1/ @compoundfinance $COMP farming pop quiz grades are in, and 68% of the class failed 🤦
the correct answer is C) "🤷 idk how 2 compound"
why? 👇
cc @rleshner @cjliu49 @jmflatow
the correct answer is C) "🤷 idk how 2 compound"
why? 👇
cc @rleshner @cjliu49 @jmflatow
2/ so the devil is in the details 👿
@aliatiia_ posted a great formal proof that walks through why the position will indeed get liquidated if BAT/ETH increases 4x instantly.
but he didn't account for the protocol level limits on price changes 🛑
@aliatiia_ posted a great formal proof that walks through why the position will indeed get liquidated if BAT/ETH increases 4x instantly.
but he didn't account for the protocol level limits on price changes 🛑
3/ "For security, price changes are limited (at the protocol level) to 10% per hour, unless a manual approval is provided by a second, offline address."
medium.com/compound-finan…
medium.com/compound-finan…
4/ so you would only get liquidated immediately if the @compoundfinance team manually approves the price change, and you don't know if that will happen or not 🎲
🤔 but wait, isn't this #DeFi? that doesn't seem too decentralized ⚠️
🤔 but wait, isn't this #DeFi? that doesn't seem too decentralized ⚠️
5/ don't worry though, this is only a temporary solution 😅
the @compoundfinance team has announced a project called the "Open Oracle System" 👁️ which aims to fix this long term!
you can read more here: medium.com/compound-finan…
the @compoundfinance team has announced a project called the "Open Oracle System" 👁️ which aims to fix this long term!
you can read more here: medium.com/compound-finan…
