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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%

SBF

@SBF_FTX

Oct 10, 2020

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.

SBF

@SBF_FTX

Oct 10, 2020

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!)

SBF

@SBF_FTX

Oct 10, 2020

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.

SBF

@SBF_FTX

Oct 10, 2020

23) But this one-- --this one throws the baby out with the bathwater. Without having done its homework.

SBF

@SBF_FTX

Oct 10, 2020

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.

SBF

@SBF_FTX

Oct 10, 2020

25) But, idk, in the end this is the community's decision. Or, you know, 0xDa495C2Ab0a91623564126778D5AB20fA87C1DFc's. Either way.

SBF

@SBF_FTX

Oct 10, 2020

26) Anyway, we just voted to keep FTT as it is now. We would be happy to vote for a reasonable alteration--a moderate decrease in collateral weight, or 20% cap on a single coin! But the 'partial' option here is massively under-specified (as is the voting process for 3 options).

Replying to

and

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.

Replying to

and

Basically this. FTT is basically value created out of thin air and the fact that the creator of that scam value can use it as collateral to take out real loans is insanity.

SBF

@SBF_FTX

Replying to

@jawnbear

given this, would you short FTT if you could?

9:37 AM · Oct 11, 2020Twitter Web App

Replying to

and

Perhaps, but I wouldn’t short an asset belong to a whale that has a proven ability to move the market in his favor. A more appropriate question may be, given this should FTT be considered acceptable collateral, and if so at what percentage?

Replying to

and

No but it's a bit curious that the oldest spot market on your exchange still doesn't have an instrument to do so.

Replying to

so it's "value created out of thin air" and "scam value" but also you don't think it's going to go down in price?

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