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I feel like I disagree with the bottom-line a bit - a 100/0 split seems to ignore the possibility that a future stable state of the Ethereum network will be cap

I feel like I disagree with the bottom-line a bit - a 100/0 split seems to ignore the possibility that a future stable state of the Ethereum network will be capable of supporting stablecoins or other coins with arbitrary monetary policy that are capable of matching or surpassing Bitcoin in all metrics of technical merit. I would not want to be a Bitcoin maximalist in that situation.

The_rationalist 6y ago
Stablecoin is an untractable problem by design, isn't it being solvable in the future by crypto a myth?
- rglullis 6y ago
  Is it? I have been using MakerDAO and it has been holding up without any problem. Even the crash last March didn't cause a major lack of liquidity or lost backing value.
  - ogogmad 6y ago
    Can you explain what you use it for exactly?
    - rglullis 6y ago
      Three cases for now, mostly: - It's an excellent way to make payments and transfer value without giving up on your position on more volatile assets that you'd like to hold. E.g, I am long BAT. I can deposit my BAT stash on a MakerDAO vault to make an overcollaterized loan of DAI. I go on then to use DAI to pay people and services and other investments (see next point). If BAT's value falls between a certain threshold and the loan is no longer collaterized, then the loan is liquidated. - Provide liquidity in a volatile-stable pair (e.g, ETH/DAI) on a decentralized exchange like Uniswap and reduce what is commonly called impermanent loss or impairment loss. - Provide liquidity on Curve Finance on the DAI/USDC pool. The fees I get to collect from that so far more than offset the interest rate from the original loan, and if you put on top of that that Curve gives their own tokens as an incentive to liquidity providers, I am getting around 2% ROI per month by holding fairly stable and low-risk crypto assets.
      - throwamon 6y ago
        All this stuff sounds pretty interesting. Any beginner-friendly pointers on any of them? Especially the last one (how to get started, minimum amount of money for it to be worth doing, etc.).
        phist_mcgee 6y ago
        Here are some great resources: https://decrypt.co/resources/defi-ultimate-beginners-guide-decentralized-finance https://decrypt.co/resources/defi-ultimate-beginners-guide-d... https://www.voice.com/post/@osaemezu/aave-lend-a-beginners-guide-on-how-to-use-the-defi-lending-protocol-1605113297-1 https://www.voice.com/post/@osaemezu/aave-lend-a-beginners-g... https://blog.coinbase.com/a-beginners-guide-to-decentralized-finance-defi-574c68ff43c4 https://blog.coinbase.com/a-beginners-guide-to-decentralized... As for the actual yield on loans, there is no lower limit beyond the fact that there are fees to lend and return your coins to and from these lending contracts. Those fees are currently quite high, so it is in your best interest to plot those out when calcuating returns. https://bitinfocharts.com/comparison/ethereum-transactionfees.html https://bitinfocharts.com/comparison/ethereum-transactionfee... https://ethgasstation.info/ https://ethgasstation.info/
wmf 6y ago
Bitcoin's adoption isn't based on technical merit though. It's a Schelling point for digital gold.
- lacker 6y ago
  It does have the technical merit of not collapsing so far. A lot of the previous attempts at digital currency collapsed because they had more of a dependency on some quasi trusted intermediate party.
  - wmf 6y ago
    Yeah, there's a minimum level of reliability necessary to be digital gold (which Bitcoin has met) but additional technical sophistication beyond that doesn't help.

The_rationalist 6y ago

Stablecoin is an untractable problem by design, isn't it being solvable in the future by crypto a myth?

rglullis 6y ago
Is it? I have been using MakerDAO and it has been holding up without any problem. Even the crash last March didn't cause a major lack of liquidity or lost backing value.
- ogogmad 6y ago
  Can you explain what you use it for exactly?
  - rglullis 6y ago
    Three cases for now, mostly: - It's an excellent way to make payments and transfer value without giving up on your position on more volatile assets that you'd like to hold. E.g, I am long BAT. I can deposit my BAT stash on a MakerDAO vault to make an overcollaterized loan of DAI. I go on then to use DAI to pay people and services and other investments (see next point). If BAT's value falls between a certain threshold and the loan is no longer collaterized, then the loan is liquidated. - Provide liquidity in a volatile-stable pair (e.g, ETH/DAI) on a decentralized exchange like Uniswap and reduce what is commonly called impermanent loss or impairment loss. - Provide liquidity on Curve Finance on the DAI/USDC pool. The fees I get to collect from that so far more than offset the interest rate from the original loan, and if you put on top of that that Curve gives their own tokens as an incentive to liquidity providers, I am getting around 2% ROI per month by holding fairly stable and low-risk crypto assets.
    - throwamon 6y ago
      All this stuff sounds pretty interesting. Any beginner-friendly pointers on any of them? Especially the last one (how to get started, minimum amount of money for it to be worth doing, etc.).
      - phist_mcgee 6y ago
        Here are some great resources: https://decrypt.co/resources/defi-ultimate-beginners-guide-decentralized-finance https://decrypt.co/resources/defi-ultimate-beginners-guide-d... https://www.voice.com/post/@osaemezu/aave-lend-a-beginners-guide-on-how-to-use-the-defi-lending-protocol-1605113297-1 https://www.voice.com/post/@osaemezu/aave-lend-a-beginners-g... https://blog.coinbase.com/a-beginners-guide-to-decentralized-finance-defi-574c68ff43c4 https://blog.coinbase.com/a-beginners-guide-to-decentralized... As for the actual yield on loans, there is no lower limit beyond the fact that there are fees to lend and return your coins to and from these lending contracts. Those fees are currently quite high, so it is in your best interest to plot those out when calcuating returns. https://bitinfocharts.com/comparison/ethereum-transactionfees.html https://bitinfocharts.com/comparison/ethereum-transactionfee... https://ethgasstation.info/ https://ethgasstation.info/

wmf 6y ago

Bitcoin's adoption isn't based on technical merit though. It's a Schelling point for digital gold.

lacker 6y ago
It does have the technical merit of not collapsing so far. A lot of the previous attempts at digital currency collapsed because they had more of a dependency on some quasi trusted intermediate party.
- wmf 6y ago
  Yeah, there's a minimum level of reliability necessary to be digital gold (which Bitcoin has met) but additional technical sophistication beyond that doesn't help.