Velocity: decentralized derivatives built on Ethereum | Hacker News Reader

Velocity: decentralized derivatives built on Ethereum

velocity.technology

48 pointsmoeadham12 comments

The article skips over the biggest risks of running an anonymous market like this.

1. How do we know the pricing feed is not tampered with. If Bitstamp takes a huge position in this market they can make it so that they win.

2. The 'trusted oracle' velocity can also take positions if it sees a whale opportunity and steal funds.

As an aside if you have a trusted oracle then there's no need to use ethereum. You can implement all of this on the Bitcoin blockchain.

Unfortunately I think the only relevant assets to this kind of system are on-chain assets.

It's not decentralized if there's a trusted oracle.

hmmm. this seems wildly unneccessary. derivatives are complicated finacial products, why do they need to be introduced into an ecosystsm that is complex by itself. also, on mobile (presumably also on the web) it just says derivatives built on ethereum and a link to the white paper. no idea what this does/use case. might be wise to put up a but more info.

> a link to the white paper. no idea what this does/use case

From the white paper:

"Velocity is an automated system for hedging risk on asset prices. It allows anyone to establish and participate in a marketplace on publicly accessible price feeds. The platform enables hedgers and speculators to take part in a market that reduces the threat of systemic risk."

Hedging against exposure to fluctuations in asset prices is very useful and necessary to many businesses.

right. not to be unkind but i follow ethereum and i dont have time to read every whitepaper that comes out. unless there is a good website that explains how and why, it doesn't matter what the technical details are. i skimmed the whitepaper before i even posted, its just that when twitter/facebook ect launched or even simple bank or wealth front for something fintech they weren't:

* send text to internet, read whitepaper.

* banking, read the whitepaper

* easier investing, wp

they explained what they did, which was not only obvious because they were way more traditional, but neccessary.

so i don't care about another derivatives play in the space that didn't put a what we do section in

edit: if i have to read your whitepaper to figure out why i would use your product you lost. every blockchain company releases a whitepaper, but they need to build community and security. id think it was astroturfing/sabotage if not for the 1990s

No need to explain, just yet another scam on top of bigger scam called Ethereum.

Maybe you're being downvoted for your blunt pessimism, but I think this is the most likely endgame. Complicated old ideas on complicated new technology by untrusted and unknown entities. What could go wrong?

Downvoted for the lack of substantiation to the pessimism, I believe.

Someone should invent a blockchain to handle the risk associated with that :p

Impossible to get content.

There's a "Download the Whitepaper" button on the site which leads to this PDF:

http://velocity.technology/doc/velocity_whitepaper.pdf

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