THORChain Spaces #56

Recorded: March 17, 2023 Duration: 1:20:36

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What's up, what's up guys? Chad or Donuts? What's up?
Good morning. GMGN.
How are things going? Are you guys pumped up?
I feel like it's just been kind of a crazy week with everything going on. It was just on Monday that we had that discord space with the polygon people. And that was really cool. It feels like it was like three weeks ago already at this point, but it was just the other day.
Yeah, it's been a big week. A lot of exciting things happening right now.
Yeah, same lots going on. Markets so crazy too. Definitely a, definitely a pretty exciting time. Just with everything going on beyond the orchains specifically even.
- Yeah Chad, what's going on there?
Wait, I missed something. What's up? What's happening to the best? I don't care which shed. What's happening? It was just chat in general. I wasn't sure which shed you were referring to.
Sometimes it's like, it seems like what's going on. Exactly. Seems like what's going on is exactly, you know, what Bitcoin, what's the touch you was thinking about in 2008? Yeah, I mean, you have really,
have a system that's like you have a financial asset, which is USD in this case, where a government creates it, mint it, gives out to people, goes to the whole process, and then you have individuals who decide to run systems on top of that, that you are kind of
of like in some level you as the government you kind of like obligated to some degree as opposed I hope you would argue against that and they'd probably be correct but they're like make sure that they don't have they all fail right so particularly in SDB's case like there was a cascading effect that was worried about effectively destroying
Many of the community banks are not the big giant banks because I think I'm not mistaken the government does FDIC ensure all the money for big banks but only some money for the smaller community banks. I think that's the part of the issue.
Yeah, I've seen people talking about that especially like you know if a small bank collapse in the state. Yeah, you know, probably no one's really gonna care like regular regulators or FDIC. They're not gonna be like oh yeah, we're gonna come in and and
give you guys full coverage or anything like that. It's going to be people with big losses and then all right you got to move to preferred bank, you got to move to the big bank in order to get out of this sticky situation you're in.
Yeah, but in particular this situation is like because of SVB which is I think they hold like maybe half of startups money VCs and companies It would be like if they did collapse like it would be such a hit to just like
entrepreneurship and innovation in the country, which would just like none. That would not be a good thing for the country as a whole. So I guess they're stepping in and paying deposits and all that kind of stuff.
Yeah, they're just updating some numbers on a spreadsheet and everything's completely fine. So we saw there was a pretty problem. So we added a couple more zeros at the end of the spreadsheet. That sounds it. One way of going at it.
Well, thank you. We're trying to build this like this is one of the fascinating things about like D5 versus Treadfy is that like Treadfy is not doesn't use Darwinistic measures to determine which systems are good and bad right doesn't matter if you design a bad
bank, the bad bank will continue to function within some reason that the government determines to pick who the winners and losers are within that context. But in defy there's no government to pick, you know, what is the winner, what is not the winner. And in the end, it was really just like a Darwinistic system that just picks this
strong survive in the week do not. And so things that float to the top are going to be extremely valuable, very resilient in one lasting financial instruments. Things that don't float and sink to the bottom are just going to go away with just like most of life has gone away through the Darwinistic process.

FAQ on THORChain Spaces #56 | Twitter Space Recording

What did the speakers discuss in the podcast?
The speakers discussed various topics including the market, recent events, and the impact of the collapse of SVB.
Who did the speakers have a discord space session with?
The speakers had a discord space session with the Polygon people.
How does DeFi differ from traditional banking systems?
DeFi does not use deterministic measures to determine which systems are good and bad and it is a darwinistic system that picks the strong survive and the weak do not.
Why would the collapse of SVB be a bad thing?
The collapse of SVB would be a bad thing because they hold a lot of startups' money, and it would be a significant blow to entrepreneurship and innovation in the country.
What is the FDIC's role in protecting banks?
The FDIC ensures all of the money for big banks and only some of the money for smaller community banks.
How does the government support the banking system?
The government creates, mints, and gives out USD, and individuals run systems on top of that. The government is obligated to ensure that these systems do not fail.
What is DeFi?
DeFi is short for decentralized finance. It is a financial system that operates on a blockchain and does not rely on centralized intermediaries.
What does it mean for a system to be darwinistic in DeFi?
In DeFi, a darwinistic system means that the strong survive and the weak do not based on the principles of natural selection.
What did the speakers say about the current market?
The speakers said that the market is crazy and very exciting right now.
What is the government's role in DeFi?
There is no government involvement in DeFi as it is a decentralized financial system.