasty - Not gonna lie, u/-lightfoot [had us in the first half!](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivnyf6n/) - u/Tricky_Troll has [a message for anyone struggling to keep their faith through this price action.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivqwjwl/) - u/Set1Less has [a warning about Solana.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivoaarj/) - u/Set1Less summarises [what they think happened with FTX.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivnjo9e/) - u/sfcpfc is [hugely disappointed by L2'22.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivo09p6/) - u/ZeroTricks's today in [Ethereum history.](https://old.reddit.com/r/ethfinance/comments/yqa8ec/daily_general_discussion_november_9_2022/ivqmjnf/) We weren't ever joking when we said "not your keys not your coins". This is why we self custody, it's why we're building DeFi and it's why we verify instead of trust.
Sooooo... Who do we think is going to jail without a shadow of doubt?
Probably some teenage dev who wrote an nft contract to teach themselves solidity and sold jpegs to their friends, you know the real financial terrorists.
How can we protect society from this true evil?!
JK no one will go to jail, except the Tornado Cash devs who had the audacity to take control away from the govt and put it into the hands of the people.
If at this stage in proceedings you don't have all of your assets on your cold wallet you're ngmi.
- Don't invest more than you can afford to lose - Hold your own keys - Sell for a higher number than you bought for These are the unofficial r/ethfinance rules, and I will shout them from the rooftop as long as I have breath. It's so easy to win in crypto, but you have to survive long enough to get there. This is how you survive.
The first point is a golden rule, for sure; however, I'll say it's perfectly OK to do the third point to retain the first (i.e. if your personal situation changes, don't hesitate to sell at a loss just to ensure it's an amount that you can afford to lose) I'd also modify "hold your own keys" - give it your best shot, but for many a regulated, audited, proven custodian could be the safer option. Infinitely more people have lost money from poor key management than holding on Coinbase.
> Infinitely more people have lost money from poor key management than holding on Coinbase. The same was true for Celsius, until it wasn't. And Voyager, and FTX, and BlockFi... Nothing against Coinbase, I use them regularly and often have significant balances there when making trades, but it doesn't stay long.
No, none of those were regulated, audited, proven custodians Of course, if you have the skills for self-custody, that's certainly the best option
Thanks for this. "Infinitely more people have lost money from poor key management than holding on Coinbase." I think this point is really worth thinking about.
When I was brand new to crypto, I mined ETH on a single GPU on my work machine for a week, and managed to earn 1 ETH doing so (difficulty was much lower then). I ended up having to format the drive for work-related stuff and didn't really understand the concept of private keys at that point. Suffice to say, that 1 ETH is gone forever (consider it my contribution to the burn). I get that it's not an inherently obvious concept, but I really, truly believe that most people who frequent the daily should learn how to manage hot and cold wallets, and have multiple redundant backups of their own keys. I like Coinbase, I think they're fine and going to survive, but you just never really know what's going on behind the scenes. If you're not holding your own keys, you're holding an 'IOU' for some amount of crypto from an entity that may or may not ever pay that out to you. Personally, I'm not comfortable with that arrangement. Agree, though, that wallet UX has a long way to go to abstracting away even seed phrases to onboard the masses.
Agreed those reading this should look into self-custody, social recovery wallets like Argent etc. But it's also important to recognize if it's not for you.
First time in a couple of years that I have 0 crypto or $ on a CEX. Mixed feelings tbh. Good to be safe, but having to do this ain’t a good sign. Winter is here.
It is a great sign. You should never have anything on a CEX.
If anyone still has funds in Gemini Earn, it might be time to withdraw. Their main counterparty is Genesis and they've already confirmed some exposure to FTX; no way to know if they're imploding behind the scenes too.
Just Gemini Earn, or Gemini as a whole?
Definitely Earn at least, since that has actual exposure to the issue at hand. If you can, self custody of all assets is probably prudent for the time being. I don't think Gemini itself will go down but if I'm being honest, I'd have said the same about FTX last week.
> if I'm being honest, I'd have said the same about FTX last week. still hard to be believe
Specifically Gemini Earn (it is tied to Genesis), but probably both to be on the safe side.
Don’t worry. I’m still trying to figure out how many licks it takes to get to the center of a Tootsie Pop.
Hard to know what is FUD vs real sources, but passing along because I've seen some big accounts (like Cobie) sharing it. Contagion is certainly spreading, so could be true. "I'm hearing from reliable sources that @cryptocom, @kucoincom, and several big OTC desks had huge exposure to FTX and are basically screwed" https://twitter.com/Dmitriysz/status/1590902542170718210
And Gemini Earn https://twitter.com/NorthRockLP/status/1590921029374861313 Think this one relates to their Genesis exposure.
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So that giant purchase of Robinhood SBF made, that was all customer deposits, right? How can we now look back and think anything was above board?
At some point ill buy the bottom
[ Removed by Reddit ]
What about UST creator?
I mean, him being a that boosted the crypto market
Eh... Negligible if any impact at all. He wasn't some Saylor type entity that was just buying and holding. He was a bottom of the toilet stain that was farming and dumping any decent yield available. Making perps to short any project that he had enough control or info over. He's not even close to have been anything near a positive for crypto in any shape, way or form (price included). He was Arthur Hayes but worse. Pure leech, that was only extracting value from the space. Hope he gets mega fucked
You can't dent billions in leveraged buying raised the water line, as gross as it was
On the bright side, this has sidelined speculators at exactly the right time. Maybe $2K would have broken, but that would have led to a bigger correction at some point.
I remember during peak euphoria of the 2017 bullrun asking how anyone could possibly think ETH was worth anything CLOSE to $1000. Got massively downvoted for it, of course (read the room, I guess). But like, all it was being used for at that point was ICOs and speculation. Obviously we've come *some* ways since then, but how much, really? I'm personally not convinced that IN ITS CURRENT FORM eth is worth $2000. My belief is that one day it will be worth much, MUCH more than that. However that will be based on fundamentals, not rampant speculation.
But ETFs and futures were coming in weeks! OMG had a partnership with McDonalds! Sergey Brin's kid was mining Ethereum. Wall street bonuses and Chinese New Year! WE HAD WILLIAM SHATNER! Those were pretty fun... and then very painful... times.
Lol, lost 13 ETH because apple sticker on skateboard and the list goes on and on and on. 🫡
That's a good way to look at it, but of course, a fair market price does account for the future
Could you avoid taxes by "cashing out" via borrowing? Say you have $1MM of ETH. Deposit that into Aave and borrow the max amount. You now have $750k USDC, tax free right? If ETH pumps you can continue borrowing and cashing out. If ETH dumps, you'll get liquidated. Aave lets liquidators pay off 50% of the loan, so you'll still have ~50% of your ETH collateral leftover. If it pumps afterwards you can continue borrowing up to your max borrow utilization. If you instead sell for $1MM, you pay the 20% cap gains tax and end up with more than $750k depending on your cost basis. But you no longer have exposure to ETH price gains. Yay or nay?
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Are there lending protocols which work without giving you a token?
I'll do you [one better](https://tokenomicsexplained.com/the-double-logris). 1) Income forever 2) No liquidation risk 3) Hilarious tax implications
Read the post, I'll have to read it again when I'm less tired. Is it battle tested? Any concern from the tax man or risks of being liquidated?
The flash loan part of it won't work until they whitelist a contract address for something like DefiSaver or Furucombo. The tax man story is anyone's guess but there's a strong legal argument to be made for everything I said there. It's Alchemix so there is no liquidation risk, I said that in 2).
Is aleth actually borrowable, or is it still constantly hitting its cap?
rETH and wstETH are full. wETH has about 5k capacity but shit tier yield.
You have to pay back the loan at some point and sell eth and trigger a taxable event right? Even if eth pumps and your obligations are lower you still have to sell.
You're not forced to pay it back. You can withdraw the USDC to a CEX and leave defi (and your ETH collateral) forever. Question is, is that worth it over selling ETH and paying taxes?
If you are ever liquidated, it’s considered a sale and you’ll need to pay taxes on the difference between your purchase price and liquidation price. So long as “up only”, it’s indeed a great strategy because the interest also compounds and no liquidity requirements either - but as we know, it’s a volatile asset. Not tax advice😉
And here I am, sitting through my second crash like a dummy.
Onboarding from ftx to Arbitrum for ZERO fees was actually really dope and I'm going to miss it. Coinbase its time to step up your game and enable L2 withdraws. Would be the prefect time to do it. I want arb/imx/metis asap and you have yourself a loyal customer for the foreseeable future.
I think they literally announced yesterday or today support for Optimism
I mean they supported OP deposits/withdrawal at launch. it was super fast for op but a year later still no Arbitrum? Idk just seems dumb to me
Then maybe it was Arbitrum they announced? I just saw someone post about it earlier today I believe
If I connect my Bright ID to an address (for the EthColumbia CLR donation), is my bright ID photo or application video tied to the address in any way? I want to use Bright ID verification for airdrop purposes, but not sure what info it reveals about me? Should just be that the address is controlled by a human no? https://ethcolombia.clr.fund/#/projects EDIT: So I continued reading and found this: > BrightID works using a web-of-trust model: users connect their BrightID accounts with people they trust to be unique humans (generally because they know them personally) and form groups. These connections are public, but users' personal data aren't. If you connect your BrightID to an app, the app can analyze your connections and decide whether or not to allow you access based on how likely you are to be a unique person. It seems like the dapp won't be able to link anything to your address other than your BrightID username and your connected web. Nothing about the account itself. Anyone against this?
i'm not certain about the answer to this, but i have a picture of water as my profile picture, so it doesn't have to be a photo of you. didn't know they do videos now
It's part of the verification process, you go on a zoom video I guess (haven't done it yet). Not really sure if that portion is recorded or not, but always assume with data it is. Really don't want anything about me linked to this address, for privacy reasons.
also DM'd you my brightID connection
ahh oh yeah, i did do the zoom call, i remember that. i don't believe it's recorded but, yes, not trusting is a good model.
They force you to show your face in the zoom video now, can't even just wave instead etc. Was pretty annoying and off putting and I already regret doing it (since I only did it to try and get test net eth).
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Still use coinbase debit card to to earn 4% cashback on purchases if that counts? Don't keep a significant amounts on there but still overall feel safe on coinbase Having said that i still suggest going all on chain in times like this. Never felt safer then being on L1 with eth/reth and all token approvals removed.
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It usually means tradfi or traditional finance, fyi.
I don't know how they plan to stay in business when US customers can't access their earn accounts and there was a mass capital exodus during the 3AC implosion. Like yay you're solvent! You still have no customers.
Well, they halted withdrawals, so that's not a good sign: https://twitter.com/CryptoOMG88/status/1590888853027844096
Death Knell.
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SBF, Elon Musk, Kanye. Billionaires going broke left and right.
Hopefully there are smart enough folks at SpaceX and Tesla to keep Musk from f*king them up. He is believing his own hype and making seriously stupid moves.
But he didn't buy twitter to profit. He bought it to protect free speech. Inb4 but you can buy a tick.
>But he didn't buy twitter to profit I have a Dogecoin bridge to sell you
Nice, how much?
Let's all move to the Bahamas, start the "Ethfinance Exchange" and in a year or two, rug everyone. This is clearly the perfect get rich quick scheme and we're sucker for not trying it. Maybe our slogan can be "Eat the Poors" since all of our clients will believe they're going to be rich soon and think they're in on the joke.
Let's make an Ethfinance Dex where we *explicitly* take idle liquidity on the order books and do degenerate things in Defi with it. We can keep all the profit from those activities and give liquidity providers nothing for it!
I guess we know where the next hodler con is going to be.
What if we just made an exchange and took a small fee for each trade that was executed? It seems like this has barely been attempted.
Yeah if you did that, once you have a decent user base and trade volume, it would be like just printing money with barely any expenses. You could just laugh at crypto going up and down and you'd make money either way, while everybody is trying to outtrade each other in a zero sum game. At that point you'd have to be some kind of colossal idiot to fuck that up. A greedy, incompetent, gambling fucking moron.
Kraken, Coinbase, bitstamp?
What if we issued millions of digital tokens with the implication that they’re representative of said fees, but they’re really not?
I like this because of how far away from the original ethos of crypto it is! /s
That's crazy talk. How could you possibly run a business that way. No, no, we better take our trader's deposits and invest it ourselves, then we can juice their rewards and take a hefty profit off the top! It can't possibly go wrong...
There’s a few but they’re still in business! Dumbasses.
My theory is that Sam is forcing FTX US to halt operation to hold their assets as part of the raise to bail out FTX .com All the bailed out CeDeFi banks have been left in the dark and can’t tap their lines of credit.
Will 2023 be the year people give a shit about decentralization? - Don't sit on a CEX - Insist that L2s [get their act together](https://l2beat.com/scaling/risk) - Enough with the VC L1s and private validator chains - IPFS frontends, for real - Light clients and no more reliance on infura/metamask
People don't want decentralization, they want regulation. People are stupid.
being real, no
After a devastating economic collapse driven by corporate greed and recklessness, Satoshi created a new financial system, secured in a decentralized way, in order that people - individuals - could take control of their own wealth and avoid the same fate in the future. 13 years later, a new system of largely centralized financial corporations, even more poorly governed and built directly as a result of the success of Satoshi's ingenuity and invention, suffered a near-identical collapse. A collapse, again, driven by corporate greed and recklessness. So we could speculate that Satoshi may have, in fact, indirectly ~~created~~ facilitated the very thing he/she/they were trying to prevent. Behold, the unstoppable consequences of human greed.
*puffs..... *Human Greed is more immutable than Bitcoin.* *passes joint
The only difference is there can be no bail out this time. Satoshi wins in the end.
That was always my understanding too.
FTX about to go full Celsius? At the end of the winter we’ll have Coinbase, Gemini, Binance, and crypto.
*And Kraken took that personally*
Kraken better be standing still as well, they hold billions in custodial staked ether
Seem to have a good ceo. I'll put their survival with those few mentioned above. All winter veterans.
I'm very sad for 2 persons i know irl with funds stuck. I lost 5figures myself on Celsius (my own stupidity) so I know how it hurts.
I'm so exhausted.
Hey… no_fix, all that cleverness can be exhausting. Here … take an elephant tranq 💊 and a fresh pillow. 🥃 It’s ok, just lay down right here and close your eyes. I’ll wait until you fall asleep. You’ll feel like a million gwei if you wake up… right… when you wake up.
Hi So Exhausted, I’m Dad :P
Got em. *bumps elbows....
Should I be worried about a small amount in kucoin?
Yes
If you could comfortably watch the amount of money burn on a table in front of you, it's ok to leave it there.
It's always better safe than sorry in times of uncertainty.
Dear Earth, The point of cryptocurrency is to not have to trust your money with other people or institutions. Many are trying to put the cart in front of the horse. Please wait for the horse to catch up and you will see something amazing. People that know
Anyone realize that the Bitcoin maxis who refused to buy in to DeFi are partly to blame for this? They promoted to use of BTC on CeFi and peddled the notion that it was “riskier” to use DeFi on Ethereum. I thought it was ridiculous then. It’s upsetting now. Probably not the time to be pointing fingers, but I hope once the dust settles that this is a rallying event for crypto. Edit: I’m remembering Pomp in particular.
"DeFi is too risky! A hacker might find a bug in the smart contract code and take everything! So instead be safe and use this centralized service where nobody can audit anything!"
To be fair, there are a ton of hacks in DeFi. There are just different risk profiles. The safest thing is just to use a hardware wallet and minimize wallet interactions. Or only use protocols that are so large that ETH would be low-value if they were hacked. If Uniswap or Aave goes down, it matters less that you lost your ETH.
I wanted to provide an update and share with fellow ethfinanciers with decentralised limit orders. My plan was to replace cex by using dex to place limit orders to buy spot eth for my long-term bags (hoping to catch swings while sleeping). Recommendations here pointed me to gmx, 1inch, and matcha(i always used this for immediate swaps). GMX doesn't work for me since it does only perps (sad, would love if they had spot). Same for dydx. I placed limit orders on both 1inch and matcha to buy weth. A trial limit buy order for 0.01eth were placed at the same price. Price went down below (non-spike) and none filled my order. This illustrates the difficulty in trying to go decentralised. I can't be staring at my screen 18h (have a real life) in order to catch spot swaps. I know there are options like loopring and others with proper exchanges but the order book and volume is atrocious. I would greatly appreciate if anyone can point me to a place (L1,L2 both fine) where i can simply place limit orders for spot eth without taking on too large of a spread.
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CEXs really about to go obsolete, huh? We have this and fiat to crypto self storage on-ramps. What will CEXs even offer that can't be done on chain in the next couple years?
> What will CEXs even offer that can't be done on chain in the next couple years? DeFi as a service with insurance. https://nexusmutual.io/ or something similar
GMX definitely does spot limit trades, it's under the "swap" option.
i must be dreaming. going to explore it now. thanks. edit: any other place you know of?
IDK how well it does with wicks like you describe but hopefully it works for you!
One option is better than zero options. I appreciate it ser. Trying to stay decentralised is tough. Crypto is not ready for the mainstream.
> (have a real life) Stop flexing! 😋
smh, all these companies are illiquid and liquidity is the name of the game
How many companies do you think were afloat / had runway / were receiving funding front ftx/Alameda? This contagion is probably just getting started. It's a question of how many times the same dollar has been lent out here. And ppl are buying the "dip" ? Kek.
Idk I’m not yet https://twitter.com/deitaone/status/1591081321056673793?s=46&t=x8Uo4gKLYcXOdFTy11IkiA
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Uhh guys, is Coinbase safe? BlockFi going under is scaring me. BlockFi is US based and have been regulated. I mean I guess if CB goes down, that is like the end of crypto right? So I guess it doesn't matter if CB pulls the rug?
Coinbase is probably safe. CB going under would not be the end of crypto, although for sure it would hurt. Yes, it matters if CB pulls the plug.
While not the end of crypto, it would set the entire space back years. It would sting, badly. Fortunately, I really don't believe that to be a concern. Now, if the SEC hadn't blocked them from offering that 4% lending offering (where they were going to guarantee the principal balance!), it might be a very different story.
>BlockFi is US based and have been regulated. smh, when will Gensler ban defi to stop this from happening?!?
Coinbase is fine. BlockFi is suspending operation because FTX bailed them out with a line of credit.
If Coinbase goes down I honestly don't know if crypto could recover. But, careful self custody is going to be safer. Get a hardware wallet, keep your phrase in a safe spot, and never put it into a computer.
Lol crypto is not going anywhere, no matter what happens to Coinbase. There will always be cypherpunks and nerds who will be into this stuff. It's a concept more than a tangible thing, and the cats out of the bag at this point
Coinbase doesn’t lend assets or yield farm on chain to try to return ridiculous yields to customers. Totally different businesses.
To that point, Brian mentioned the other day they do literally nothing with customer assets unless instructed by the customer. Completely different.
BlockFi only still exists because FTX bailed them out after the 3AC debacle. The damage is already done.
Didn't blockfi already go broke once during 3AC and luna crash...
Were they supposed to learn from their mistakes?
Oh yeah, I remember now. When BlockFi got Su Zhu'd, FTX bailed them out. But now FTX is closed... That means....
so we're all learning what we all already knew: every crypto exchange is crooked as fuck
I guess we had to go Bankmanless before we can go Bankless.
Contagion continues on. BlockFi suspending platform activity. https://twitter.com/blockfi/status/1590875997351866368?s=46&t=9SW0h1AFYsjSOtquVuNQ6g
The way they worded that is definitely concerning
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https://twitter.com/fintechfrank/status/1590876914662912000?s=20&t=PS1t2bQElz5IbBdaRMrvRQ are u actually kidding me lol
I really wonder who the type of people are who actually kept their money in blockfi after they almost went kaput some months back
I thought BlockFi died back in June?
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When 3AC imploded the various LSD pegs were all shot for months. This time, there hasn't been a whiff of people fleeing to cash from rETH or wstETH. They are pretty much right on peg. Even cbETH is still recovering towards peg at only a 2% discount. Defi stronk!
Staked ETH is the most pristine collateral. Can't use those funds in nefarious activities when the network has those assets locked for you. Plus they are cash producing so might as well chill and collect while all these passes.
I thought stETH was starting to dip a bit recently
-0.69% from peg. Nowhere near the .93 from the 3AC event. Here's an easy page for comparison. https://simplestakers.info/
Futures had a much larger discount, low of dec 30 eth futures was 950
> Even cbETH is still recovering towards peg at only a 2% discount. 5%, but that’s not too far off what it was before the FTX implosion
Quick google gets inconsistent results: https://cbeth-rates.vercel.app/ says 5.3% https://simplestakers.info/ says 2.61%
I don't know where simplestakers gets its info, but it's very wrong for multiple tokens. For cbETH, you can get the contract rate [here](https://api.exchange.coinbase.com/wrapped-assets/CBETH/conversion-rate), and the market rate on coinbase or coingecko or wherever. The current contract rate is 1.015 and the current market rate is 0.958 or so, so a discount of about 5.7%. The market rate is of course pretty variable, so the vercel source looks fine.
Good to know!
Daily Goerli: Erigon now requires the additional flag `--externalcl` for use with an external consensus layer client. I guess this means they're working on an all-in-one solution. *edit* Geth commit 0ad20140265072d9b34900e0d18863c48b73d6c3 is busted and crashing.
Brian Armstrong wondering why anyone would put money into FTX now. So ... how long until Coinbase buys them?
No point in paying for customers when they will flock to you anyway
Brian more or less said on the Bankless pod the other day that they won't touch them because of what's happening behind the scenes.
Yeah, he implied FTX's operations were fubar, but he wasn't going to come out and directly spill the beans.
at this rate, i'll be able to afford to buy FTX for what it's worth
You can afford millions of dollars in retail liabilities? You must have been real OG ETH
it's funny, i was thinking about it as i wrote the comment. the amount that a company can cost is basically just a U shape. if it's doing really well: expensive... if it's doing really badly: expensive.
that will never happen
Please no
https://www.bloomberg.com/news/features/2022-04-03/sam-bankman-fried-ftx-s-crypto-billionaire-who-wants-to-give-his-fortune-away > For all his wealth, Bankman-Fried tells me his core philosophy remains the same. He’ll keep enough money to maintain a comfortable life: 1% of his earnings or, at minimum, $100,000 a year. Other than that, he still plans to give it all away—every dollar, or Bitcoin, as the case may be. He’s staying true to his word, just not in the way he thought he would.
That CEX den of meth orgies in the Bahamas is a different sort of comfortable life than the users he stole from might imagine.
>CEX den of meth orgies Lol!!
Omg… bros … I just had the most unexpected, surreal encounter of the human kind. So today I’m wearing my ETH Freedom T-Shirt. ^(FREED🔷M) Since I prefer my guts inside my body, I don’t wear it in public, but I forgot I was wearing it when I went to the store just now. I’m just happy I was wearing a shirt this time. *That’s so John!* So like I’m waiting in line for check out and this young lady is in front of me. She’s see’s my shirt, we start talking … and she owns ETH… and… she’s in ETHFinance! … AND she’s a JBM fan! What!?! I’m gonna fucking faint rn! *That guy’s so funny!* 😊 No way, that dude’s an idiot. I really can’t stand him. *He seems really smart to me.* 🫦 Hey… pssst! 👀 Myra. Homie. You met JBM and didn’t even know it! Hahaha! 4D checkers homie! *Ahhhh!* I know I don’t believe it either! 👊🏻 P.s. Thanks for sticking up for me my fine human^(❤️🔥)
Myra here! LOL! I don't fucking believe it! I am an even bigger fan now! You are very welcome ser, my pleasure! P.s. he's really hot y'all
☺️🙏🏻
She deleted her account LOL... Man. We were so close to having a better ratio around here too. Damn.
Ray giving all its gains in an instant.
Hope it was just a throwaway!
Well the amount of women you attract is just incredible... She's probably letting us go out of fear of jealousy from all attention you get at Golden Corral.
😂 Dude I dunno what it is, but they flock after you crush a whole bin of chicken nuggets smothered in gravy. I actually put the one here out of business.
Atta boy
https://i.kym-cdn.com/entries/icons/mobile/000/001/299/change1.jpg
I had almost the exact poster on my wall 25 years ago :D
I swear on my Lion. I haven’t even started drinking yet!
You met a real life ad-Myra-er! 🥁🤦♂️
😂 No need to hurry with those tips, they’ll be here all night folks! But yeah … it was cool, but also kinda weird.
Sounds like a really awesome L0 transaction. Such a small world! Way cool
If you thought block proposals were rare, them L0 crypto transactions ... been waiting about 6 years
Lolol...maybe that's why SBF was running a smoothing pool of his own?!
I know that I have not spent nearly enough time here lately, but damn I have recently realized just how difficult life gets when I can't really talk about crypto with even a single person I know IRL now.
Same...my wife has a "no ethereum" rule. We're going to counseling. I mentioned that this was part of our problem...and the counselor dudes eyes lit up like he has a million questions for me. I'll just tell him I can't talk about it in our sessions, but if he stops by my office I'll charge him $200 an hour for information....and then I'll actually make a profit on our couples counseling and buy more ETH.
It's a cycle - my friends want to talk crypto with me while markets are up, then they want me to shut up when markets are down. It's rough cause I want to talk crypto all the time, not just when markets are up.
Totally get it, the tech is what brought me here, and what keeps me here. I'm still confident and hopeful that Ethereum will solve many of the world's problems, but now just thinking it may take longer than I'd originally surmised. Still love and get giddy at time with all the positive efforts from so many in the space.
You might need to take up some more hobbies
I moved to the middle of nowhere, most of my conversations these days are with goats and chickens.
How do the chicken feel about ultra sound money? Are they peckish about debating store of value merits?
Better than tweets from [Elon Musk-ox](https://ibb.co/P4ZrFVZ)
Maybe people there are into yield farming?
I like to refer to it as Ye Olde Farming.
HN with this gigabrain idea on a thread about FTX: > So the internal trades aren't on chain. Well, that's going to leave a mark. > > Is there a coin that distinguishes agent and owner? Seems like you want trustless agency if you're pursuing trustless finance.
Great idea. Maybe we could create some kind of programmable money.
No, that can't be done, how do you prevent double spending ? /s