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Economic Analysis & Observation on Secondary Financial Instruments in Algo Stable Coins
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If an attacker gets control of one of the single sig addresses they can take the coin from the single sig only. They would need two keys to get all of it. If they got control of two then they could take everything only if they knew your multi-sig derivation path. If you left it default it would be easier to get the coin. Usually it is good to have two keys in two different states if you are in the United States and the other you can keep in a safe at home or give it to a trusted friend or family member to hold on for you. An extra level of security can be encrypting three microSDs and putting a seed on each and if you wanted to be paranoid put each in a Faraday bag to protect against ESD wiping and EMP attack.
Looking at the original report, I don't get it. They claim there's on-site water use in the form of air humidification. Why the fuck would you want somewhere full of electronics to be humid? The only reason I can think of is ESD, but that seems unlikely given how little of a problem that is in modern electronics. Does anyone know of any datacenters that are being deliberately humidified?
Broadcasted on 17 Aug 2020 05:33:56 GMT+1 You sent it to this address ; 33hSG2ESD5ju2nosfTCc8L6WDtxmphzdQb
It went to 33hSG2ESD5ju2nosfTCc8L6WDtxmphzdQb and it is unspent it was worth about $10k when it was sent. Another wallet perhaps?
More info here: https://generalbytes.atlassian.net/wiki/spaces/ESD/pages/2885222430/Security+Incident+March+17-18th+2023
Because they are irrelevant. If a major western country made that move then there would be a legitimate case for enthusiasm. No one hears about El Salvador, they have zero impact in the world, zero influence. People thinking El Salvador taking up BTC would herald a new financial movement were delusional. The only reason people keep hyping them up is because they want others to buy in and raise the price of BTC and Crypto in general. Your post includes tourism. Let's be real, you aren't going to holiday in ESD, I am not going to holiday there. The vast majority of people on this Reddit would not go. Talking about percentages for ESD means little. If the country had 1 Tourist for 2021 then had 2 Tourists in 2022 that's a 100% increase in Tourism!
Just a comment.... Undersea cables are generally fiber optic. FO is immune to ESD at all levels. There are electronics interfacing the FO cables which are susceptible, but easier to shield as they are a small component compared to an entire cable running hundreds or thousands of kilometers.
Most of failed stablecoins like DSD, ESD, BAC, etc. never repegged. People knew the risks.
It depends. In the past we've seen a lot of artificial yields from token inflation and incentive schemes. These weren't necessarily scams but not sustainable. In summer and late 2020 into early 2021 unless I was getting yields in the 1000s APR I wasn't interested, and in some cases, a lot, lot higher. This was obviously risky, and short term, but there were instances when one would double their money in such a short period of time it quickly became a free hit if you removed your initial (particularly the very early algorithmic stablecoins like ESD and DSD that were sometimes paying double digit % every fours or so). Crazy times. I still have a few million DSD somewhere, now most definitely not pegged to a $1! I'm not sure we'll see that again, but it's crypto, so who knows. At the moment, yields are rock bottom, especially those tied to actual substance vs a printing press or incentives. On lending protocols, you're getting very low yield, because there's little demand for borrowing. When things pick up, those yields will pick up again, to what level, well, who knows. In the past these substantive yields (often partnered with incentive yield) have clearly been upwardly influenced by the amount of leverage sloshing around, so that may be more muted in future (who am I kidding...) There are some decent yields around, with varying levels of risk. Some pools attached to defi trading platforms, whose yields are mostly/all from fees, are worth looking at because they're still getting decent volume - but only if you can understand the risk to capital and the mechanisms. Eth staking (post merge) promises sustainable yields mostly paid out of fees, but ofc dependent on blockspace demand. With last years demand, would have been something of the order of 5% to 10% (dependent on assumptions of how much eth is staked). With current blockspace demand obviously lower. There aren't a lot of protocols that are actually making good money and channeling that back to token holders, but those are the ones to shortlist.
Many of us were warning about UST but got shouted down by the shills. I personally had no interest in Terra until they started buying BTC ~60-90 days ago. But I knew about numerous algo stables that failed (eg ESD, Basis, DSD, Iron) and many on crypto Twitter saw the LFG as a systemic risk since all crypto is correlated to BTC. And the 20% APR looked like a matrix scheme. Still, I don’t know anyone who expected it to unwind so fast. Interestingly, almost all of the shills I interacted with have deleted their comments. A couple were relatively smart but if you dig deep enough they would tell you to read the white paper.
I think this comment shows that you lack an understanding of the many ways in which coins, tokens and projects differ. This specific event, a death-spiral, is one that algo (and/or under-collateralized) stable coins are especially vulnerable to: hence the history of coins such as Basis Cash, Iron Finance, ESD, etc. These protocols are a very all-or-nothing sort of structure. And now Luna/UST has followed the same path. There's not doubt that other projects/tokens/coins may suddenly dip, or even trend down forever. But most other categories of project are inherently more stable, or are at least less at risk of this sort of death spiral type event, than algo stables are.
>1 UST is actually only worth like 0.72 1 UST is exactly 1 USD and it has never de-pegged down to that value. Chainlink shows the most accurate data around as far as Oracles go and it has stayed this way for a vast majority of the past year or so. Also, what the heck kind of wording is "like 0.72"? >So this is a huge deficit, the elephant in the room that no one talks about Dunno who this guy's circle of friends are, but this is literally *the* most-talked about topic in all of Terra outside of UST death spiral risk. This is why TFL has replenished it 2x already. ​ >One can argue that Anchor Protocol is no different than the infamous DeFi 2.0 the high APY projects like Olympus DAO OHM (>900% APY)and Wonderland Money (>80000% APY), both are ponzi-schemes according to many people. Seriously? "One can argue"? Well, where's the argument? "According to many people"? Who are these people and what's the proof that they are the same? Additionally, where is the proof that Olympus or Wonderland are even Ponzis? Olympus introduced protocol-owned liquidity, a quite novel idea in DeFi and is still around today, albeit the significant drawdown in its token. APY payouts from these rebasing projects are derived strictly from emissions and game theory whereas earn rates from Anchor are, as the article finally got correctly, from borrowers' interest rates + collateral staking yield + yield reserve. ​ >Sooner or latter there will be a bank run like what happened to USDN and Wave today. Uhhhh, USDN kinda recovered and there was no bank run. Also, it's been almost a full year since the infamous "death spiral" of UST when it was proclaimed dead after the May flash crash and yet here we are. You can't just say bank run and not lay out the foundations as to how it will happen, especially now with an exponentially higher network effect on other chains and BTC backstop. Repeated pointing to ESD, Basis, Iron doesn't count since they only accomplished half of how an algostable should work. ​ >this is a Call to Change on UST to avoid future systematic failures on the #DEFI space Anchor Protocol is not UST and UST is certainly not only Anchor. Also, what's the systematic failure here when it's clearly working as designed right now? Terra uses Anchor as its loss leader and a marketing tool to incentivize users and bring eyes to the ecosystem. TFL has deep pockets if need be and I assume it might get topped up several more times as necessary while Edge Protocol, Mars Protocol or other money markets get ironed out. With the addition of 4pool, liquidity at the peg will be even deeper causing it to be more stable even on very large swaps.
It’s the features of the protocol for that blockchain that will make crypto economically viable in the future. The features that will attract developers to come in and want to create the future apps the same way we use reddit now and how this was spawned from the combination of apps that failed in the past. It won’t disturb, but it has to integrate and seamlessly for the transition to be smooth for the old to be with the new. I can’t be, oh we have to use polkadot now so we change our whole infrastructure. That doesn’t make sense and would cause more damage than harm. We are missing key elements in blockchain for this to happen. For one, blockchain is not interoperable. Sure we have bridges yadadada, but there’s no one set standard for each blockchain to communicate. Cough*** (quant) the same way the internet has tcp/ip and bred what we have today, blockchain needs that. So rn we are still in the intranet stage of blockchain instead of the internet. But that will come with proper regulation. You better make sure your blockchain holds the same values as the ESD (economic sustainable development) goals for the future. If you consider specific tokens as long term, better look up the goals of the future and if your coin aligns with that. Right now it can’t be fully adopted because there’s no clear regulation… at least here in the US. But the CBDC will spawn a new set of use cases for certain coins to thrive. Regardless, some coins are being used for utility across the world. Most being piloted, but slowly but surely it’s coming.
USDC is fiat-backed, no? ESD is algorithmically pegged to USDC. Maybe you are thinking of UST or AMPL being algorithmic stablecoins?
Actually the whole thing is unique. Check the whitepaper and codebase. Its 100% original work. You might be referring to ESD which was the inspiration for this project. They wanted to fix the issues that caused it failure and so far its working. DeFi actually needs this and this project is the only one with a chance of actually making it work.
Algorithmic stablecoins are highly experimental at this stage. Beware the fate of ESD and DSD. If you want to learn more about the theoretical underpinnings of algo stables, read this: https://www.aier.org/article/algorithmic-stablecoins/
Yeah, it sounds like you aren’t doing anything wrong in the slightest. I just replied about the ESD earlier because most people don’t know about it, and assume they can sell for a loss and immediately rebuy, but claim the original loss. That can put people in a very bad situation.
SGT TITAN GASPAY ESD ELT why do I do that.
I can tell you what is not DSD , ESD.
ESD with some interesting price action today!
I, and my colleagues couldn't agree more on the need for DeFi to take over! We are a group of people coming from various domains revolving around crypto and finance. We believe that algorithmic stablecoins is a concept that holds immense merit and is achievable in practice today. We have been working on a new project that aims to deliver exactly that. It is based on the (impressive) work by ESD, and includes a strong suite of incentives that have allowed us to maintain the peg thus far. We would appreciate it if you could check out our project here: asstoken\[dot\]finance
Magnetic Storage would be at risk but majority of devices not too much as most have ESD protection baked in the chips. In summary, it wouldn't kill all cryptos no. But it would disrupt the entire world in some degree but probably not as much as you would think.
And keep the device in an ESD bag to help shield from any electro magnetic pulses for good measure.
Does anyone know how algorithmic stablecons like DSD (dynamic set dollar), ESD (easy set dollar) etc work? Since ETH fees are so high, I wasnt able to experiment with these, but a week or two ago, i bought 5 BoltShare of Bolt Finance ($60 each for a total investment of $300) and staked it in their Dapp, and it has been generating almost $12 Bolt Dollar (1 Bolt dollar = $1.13 right now) per day. I have already got $100 in bolt dollars by staking the shares. This kind of return is just crazy
Through sheer accident/luck, my biggest might be badger and digg. Before gas got nuts, I was enjoying experimenting with all sorts of tokens, if nothing else, than to just learn about all the cool and/or terrible ideas that people were trying to build. Examples include ESD, DSD, 0x, FUN, UNI, and loads more
As the market cap goes up, the amount of coins you have goes up too. So the market cap is currently 500k and for it to 150x it would have to go to 75 mil which similar projects such as DSD and ESD have done