I write this post under the impression of listening to the latest Chain Chatter Podcast with TheyCallMeDan, YabapMatt, and Khal.
If you haven't seen it, it's worth watching/listening to the recording:
There are multiple points one can drive home after this roundtable, but right now I want to focus on one topic that was brought up by TheyCallMeDan after Matt had to go.
And that is the major issue Hive has with centralized liquidity and which constitutes the main attack vector on Hive.
The problem became obvious after hardfork 26 when the exchange with the highest transaction volume for HIVE (Binance) disabled deposits and withdrawals (that's normal), but they remained like that for a very long time. I'm not sure if they are up right now, I haven't checked because I rarely use Binance these days.
Many were affected by this, not being able to either buy HIVE or sell it via the route they were accustomed to, and one of the few ones available, when we talk about centralized exchanges.
Even Splinterlands was affected - if I'm not mistaken - in the process of selling GLG packs. I didn't follow the matter closely, because I wasn't interested in buying GLG packs, but I saw at some point an announcement in their discord that they had to temporarily allow purchases with other cryptocurrencies, where initially only purchases with HIVE were permitted (if my recollection of the announcement is exact).
Having solid onramps and offramps is critical for the future of any crypto project. Even more, for an entire ecosystem.
TheyCallMeDan proposed that we should make it a priority to have a true DEX on our base layer, to eliminate this attack vector. Khal rallied behind this idea also.
Some people could say we already have a DEX, and we can trade HIVE for HBD and vice versa.
That is true, and it is a great thing that we have it.
What the internal market doesn't offer us is exactly what's missing from that name: external routes. A way to onramp and offramp from the Hive ecosystem in a decentralized, unattackable manner.
I definitely see a need for a true DEX on the base layer of Hive.
But I believe one of the holdbacks that need to be overcome is the oracles.
Who will play the role of the oracles in the decentralized setup? Do witnesses want this responsibility? Not all witnesses provide a price feed for HIVE or not often enough. What will happen if more coins would need a price feed for our DEX?
There is the option to use external oracles. But if they aren't truly decentralized and reliable, they can become the target or the source of an attack themselves. So, we would trade one potential problem for another.
Posted Using LeoFinance Beta
~~~ embed:1585883909069234177 twitter metadata:MTQxNTE1NTY2MzEzMTQwMjI0MHx8aHR0cHM6Ly90d2l0dGVyLmNvbS8xNDE1MTU1NjYzMTMxNDAyMjQwL3N0YXR1cy8xNTg1ODgzOTA5MDY5MjM0MTc3fA== ~~~
The rewards earned on this comment will go directly to the people( @mypathtofire, @rzc24-nftbbg ) sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
Without a doubt we need to stretch things out. The work of Leofinance is a good step. We certainly need more derivatives.
Posted Using LeoFinance Beta
I agree. Khal has done a great job adding Hive-related derivatives on BSC and Polygon. But even he thought a base layer DEX would be great for Hive.
All Splinterlands on-ramp are all down. Except HIVE and HIVE tokens.
I didn't know that. Even Paypal for those with KYC?
Important thing that we need, thanks for bringing this onto a post!
Posted Using LeoFinance Beta
Yes, sometimes normal procedures (disabling transactions on exchanges during forks) reveal issues that need to be addressed.
we definitely need this soon; and I guess with p/bHIVE/HBD we already have it to a degree
@tipu curate
Upvoted 👌 (Mana: 17/47) Liquid rewards.
We do, but that's a drop in the ocean. And I believe we should have this capability on-chain as well if that would be possible technically.
Binance is still down which is crazy.
Yes, it is. If that's not a strong enough warning sign, I don't know what would be.
Warning of how risky the exchange is or warning for Hive? Do you think it's deliberate?
I've rerouted through HE, but I can't imagine how much business they losing.
I don't think it's deliberate. But when you see something like this you need to understand what will happen if it will be deliberate at some point, if we don't build strong alternatives.
Yeah, it's good to have choices.
That would be great way to solve a very pertinent problem. Allowing users the ability to trade tokens at all times. Binance is already taking too long.
I'm not sure Binance is doing something different than they have done in the past during hard forks (we had two of them, consecutively). But that shows us the power Binance still holds on us, and that we need viable alternatives.
Indeed. It is during this times that we realise where our dependencies are and how they affect us.
So I am thinking about other alternatives out there to buy HIVE since #HIVEPUD is just 3 days away.
Posted Using LeoFinance Beta
Yeah, that's a mess. You could buy BNB on Binance, transfer it to BSC, swap it to bHive, and unwrap bHive as HIVE. That's a longer route, with higher fees, but it's an option.
I'm not sure what are the conditions on other smaller CEXes that support HIVE and fiat at the same time. Maybe one of them would be cheaper. But I haven't purchased crypto with fiat in a while, so I am not well informed on that.
Wow! What a mess indeed! Anyhow, I just wish that before #HIVEPUD, everything on Binance will return to normal. If not, I have to try that swapping and unwrapping. Thanks for the info.
Having a true DEX is nice but wouldn't it be troublesome to convert into fiat? After all, fiat requires a bank or some financial institution to convert them and I find that it will be tough because those are weak points that can be hit by the government/regulations.
Posted Using LeoFinance Beta
Not necessarily fiat. That would probably be an issue. Just other coins (bitcoin?) we can then use as on or off-ramp.
I've just seen a survey by Hive Keychain, where one of the questions is about it becoming multichain. That would be another very interesting solution. A second-layer solution, which would go around some of the issues of having this on the first layer.
!BBH
!ALIVE
!CTP
P.S. Came here from ListNerds
Posted Using LeoFinance Beta
@gadrian! Your Content Is Awesome so I just sent 1 $BBH (Bitcoin Backed Hive) to your account on behalf of @bradleyarrow. (15/50)
@gadrian! You Are Alive so I just staked 0.1 $ALIVE to your account on behalf of @bradleyarrow. (5/20)
The tip has been paid for by the We Are Alive Tribe through the earnings on @alive.chat, feel free to swing by our daily chat any time you want.
I think they want Hive to have an unattackable option (or with fewer vulnerabilities). Might not be something easy to do at all.