Ministry of Agriculture

DeFi is new and exciting and messy. The Ministry of Agriculture demystifies decentralized finance. We have conflicts of interest. Not investment advice.

[Ministry of Agriculture @MinistryOfAg]

@DastardlyDaniel @jordan_wentzell @ameensol @SBF_Alameda People often put too much emphasis on one type of risk (centralization) and not enough on aggregate risk of different assets: https://t.co/zZTlg1aP42

[Ministry of Agriculture @MinistryOfAg]

@DegenSpartan Agreed https://t.co/zZTlg1aP42

[Ministry of Agriculture @MinistryOfAg]

@godsflaw @rleshner @centre_io @tether @MakerDAO That's fair, I'll add them.

USDC and USDT don't need to shut down to allow redemptions, though--those are standard.

[Ministry of Agriculture @MinistryOfAg]

Stablecoin risk in DeFi: a comparison of $USDT, $DAI, and $USDC.

1. @centre_io is the easiest to create/redeem
2. @tether has its faults but is super liquid
3. @MakerDAO is really cool--but DAI is brittle, and that's scary

https://t.co/zZTlg1aP42

[Ministry of Agriculture @MinistryOfAg]

@godsflaw @rleshner @centre_io @tether @MakerDAO Redemption shouldn't cost $25m, require a governance vote, be slow, prevent the protocol for protecting against price movements, etc.

[Ministry of Agriculture @MinistryOfAg]

@godsflaw @rleshner @centre_io @tether @MakerDAO Emergency shutdown:

1) isn't automatic
2) requires $25m of MKR voting for it
3) might not be reimbursed
4) hasn't been deployed historically during large dislocations
5) market movements during shutdown (which are likely given the cause!) can hurt value

https://t.co/dgfLvRk17g

[Ministry of Agriculture @MinistryOfAg]

$DAI is really cool! But it's not safe in huge size. $USDT can be awkward but it's super liquid, and when push comes to shove it can be turned into roughly $1. And when considering downside risk, that's most of what matters.

[Ministry of Agriculture @MinistryOfAg]

Many are scared of $USDT and trust $DAI because $DAI works as advertised and sometimes $USDT doesn't. But before you judge, think about how risky the advertised product is.

[Ministry of Agriculture @MinistryOfAg]

On the @BalancerLabs attack:

Not existential or fatal, but lots of work to make the platform more intuitive.

https://t.co/VNWhfi9J7O