The emergence of DAOs

"UMA is an optimistic oracle that uses economic guarantees to secure markets. Unlike mechanically restrictive price feed oracles, an optimistic oracle is able to serve any arbitrary data on-chain. UMA’s flexible oracle serves data for uses including a cross-chain bridge, insurance, custom derivatives and prediction markets among other things.The UMA Protocol also provides various smart contract templates that are automatically secured by its optimistic oracle. Among these are contract templates and integrations for creating synthetic tokens, predictions markets, "KPI options" and structured financial products."

If this is how they market themselves and try to convince others to join the ride then I am afraid this way does not really work."optimistic oracle"? They do not address any single real problem. Only marketing gibberish, the more esoteric apparently the better. No real business man and company owner that does business in the real world understands what problems this platform aims to solve and how they ensure the servicing of any contract.

Can you explain in the language of a 5 year old how any such platform ensures that an employment contract is honored and serviced? Or let's say I want to borrow money for my student tuition. How can the counterparts be ensured they get back what I promise to pay them (principal and interest)?

Sprout said:
https://umaproject.org/

->KPI Options Explainer Video
More...
 
Mazedonia said:
Can you explain in the language of a 5 year old how any such platform ensures that an employment contract is honored and serviced? Or let's say I want to borrow money for my student tuition. How can the counterparts be ensured they get back what I promise to pay them (principal and interest)?
More...

I think the idea here is that these contracts are quite well handled in the current system. New contracts that couldn't be possible before, can now be implemented. What those are, can't say I know.
 
Mazedonia said:
What does that mean?

It says about how MakerDAO works is

"To enable the process of borrowing and lending to flow seamlessly, Maker DAO uses the Maker protocol to borrow against collateral. However, unlike traditional loans, which tend to accept fiat currencies as collateral, Maker allows its users to borrow against multiple crypto pairs, which the protocol supports"

That does not make any sense to me at all. Let's say I want to borrow with my house as collateral. How does the blockchain or contract monitor the value of my house and hence whether my collateral is still sufficient to service my contract and borrowed loan? It would need to have knowledge of neighborhood sales, changes of nearby infrastructure (new proposed train station, new highway, better school, change in crime rates,....) That is what I am talking about. All those white papers and pundits only talk about how the contract can be agreed upon and that is the easy part. They don't solve the difficult aspect of the transaction. How is the contract subsequently upheld and honored. How is it ensured that the contract is correctly serviced as promised? That is what I don't understand.
More...


Short answer; not available yet. We might see some traction on that in 2022.

Digitally native fungible crypto assets are the only currently acceptable forms of collateral. Digital assets have the advantage of being "native" to the internet landscape where performance metrics are easier to quantify. Fungible tokens as collateral is the easiest to implement since they are "bearer assets".

Using NFT's as collateral is beginning to be built out which it turn will allow coupling of real world assets onto a blockchain. It will most likely gain traction at the high end art market or in a gaming ecosystem but with gracious over-collateralization since the NFT itself is the collateral.


In your example, the county recorder is essentially a blockchain (add-only database). As legal documents, when recorded, the storage medium has evolved from paper to microfiche to digital with a "certified" timestamp. Those documents can be encapsulated essentially as an NFT. (technically the nft is just a pointer)
 
Mazedonia said:
"No real business man and company owner that does business in the real world understands what problems this platform aims to solve and how they ensure the servicing of any contract.

Can you explain in the language of a 5 year old how any such platform ensures that an employment contract is honored and serviced? Or let's say I want to borrow money for my student tuition. How can the counterparts be ensured they get back what I promise to pay them (principal and interest)?
More...


Yes, you are most likely correct. Builders in crypto know though, that's the intended audience.



for a 5yr old maybe skittles will help;

 
Nobody seems to understand wtf is going on in this space. Everyone uses buzzwords coined by the 0.23% holders of 90% of crypto assets.

Sprout said:
Yes, you are most likely correct. Builders in crypto know though, that's the intended audience.



for a 5yr old maybe skittles will help;

More...
 
nooby_mcnoob said:
I think the idea here is that these contracts are quite well handled in the current system. New contracts that couldn't be possible before, can now be implemented. What those are, can't say I know.
More...

I still don't understand Ohm but I guess there's a fork called Time

Someone mentioned on a Tweet about Seigniorage and how it's giving over 300% APR, I said cool, all I need to know to ape into it

Bonds, Peg, TWAP, printing, treasuries, yield farming LP's (this at least I understand from experience), but trying to understand it's almost like the Fed and central banks and banking operations, whateverz, just give me yield and hope I don't get rugged before getting out

https://tomb.finance/


3.399b2f6c.webp
 
Mazedonia said:
Nobody seems to understand wtf is going on in this space. Everyone uses buzzwords coined by the 0.23% holders of 90% of crypto assets.
More...

There is the POTENTIAL for this to be as useful as the Internet. POTENTIAL. In some countries in Africa, people trade (goods and services for money) using their phones. This is a bedrock of their daily life. Look it up. I believe that crypto/nft/etc has the potential to become the bedrock for something in daily life as well. What that is, I don't know yet. But it has the potential.

That means that there will be a dot com style crash that will wipe out the fraud and useless shit. What remains will become the MSFT/AMZN/TSLA/etc.

I'm patiently waiting...
 
Mazedonia said:
It will never work. If humans could and would follow rules without supervision, then we would all not need a supervisor or boss. Most people get done nothing without supervision or they overstep boundaries without a corporate cop or regulatory cop watching over them.

The concept sounds interesting but like communism it makes tons of erroneous assumptions. Most humans don't behave according to what those neat white papers suppose humans to behave.
More...

There is more truth to this than you even realize, if you had actually dealt with the people in crypto DeFi.
DAOs are a complete mess whenever there are any actual real tasks & problems to resolve. It's just a dark comedy.
High IQ people also, but jesus, my faith in humanity only drops lower & lower the more time I spend in this space.
 
You must log in or register to reply here.
Back
Top