[bouncycastle]

Instead of shorting it, you can do this:

1. Lock up your USD to USDC (get some ETH for gas)

2. Go to https://app.compound.finance/

3. Deposit the USDC as collateral

4. Borrow USDT (Tether)

5. Sell the borrowed USDT to USDC

6. Wait until USDT implodes to $0

If USDT implodes to $0 then you'll have nothing to pay back.

You can even deposit the USDC to, say, Yearn and cancel out your interest expense.

Of course, I do not expect USDT imploding anytime soon, so don't do this. Although it's often the preferred stablecoin to borrow because when it does implode, you will be lucky (assuming it goes under the peg).

[vidarh]

> 4. Borrow USDT (Tether)

> 5. Sell the borrowed USDT to USDC

How is this not shorting? Except DIY instead of a broker hiding the borrowing for you.

[byecomputer]

Yeah they literally described the process of shorting a stock. Which, to me, is the best alternative to shorting a stock that one could ask for.

[bouncycastle]

Yes, good point.

[piracy1]

Oh, this is perfect, I'm going to do this with 100k. Also, yeah it is shorting, but it's honestly less convoluted than how I have to do it on Kraken. + I get profits off staking.

Edit, did it with $500 as a test, I am arbitraging 0.5% as I took the tether I borrowed, turned it. into USDC and staked it. I am getting paid 0.5% to short Tether :O

[T-A]

USDC is now natively on Stellar, so no need to pay Ethereum's transaction fees:

https://stellar.org/usdc

[bouncycastle]

But there is no lending/borrowing market or a decentralized exchange on Stellar. Besides, when you deposit USDC to Compound Finance you will earn interest plus COMP tokens that can cover your gas fees.

Anyways, there may be several competing options coming in the future, but Stellar is just not it.

[T-A]

> But there is no lending/borrowing market or a decentralized exchange on Stellar.

I can't imagine where you got that idea.

https://developers.stellar.org/docs/glossary/decentralized-e...

https://www.lumenauts.com/explainers/stellar-decentralized-e...

Here are a few clients:

https://www.stellarx.com/

https://stellarterm.com/

https://stellarport.io/exchange

https://interstellar.exchange

https://lumenswap.io/

You can lend and borrow just fine on the Stellar network. Here for instance is Celsius' current rate on Stellar Lumens:

https://celsius.network/earn-rewards-on-your-crypto/

> Anyways, there may be several competing options coming in the future, but Stellar is just not it.

Passing judgment is best done after informing oneself.

[bouncycastle]

It looks like the game is rigged on Stellar.

All of the above exchange links that I've visited required account registration and login, which means that they are not decentralized. For the celsius, you have to download an app on your phone. Ewwww. Whatever. Claiming to be decentralized and then requiring signup is dishonest.

It looks like there is not not much liquidity. Also, the only type of exchange supported is "Limit Order", which is also cumbersome to use on a blockchain, and you would probably prefer Automated Market Maker (AMM) type exchanges once you experience them. (You can perform all the steps I've outlined in a single transaction for example)

Also, it looks like that all the assets on stellar are custodial. There are no non-custodial stablecoins for example.

[T-A]

> All of the above exchange links that I've visited required account registration and login, which means that they are not decentralized

Next you'll tell me that Ethereum is centralized because Coinbase requires registration and login.

You've been looking at clients, i.e. independently developed user interfaces to the Stellar DEX. You can interact directly with the DEX here:

https://laboratory.stellar.org/

Or you can roll your own clent. Stellarterm is open source, could be a good starting point:

https://github.com/stellarterm/stellarterm

If you prefer algorithmic trading, there is Kelp:

https://github.com/stellar/kelp

> Claiming to be decentralized and then requiring signup is dishonest.

I find it hard to believe that you honestly don't understand the difference between an independently developed client and the decentralized exchange which it connects to.

> you would probably prefer Automated Market Maker (AMM)

See Kelp above.

> There are no non-custodial stablecoins

This subthread started with your recommendation of USDC, a custodial stablecoin...

…which, lest we forget, went live on Stellaräs decentralized exchange this month:

https://www.stellar.org/press-releases/usdc-is-live-on-the-s...

[bouncycastle]

USDC was just an example, you can use non-custodial coins too. Looks like stellar only offers custodial.

Look, I get you. There is some degree of decentralization, although not fully decentralized. There's definitely a lot more smoke and mirrors there, especially when I need to register to these websites.

The other problem is that Stellars consensus protocol is not sufficiently decentralized.

Regular users may not care about that, which is fine. However, that's a crucial point for me.

[arcticbull]

You're assuming if the wheels fall off Circle will be around to pay you back.

[T-A]

USDC is audited monthly to verify that it's backed by real dollars. The reports are public:

https://www.centre.io/usdc-transparency

[arcticbull]

Totally, just a minor quibble, they don't have audits, they have attestations. That's not the same thing, it's much less detailed. I'm not particularly worried about the existence of their backing assets, however, it's just worth noting.

I was referring to the Circle entity in the event of a wheels-come-off situation.

[bouncycastle]

Which part of "don't do this" you didn't understand?

[arcticbull]

"Of course, I do not expect USDT imploding anytime soon, so don't do this" doesn't suggest anything about counterparty risk with USDC.

[bouncycastle]

USDC is an example, it's not necessary that you use USDC, there are a few other currencies that can be used for collateral and swapped in to while you wait. Let's be clear: "Do not do this" means do not do this in whatever variation.

[gomox]

Why wouldn't they be?