Major crypto lender Celsius freezes withdrawals as markets tumble

Re:Major crypto lender Celsius freezes withdrawals as market... by tjansen on Monday June 13, 2022 @07:27AM (#31723923)

I think DeFi was an interesting idea with some potential. It seems like nobody was able to come up with a solution that found widespread use, but with the right application it might have worked. But for now, it looks like that window of opportunity is gone. Maybe with the next crypto generation...

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Re:Major crypto lender Celsius freezes withdrawals as market... by lottin on Monday June 13, 2022 @08:21AM (#31724445)

The problem with DeFi is that can't be used for financing. Financing requires seizable assets whereas blockchain assets are intrinsically unseizable. It can still be used for things like swaps, but that market isn't very large.

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Re:Major crypto lender Celsius freezes withdrawals as market... by tjansen on Monday June 13, 2022 @09:07AM (#31724999)

You could create seizable assets if you find a way to create a legal framework that allows you to hold and transfer physical or intellectual property via NFTs. If you could own the copyright to an ape picture, instead of an NFT with the URL to an ape picture, it could be actually worth something.

Trading physical property as NFTs would create a lot of possible applications. I always thought that trading-property-as-NFTs and the insurance market would be the most interesting applications for DeFi.

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Re:Major crypto lender Celsius freezes withdrawals as market... by politician on Monday June 13, 2022 @09:58AM (#31725651)

If stocks and bonds were allowed to be traded as digital NFT-like contracts than true settlement could be completed in ~minutes rather than ~days.

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Re:Major crypto lender Celsius freezes withdrawals as market... by bidirectional on Monday June 13, 2022 @08:41AM (#31724657)

Swaps aren't very large? It's very easily a trillion-dollar market even without the misleading quoting of notional as market size.

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Re:Major crypto lender Celsius freezes withdrawals as market... by lottin on Monday June 13, 2022 @08:59AM (#31724898)

Where does this number come from?

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Re:Major crypto lender Celsius freezes withdrawals as market... by bidirectional on Monday June 13, 2022 @09:20AM (#31725168)

Here's one source: https://www.bis.org/publ/otc_hy2111.htm

Reports notional as in the hundreds of trillions and market value over ten trillion.

Unless I'm misreading you and you're talking about defi swaps? Though surely the analagous tradfi market shows the potential there.

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Re:Major crypto lender Celsius freezes withdrawals as market... by lottin on Monday June 13, 2022 @12:30PM (#31727785)

These are credit default swaps. I don't know if they are implementable as smart contracts (I don't think so, but I could be wrong). I was thinking about overcolateralised DeFi loans which can be seen as a kind of swap where two parties exchange the returns of two different assets.

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Re:Major crypto lender Celsius freezes withdrawals as market... by seunosewa on Tuesday June 14, 2022 @04:01AM (#31736037)

What was the best application of defi in your view?

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