almostkorean
Joined 11 years ago
Joined 11 years ago
To answer GPs question, legit exchanges do spend a lot of money and effort on keeping user's assets secure so it's maybe not as easy as it seems. But in the case of FTX, I totally agree. FTX was like 2nd or 3rd highest volume exchange and could have been a highly profitable business on it's own. Only SBF knows the answer to why that wasn't enough.
1. borrow Tether
2. swap it for USDC (or stablecoin of choice)
3. wait for Tether to crash
4. pay off your Tether loan at a fraction of its original value
risk is that your tether loan will be accruing interest (currently 1.4%) so if it doesn't crash or takes too long to crash you could be liquidated.Do you have any data to back this claim?
I think they've set up a system that incentivizes long term storage (and possibly a better setup than IPFS) but theres no way in hell they can make a guarantee for more than a few years at best.
After explaining improvements to this specific issue, it still feels like way too much friction for the average person to deal with. I think there will be more improvements as time goes on but maybe that's just the cost of doing self-custody. In the end, I guess it's up to the individual to decide whether it's worth it or not.
1. borrows a large amount of money
2. use the large amount of money to do arbitrage
3. pays back the large amount of money plus any fees
4. keep profits
and it does so "atomically", so if you can't repay the loan then the transaction fails and the whole thing never happened. or you could lose money if the transaction is successful but the trade is not profitable.like I said, I'm not an expert so someone correct me if I'm wrong