Conversation

SBF
@SBF_FTX
Replying to
@SBF_FTX
16) The data is pretty clear here: The DeFi coins in CREAM pose a greater risk than FTT. Much, much greater. So much that FTT blowout risk doesn't really register compared to the other risks in DeFi right now.
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SBF
@SBF_FTX
17) If you're worried about a 60% move causing liquidations in CREAM: This has happened about once/month for the DeFi basket together recently. FTT hasn't been at a 60% different price in 2020.
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SBF
@SBF_FTX
18) So, FTT is probably less risky than the rest of CREAM, but it might get banned. It'd better be useless for it then, right?
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SBF
@SBF_FTX
19) Well, it *is* less useful per $ than many of the other coins. But I think the community is not correctly understanding the implications of banning that much of the collateral. a) CREAM TVL down 30% b) CREAM borrowing down 40% c) Interest earned by lenders down 40%
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SBF
@SBF_FTX
20) No one will use CREAM for large size again -- it loses a lot of its future value. (and, of course, some partners, liquidity, etc.) I think this probably nukes something like 20% of the protocol's value.
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SBF
@SBF_FTX
21) That's a lot! Giving up 20% of value based on an emotional, error-laden tirade to a single large voter for one of the lesser risks of the protocol. Because some people don't believe in borrowing (on a borrow-lending protocol, none the less!)
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SBF
@SBF_FTX
22) So, yeah, this is a pretty crap-tastic proposal. That being said -- I think some variants would be reasonable! Want to decrease collateral to 40%? Want to cap any single asset at 20% of the total supply? IDK if those are right, but they're totally plausible.
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SBF
@SBF_FTX
23) But this one-- --this one throws the baby out with the bathwater. Without having done its homework.
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SBF
@SBF_FTX
24) If that's what you want for CREAM--fine. But also then why use CREAM and not Compound? If you want a small, neatly curated list of assets in a static system, that's what Compound specializes in. In CREAM, I see a dynamic, broader protocol, for better or for worse.
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SBF
@SBF_FTX
25) But, idk, in the end this is the community's decision. Or, you know, 0xDa495C2Ab0a91623564126778D5AB20fA87C1DFc's. Either way.
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Jack’s brother Pepe
@sparrowpepe
Replying to
@SBF_FTX
and
@SBF_Alameda
I think the problem here is perception. You control a massive amount of a single coin. Enough the you can borrow all of the liquidity on cream and sell it all short. For people who finally “have a say” I think it’s natural to be against being controlled by whales.
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Robin
@adz122
Replying to
@SBF_FTX
and
@SBF_Alameda
How about being against a coin that's very much centralized? How about the fact that it was added to CREAM because of back alley deals (ie nobody but Alameda asked for it to be listed)
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