like not saying your point is crazy here--it's not!
just that you're overplaying your hand a little bit, like playing as if your point is 2x stronger than it is
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I really don't think I am, 25% of the entire $FTT is on Cream, that's 39x the daily volume and 40% of all collateral on Crean
No matter how you paint this, it's incredibly risky for users, depositors are already having issues withdrawing their funds due to a lack of liquidity
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guess we're going to have to agree to disagree then, not saying you're totally wrong here just that there's nuances to it, but if you're not willing to give any ground here then :shrug:
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so:
1) uniswap was a bad datapoint
2) otc market is really deep for FTT
3) I personally am happy to buy a bunch
4) coins with buy/burns etc. tend to have away deeper liquidity
5) there's a flip side to this: the more you cut down on lending, the less usage the protocol gets
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Hear both sides, Only question I have is, Hypothetically if $FTT had 50% drop in price, how cream will handle this?
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so I think a big thing to think about here is --
if FTT drops 50%, what happened to the rest of crypto?
If everything drops 50% then it's fine b/c both lending and borrowing sides dropped the same.
Historically FTT has a low-ish beta, so an overall market move wouldn't do it.
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<3
and to be clear -- I do think has a decent point! I don't think it's crazy.
But also I think that a correlated DeFi move is scarier -- that's what could blow out the whole system.
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like you could see all DeFi projects blow out 5x in either direction, and every yield/amm/borrow-lending/etc. platform get stressed in the same direction at once, getting like $5b of one-sided flow in volatile correlated assets.
CeFi doesn't solve this. DeFi doesn't solve this.
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I think that the only things that solve it are:
a) accepting the risk
b) HUGE liquidity ready even in volatile markets
(b) is hard but super valuable.
it's way harder when it's most important. E.g. BitMEX is usually huge liquidity -- except on 3/12, when it matters most.