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Comment by latchkey | Hacker News Reader

I've been participating in my first DeFi DAO project and as a 20+ year ASF member, this is literally open source v2. It is really fascinating to be part of this new generation.

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Earning 8% interest off assets that are already speculative with counterparty risk. What could make more sense?

These protocols typically have various strong incentives to prevent drops below a certain collaterization ratio.

There is a real danger that ETH/USD moves too quickly while gas fees get too high for the system to function properly and we see a lot of defi losses. I don't think this is likely but it could happen.

Only if you're just playing on ETH. There are other chains now that don't suffer from that issue.

A couple weeks ago there was a time period where there were tons of liquidations and gas fees were skyrocketing.

The counterparty risk in also in the contract itself. Remember the DAO hack?

8%? What are you referring to? The recent BlockFi FUD (or not, depending how how you look at it) news?

What I'm referring to isn't the same at all. BlockFi is CeFi. DeFi is a whole different ball game, which is a big reason why these DAO's exist.

I saw that BlockFi raised money. What is the FUD?

https://ditchblockfi.com/

It was a general example of an interest rate. I don't know what you are talking about.

Ok... cause the 8% is approx what BF is known for.

DeFi is much, much, much higher than 8%... 8% is often _daily_.

Not the point. The returns are in the 30-1000x from the initial investment.

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