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Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
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Annnnnnnd it is gone...
Crypto lending and CEX are collapsing.
So how can we prevent the next FTX?
https://twitter.com/VitalikButerin/status/1593913471967666176
The idea of proof of solvency or proof of reserves is not a new idea.
The idea is to give users a sense of normality about how much CEX really got and can be redeemed money to their customers to avoid a bank run.
There are two ways: on-chain and off-chain.
On-chain route is to show off your cold store wallet or any wallet to demonstrate your total assets. Like Binance did.
https://twitter.com/cz_binance/status/1590055819416330240
The off-chain route is asking a third-party custodian like Coinbase to back up your claim as Grayscale did.
https://twitter.com/Grayscale/status/1593737739442200578
What Vitalik described in his view is that you may have two sets of network on the reserves.
One is owned by the book (firm) and the other one is owned by the blockchain.
From DEX perspective, everything runs on chain and users can withdraw without any approval.
From CEX perspective, assets show on the book for users to reference while users can withdraw funds without any problems on chain.
For CEX, the book value will have to match on chain data to proof their reserves are sufficient, or it will flag their insufficient reserves to against their operations.
Also, the operator of such reserves on chain cannot manipulate the funds or data.
You can read full article with mathematical back up at
https://hackmd.io/@vbuterin/proof_of_solvency
I think it is a great idea to move forward but how likely all CEX will implement is up to their discretion.
Photo by Camille Brodard on Unsplash
Annnnnnnd it is gone...
Crypto lending and CEX are collapsing.
So how can we prevent the next FTX?
https://twitter.com/VitalikButerin/status/1593913471967666176
The idea of proof of solvency or proof of reserves is not a new idea.
The idea is to give users a sense of normality about how much CEX really got and can be redeemed money to their customers to avoid a bank run.
There are two ways: on-chain and off-chain.
On-chain route is to show off your cold store wallet or any wallet to demonstrate your total assets. Like Binance did.
https://twitter.com/cz_binance/status/1590055819416330240
The off-chain route is asking a third-party custodian like Coinbase to back up your claim as Grayscale did.
https://twitter.com/Grayscale/status/1593737739442200578
What Vitalik described in his view is that you may have two sets of network on the reserves.
One is owned by the book (firm) and the other one is owned by the blockchain.
From DEX perspective, everything runs on chain and users can withdraw without any approval.
From CEX perspective, assets show on the book for users to reference while users can withdraw funds without any problems on chain.
For CEX, the book value will have to match on chain data to proof their reserves are sufficient, or it will flag their insufficient reserves to against their operations.
Also, the operator of such reserves on chain cannot manipulate the funds or data.
You can read full article with mathematical back up at
https://hackmd.io/@vbuterin/proof_of_solvency
I think it is a great idea to move forward but how likely all CEX will implement is up to their discretion.
Photo by Camille Brodard on Unsplash
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