The central challenge of DeFi: in order for it to interface with the rest of the world, somewhere there has to be an oracle--some person or institution that determines the pegs/marks/expirations/etc.
DAI, REP, and other DeFi derivs have the same problem.
medium.com/coinmonks/how-
Conversation
Funny how the only successful part of Ethereum so far is the trust-based erc20. No need to be afraid of trust and reputation, they can be combined with decentralization. For all other purposes there is $veo
2
Think main challenge is that defi has to overcollateralize as an inherent characteristic of the system, which is inefficient relative to fractional reserve systems.
1
3
Replying to
That's definitely a lot of it!
But even with that, they're reliant on some source of 'truth'--ETH/USD prices for DAO, results of events for Augur, etc.
1
4
Show replies
Good thing you guys made it possible to long the decentralised oracle standard with maximum leverage