Proof of Concept: Decentralization
FTX finds out you can't declare bankruptcy to circumvent your DeFi loans.
joshyote ✌️👽
December 08, 2022
gm ✌️
It all points to the same answer — decentralization.
I read a Harvard Article, Why Decentralized Crypto Platforms Are Weathering the Crash
So watch out, here comes the smart guy stuff.
The tl;dr of the super smart Harvard Business Review article above is:
The recent crash of the cryptocurrency market, coupled with the collapse of several leading crypto lenders and exchanges, has raised questions about the stability of the market. Critics argue that the opaque, centralized nature of these institutions made it difficult for customers to understand the risks they were taking, and contributed to the market's instability. In contrast, decentralized protocols that operate with fixed algorithms and extreme transparency performed relatively well during the turmoil. As decentralized finance matures, it may provide a path toward harnessing the competitive benefits of crypto infrastructure with better transparency and consumer protection.
Let's take a look at why decentralization is the obvious answer to our woes.
me rn 👇
But first, this week's top collections by volume:
This is the week of COCKPUNCH! COCKPUNCH is Time Ferriss' new project, which he said will be tied to a new podcast based on the fictional universe of COCKPUNCH. Initial sales proceeds from COCKPUNCH will go to Tim's foundation to advance the study of psychedelic therapy treatment. It seemed like COCKPUNCH was destined for the moon, with initial sales topping 4 ETH. Since then, the hype for COCKPUNCH has chilled out a bit, and the floor is resting at around .8 ETH. COCKPUNCH reveal is tomorrow, so it's likely we might see a lot more price action in the next twenty-four hours.
COCKPUNCH
Proof of concept: decentralization
First off, if you haven't read our blog on How the Fall of FTX Proves the Need for Decentralized Blockchain Technology, do that ASAP!
Basically, the need for decentralization, especially in the realm of financial systems, is more apparent than ever.
The collapse of FTX — and other prominent CEXs and funds — have highlighted the pitfalls of centralized institutions. These problems include gatekeeping, lack of ownership over customer funds, under-collateralization, unclear regulation, and insider trading – issues that decentralized exchanges (DEXs) and decentralized finance (DeFi) aim to solve using decentralized blockchain technology. DEXs and DeFi platforms offer increased security, transparency, and permissionless and trustless transactions, as well as the self-custody of assets.
"Moreover, while the news of the collapse of FTX is empowering crypto skeptics, we would point out that all the recent collapses in the crypto ecosystem have been from centralized players and not from decentralized protocols."
So will we learn from this?
If you're going to be sleazy with DeFi, you have to do it out in the open
Everything, everywhere, all at once.
When dealing with decentralized blockchain ledgers, there is nowhere to hide. Yeah, you can be a scammer and a crook, but there are no dark pools, closed doors, or cigar clubs to hide in. If you make a move, it's out in the open.
This is one super strong case for DeFi and decentralization in general.
Aaaaaand, you can't declare bankruptcy to circumvent your DeFi loans.
3AC was Bear Stearns;
FTX is crypto’s Lehman moment.Here’s why DeFi is the future of finance, and THE solution that’ll prevent this from happening yet again 🧵👇
— Treehouse 🎄 (@TreehouseFi)
Nov 10, 2022
thread continued:
Alameda paid back one of their largest on-chain loans on @MIM_Spell:
harvest.treehouse.finance/?wallet=0xbefe…Counterparties on @ribbonfinance are repaying their loans, so depositors can redeem deposits:
/8
— Treehouse 🎄 (@TreehouseFi)
Nov 10, 2022
Also, come on, man.
In case anyone was confused why Kevin O’Leary thinks SBF is such a good guy. — it just came out he had a $15mm dollar deal.
— Coffeezilla (@coffeebreak_YT)
Dec 8, 2022
Here we go again...
Well, they made two National Treasure movies, so I guess it only makes sense.
We are gonna buy the Constitution! (again)
But this time we will win! (📜,📜)
Here's the story on how we come back stronger, faster, and smarter 🧵 👇
— ConstitutionDAO2 (📜,📜) (@WAGBTC)
Dec 7, 2022
Have you been scoping out the icy.tools Learn section?
We have some stellar guides and resources for learning about all things NFTs. New guides are added weekly.
Pretty sweet, we know.
we speaking facts 💯
— icy.tools - NFT Tracking & Alerts (@icy_tools)
Dec 8, 2022
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