reply on: Bitcoin lending app Lava quietly shifted its custody model

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186 sats \ 2 replies \ @optimism 9h \ on: Bitcoin lending app Lava quietly shifted its custody model - Blockspace Media bitcoin

I'm still not convinced a DLC is all that different from custody: you need to be sure that the oracle will not collude with your counterparty for it to be truly custodial. But that just speaks to the nature of loans: you can't have a loan with self-custodial collateral.

I think you meant non-custodial? Regardless, you're right. There is also no point; if you put something up for collateral you literally don't own it. Same with your mortgage and your car financing.

100 sats \ 1 reply \ @Scoresby OP 9h

Yes. I've been suffering a lot of typos lately. Gotta stop typing on a phone.

Whatever the case, this makes me think that Lava's transition makes a lot of sense. But it does sound like they did a poor job of enacting it (especially if they really did present users with a screen that signed transactions without clearly telling the user they were signing transactions).

102 sats \ 0 replies \ @optimism 8h

Wait you typed all that on a phone? Amazing. I only do one-liners from the phone lol.

But it does sound like they did a poor job of enacting it

So the reason why there are regulations around how banks operate is because this forces them to properly disclose things. All of these fintech bros operating in crypto space are just dodging that kind of regulation. Imagine entrusting your funds to someone that wasn't able to make it in a regulated environment... would you? Personally I'm extremely skeptical.