Hacker Read

VagueMag | karma 4192 | avg karma 6.52 · 2022-11-12 10:04:48

Why would the attacker move the funds to any remotely censorable coin like DAI?

themihai | karma 1227 | avg karma 1.74 · 2022-11-12 10:34:22

I think he tries any avenue available. Even if 50% is lost it's still a good trade.

VagueMag | karma 4192 | avg karma 6.52 · 2022-11-12 10:49:06

I guess I'm really ignorant of the whole DeFi ecosystem and how it works and so maybe this isn't feasible, but I would think keeping 100% of Bitcoin and Monero (even if their prices crash a further 80%) would be better than going into these very easily controlled stablecoin.

hamiltonians | karma 329 | avg karma 1.14 · 2022-11-12 11:28:43

Dai cannot be censored by

VagueMag | karma 4192 | avg karma 6.52 · 2022-11-12 11:45:40

> heavily exposed to USDC

hamiltonians | karma 329 | avg karma 1.14 · 2022-11-12 12:11:13

this is not the same as protocol level censorship

VagueMag | karma 4192 | avg karma 6.52 · 2022-11-12 12:43:08

If authorities wanted to freeze a subset of DAI, could they do so by directing USDC to refuse to back those tokens?

X6S1x6Okd1st | karma 2465 | avg karma 2.21 · 2022-11-12 13:30:30

Nope they'd have to freeze the entire collateral that Dai has (~33% of all collateral they have rn), Dai could not freeze individual addresses and almost assuredly wouldn't even if asked.

VagueMag | karma 4192 | avg karma 6.52 · 2022-11-12 18:02:19

Ok, so, "blacklist these particular addresses or we will seize your entire collateral"?

pcthrowaway | karma 5282 | avg karma 1.88 · 2022-11-12 13:50:52

There aren't USDC backing the DAI for any given DAI. If I have 5 DAI, you can't point to 3-4 USDC backing it (I think ETH backs it too).

Even if Circle did freeze some of DAI's USDC, the Dai contract does not contain the ability to freeze user funds, and I believe is also not upgradeable

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