I voted yes on @compoundfinance proposal 032. This proposal would distribute COMP to offset losses incurred by liquidated DAI positions. etherscan.io/tx/0x2dc20d2e5… I thought about this a lot over the weekend, and while I expect the proposal to fail here is my reasoning regardless.
Factoring in all risk @compoundfinance is probably the defi platform I trust most. Excluding SNX there have been times when 50% of my crypoassets have been on deposit there. I think it is one of the safest places in DeFi you can put your funds.
However, there are risks, and liquidations due to anomalous prices are foremost among these. The reason I voted yes is that I want to ensure there is skin in the game for all COMP holders, so they are hyper aware that the funds on deposit are at risk, and they are responsible.
Right now there is indirect alignment between COMP holders and depositors, while this proposal sets an aggressive precedent I think it is one which is unlikely to be repeated in the future if all Compound stakeholders are aligned. This is also a good initiative to restore trust.
The final point I will make is that I would highly suggest the Compound community at least discuss with @chainlink, the possibility of using their oracles as a backstop. And I say this as someone who holds no LINK, but as an SNX I am holder extremely aligned with CL security.
I would also ask the link marines not to brigade this post, it won’t help further the conversation and will likely hinder it. Let the process play out, and we will see whether we can make any progress on this front. If not that is fine too!
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1. L2 migrations and attempts to consolidate around a solution will take up most of the year, fragmentation and forks will ensue across different scaling solutions. Basically what a lot of VC’s imagined in 2016/17 but their L1 bags will still end up worthless.
2. 1559 will be a game changer for the Ethereum community. The wealth effect will dwarf that of Bitcoin and since many ETH holders are builders we will see a mass proliferation of new projects as these gains are reinvested in the ecosystem.
3. UX will improve massively, we have the components but they are just now being stitched together. @austingriffith will keep being a mega-chad single handedly pushing us forward.
Been ruminating on this for a while, but few events really drilled it home recently. I’ve been lucky to have had input into the design process with some early stage projects lately. It’s one of my favourite things. But it has also reinforced why crypto is hard.
We are so early that the solution space is still massively unexplored. It feels a little like after the App Store launched and all of the sudden startups had access to this incredible platform on which to build. Ethereum is like that but amplified 100x.
You can do anything, and that is both incredible and petrifying. Because the freedom comes at a cost, it is really easy to drive off a cliff without even realising it. So many people try to optimise for certainty in planning.
Do you like weird origin stories? You do? Good here is great one.
Early August I get an unsolicited email from a purported SNX holder. This happens pretty regularly, no idea how they get my email, probably @garthtravers’s fault…
So I was thinking it was a pitch, which it kind of was, but with a twist, it was pitching Synthetix to take an idea for tranching risk in the debt pool. I had actually been thinking a lot about risk swaps at the time. Probably withdrawals from @matt_levine being MIA.
Thus the concept was super interesting to me and I was confident it could be taken and rolled out in a generalised fashion for a bunch of projects, my response “I have negative infinity bandwidth right now lol, but if someone pitched me this idea I would 100% fund it…”
Hearing about some messages saying essentially “oh noes, Kain is not in control of Synthetix anymore. Panic. Flee.” I guess if you are in the project for this long and you still don’t get it you probably should flee. But in case you are just a little dense I will spell it out.
The new governance structure gives you all of the good stuff with none of the bad stuff. With minimal command and control overhead every core contributor has the autonomy to go out and execute.
Not only that but it’s self organising and self correcting. We just removed a core contributor on Friday based on feedback from others in the project. I say we but I actually had no idea it was happening until it did. It’s bleeding edge but it’s working.
Here comes a long and meandering thread about markets, competition and social norms, with some personal history thrown in. I’ve been thinking about what precipitated my interaction with @sgoldfed yesterday a lot and I have some thoughts.
I think the first thing to clarify is that my “nothing is even close” comment was aimed directly at competing L1 chains, for ETH scaling we’ve picked the OVM and I’m confident they deliver but if you are building something on Ethereum we are cool. I support you and wish you well.
Second, I love the Ethereum community and the whole flowers, rainbows and unicorns vibe. I think we should all aspire to be more collaborative at a deep level. But I also believe in markets and I think people in the ETH community are privileged to be able to ignore them.
I’ve had a few pings about the @kucoincom hack over the weekend, just to save my DMs from turning into even more of a dumpster fire than usual, here are my thoughts. They are my own, and do not represent the collective views of the @synthetix_io community, because obviously lol.
So we heard there were anomalies within a few minutes of the news from a number of people who track on-chain movements closely. It seemed ~500k of the ~1.5m SNX on kucoin was in a suspected hacker address already. Kucoin said they would be making an announcement shortly.
When I heard Kucoin was planning to cover the ~150m loss from insurance I was a little skeptical. I have some experience insuring tail risk from working with a client of @Blueshyft a few years ago. There are not many people out there who will write cover this large and weird.