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Huge advantages for both. For example, something that's only possible on a blockchain is a flashloan. This is where you can get a loan for any amount (liquidity provided) as long as you repay the full loan amount in the same block. This primitive alone allows for much higher velocities of money since value can be moved and repayed in a single block (on the order of 10 seconds).

All of the advantages of defi boil down to increases in velocity of money. For example you can deposit funds into a contract and receive a token that represents your liquidity position. You can then use this token in other applications. So now you have this composability of money which allows people to create new financial primitives.




> This is where you can get a loan for any amount (liquidity provided) as long as you repay the full loan amount in the same block.

What is the point of that?

> So now you have this composability of money which allows people to create new financial primitives.

Are there any useful for anything beyond gambling/speculation/NFT-like FOMO-powered bubbles?


>> This is where you can get a loan for any amount (liquidity provided) as long as you repay the full loan amount in the same block.

> What is the point of that?

Leveraging arbitrage


"This primitive alone allows for much higher velocities of money since value can be moved and repayed in a single block (on the order of 10 seconds)."

what can be usefully arbitraged in that time in way that guarantees no loss?


It's actually way funnier than GOP presets to be. Flashloan must be paid back in the same transaction. Since whole thing happens in the same tx, it's atomic. So you can use smart-contract logic to determine if you are actually making a profit, and if you are not - revert!


Exploiting contract bugs.


OK but why and for what purpose?


THETA->Super Hi Def video streaming https://www.thetatoken.org/

VET-> Supply Chain Authentication for Businesses https://www.vechain.org/

Are two real world examples that are starting to see adoption. Also this articles covers it well: https://101blockchains.com/practical-blockchain-use-cases/


I am an engineer for more than 12 years. I think I have a reasonably good idea of how a blockchain works.

I have no idea how these two projects are supposed to work. Who is supposed to use this if there isn't even a concise description of the product?

Judging by their Twitter accounts both of these companies have been around since 2017. How many active users do they have?


https://www.youtube.com/watch?v=hf-Op-1peZI for less formal overview https://www.thetatoken.org/ contains white papers if you want the technicals.


I think he's asking if anyone has found this useful in 5 years? Are there actual customers or is this just an idea?


A couple of things. First these are companies that are building up. They are not fully instituted. Second they have many partners that are helping them build out. As far as customers, yes both THETA and VET have customers....including some .gov customers.


Who is giving out 10 second loans and why would they do that?




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