Hope you dumb fucks following the hype train are ready to be DEFInanced when the bubble pops
Defi is a bubble and Ponzi
Robert Butler
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Christopher Sanders
flare hasn't even been released yet and flare is DeFi. You are talking about the alt coin bubble, not the DeFi bubble. DeFi hasn't even started yet.
Joshua Sanders
Can you elaborate? What is flare and where do I read about it?
Chase Jones
>implying this isn't what central banks have done for centuries
Hunter Sullivan
Cope. Defi investors are realizing how much money (((intermediaries))) have been stealing from savers. Look at us, we are the bankers now
Owen White
has anyone taken a loan out on aave using linkies as collateral? what if i used 4k to take a 2k link loan, what happens if it pumps? how do i keep my health factor up if it dumps?
Justin Roberts
Your pic related is what banks do everyday. It’s that easy to be a banker and make money, which is why the Jews hate crypto
Camden Nguyen
flare.ghost.io
You have two different agents. One wants a loan, the other is the one who wants dividends on what he loans. We will call them loanee and loaner.
The Loanee stakes XRP + loan fee as collateral to the flare network, and the loaner stakes his spark as collateral. This creates FXRP, which is loaned to the loanee. This way if either party backs out, the other party doesn't lose anything. The FXRP can then be used in smart contracts. The benefits are that the loanee gets liquidity and the loaner gets dividends from the loan fee.
That's the base system for the creation of FXRP. It's going to be used for foreign exchange, mortgages, loans, options, etc.
Its also going to be completely interoperable with all digital assets, and you will be able to code in any language for the smart contracts.
and its going to have all the benefits of XRP since its a utility fork, namely the 4 second transaction times, microcent transaction fees, and scalability.
And its not proof of work or proof of stake since its a turing-complete federated byzantine agreement network.
Nolan Anderson
listen anybody that is buying coins other than bitcoin already don't care that they are buying scams about to fail, DEFI is just the next hot ticket to lose all your money
Ian Ramirez
you might not realize, but that's literally how the current financial system is used, except it is impossible to do fraud here because instead of stupid human fucks giving credit scores to loans/loaners, it is all autoconfirmed via smart contracts. when stupid fucks on top need to get liquidated, they will.
this is actually really healthy and incredibly bullish for DeFi as these kinds of systems go exponential. there will absolutely be bubble pops in future wrecking tons of people, but only just enough. it won't go down like 2008 nor will it be "saved" by the government from those little pops
this is basically how economies work and is a sign of adoption
Hunter Myers
he's right, you know
Easton Carter
What you're describing is just the yield farming distribution method, it's not what DeFi is. Just pretend it was all VC presales and ICOs, do you like what DeFi promises now?
Nolan Lewis
People actually use this stuff?
Jacob Ward
Finally someone has explained it easily to my simple mind.
Thank you user.
You are a blessing.
Sebastian Lee
Retarded post, why would you compound two loans? Each has a collateral ratio that's below 100%
Gabriel Walker
This, OP is a brainlett. We are playing (((their))) game is all.
Daniel Martin
So invest in ARPA before the DeFi stuff releases?
Ian Flores
If you use Link to take out a Link loan, your health factor will always stay the same because the collateral and loan go up/down the same amount because they're the same. It would also be pointless to do lol.
If you're talking about taking out a DAI/USDC loan, using LINK as collateral, to buy more Link, then in that case your health factor would be reduced if LINK dumps, so you're better off not borrowing more than 50% of the max loan amount.
Gabriel Taylor
I said the same thing many times and nobody seems to care.
Hope all the fags gambling on ponzi scams end up homeless.
Landon Nelson
Why would it be pointless to borrow link with link as collateral? Sounds like free linkies besides the interest rate paid.
Cooper Williams
I don't understand how someone can take out a loan using money as collateral. If I need $10,000 for a project and I put up $5000 as collateral to get $10,000, why can't I just walk away with my free money?
Caleb Taylor
You typically have to put up 150-200% as collateral so you got it backward. If you put up 10000 and walked away with a 5000 loan, you’d lose the 10000
Ryan Ramirez
Because they'll take you to keleros court user. You can't hide forever.
Joshua Ramirez
it‘s locked up in a smart contract and you are overcollaterizing the loan of which 75% are available to use
Jayden Gomez
>deposit $5000
>borrow $2500 in venezuelan pesos
>sell for dollars
>deposit $2500
>borrow $3500 more dollars in venezuelan pesos with that
>sell for dollars
>deposit $3500
>hope venezuelan pesos don't go up or you get liquidated, get free money if they go down
Gabriel Miller
Why get a loan and not just fucking use my collateral then? WTF IS THE POINT?
Evan Watson
You need to repeat that a few times to borrow $10000 at once if you actually want to spend it, but that's the gist of it.
Henry Sanchez
Why would I need a $5000 loan if I already had $10,000?
Nathan Richardson
This shit is cool.
Jaxson Baker
I don't see the problem. If someone can't pay back their loan the collateral just gets put up for sale and someone gets cheap cryptos.
Dominic Rivera
you have to pay back whatever you borrowed. whenever you borrow something you're short it.
Brody Williams
i guess if you have 10k in bitcoin, and don't want to sell bitcoin since it'll go up, you put in a loan for 5 thousand dollars in USDT with the 10k in bitcoin as collateral, and then you buy 5k more bitcoin with it, and when bitcoin pumps you can turn that 5k into 10k, return the 5k from the loan and get your 10k (now 20k) back out
sounds good for leveraging longs
Mason Lee
pink ID confirms
Andrew Garcia
Now I get it. Thank you.
Easton Thompson
You gotta pay back the loan in LINK. AAVE loans are only worth it if you borrow one asset and transfer into another as a way to either long the asset transferred into or short the asset transferred out of.