We have seen several examples of LP rewards contracts that had the potential to be bricked accidentally or intentionally by a deployer. When you send your LP tokens to these contracts you lose control of your funds, the Uni LP wrapper does nothing to protect you!
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Replying to
What % of your $ is in SNX?
What are the odds SNX goes down at least enough so you lose 1% of your $? (Hint it's like 40% or something in the next day, crypto volatile yo.)
I claim you're being inconsistent here.
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I’m not sure that this analogy holds since I’m both escrowed as a core contributor and escrowed via staking rewards for at least another year. So even if I wanted to diversify to a “reasonable” level I couldn’t. Plus I’m also realistically liquidity trapped.
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Replying to
Oh yeah totes agree, you don't have a choice there.
But when you wake up each day, how bad does it feel that you are forced to have that position? (Or does it even feel bad? Maybe it feels like you trust your instincts?)
vs how you'd feel if you had 1/4 as much in sushi
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Basically my point is: I think in addition to one being a choice and the other forced, you _also_ feel like one is more "bad" than the other, even if they're comparable risks.
I'd guess you fucking believe in SNX so it doesn't feel like a "gamble" it feels like a strategic play
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I mean I don’t think either of them are bad, I’m in the Sushi trade as well and I’m doing a farm and hold strategy, it’s a good trade imo. But I wouldn’t put 10% of my aum into it, I mean maybe in a few days it gets better but first mover yield farming induces massive tail risk.
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Haha like 50% or something. Based, Yam, that scam from yesterday with the faked approval.
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Go under is not accurate have a contract issue would be more accurate. But it’s a matter of time before there is a catastrophic loss imo.
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Replying to
true but almost none went under in the first day or two.
which generally isn't that comforting, but at 40% APR 1 day matters a lot
Lol every second this doesn’t blow up this trade looks more and more like genius so...
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Yep, 1 parameter that should go into your risk assessment is time (one first has to find a bug & that takes time especially with a new smart contract). Furthermore money locked up usually increases with time thereby creating incentives for hackers to exploit as time goes on.
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Another should be the volatility of the collateral which should be subject not to the mild randomness of standard normal distribution but more to the wild randomness of fat tails.
Then you have smart contract risk where we currently don’t have any way to quantify.
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