u/explosiveplacard

I'm hoping Adam Back (the Epstein enjoyer) has to pay the bounty directly.

I can't believe a mod hasn't deleted this yet. If you want to do a deep dive on this, you'll need to hit Twitter. There is a lot of censorship here when it comes to this dicussion along wiith the people running Core.

Better yet, ask Claude for a summary and get caught up. Whatever you go with, just run a node and show support.

I did the same thing. I tested this out with a small amount through Coinbase and I also tested it directly with Morpho (which is who CB uses behind the scenes). I have since done some pretty big loans and here's what I learned:

• If you are a maxi, and you don't want to have to use a wallet like metamask and jump through all the hoops to wrap your own bitcoin, use Coinbase. The process can't be more simple.
• Coinbase charges a 1% origination fee which you don't have to pay if you go direct to morpho
• If you originate your loan with Coinbase, you can only service it through coinbase - going direct to morpho is not an option - if coinbase goes down or disappears, you are sol.
• Coinbase's alerts and dashboard make it easy to always know where you LTV is

One thing that is worth noting: After taking out my larger loan at 50% LTV, I decided I wanted to lower the LTV. You have two options. Add more collateral or pay down the loan with fiat. I decided to pay it down with fiat so I sent money from my bank via ACH. Because of the amount, Coinbase put a hold on the transfer for 5 full days! Had my LTV been in a bad spot, I may have gotten liquidated while waiting. The faster way to do this is to send a bank wire - the funds would have been available instantly.

It has become a shitcoin conference. Especially after today and what David Bailey was able to pull off with Nakamoto (NAKA).

https://x.com/1914ad/status/2023787088097812514?s=20

So the whole cheating thing is starting to make more sense now. It's not only because the cheater has a small dick, but he's also making money doing it. Wild.

I've done this a few times now with no issues. I have used Coinbase and I've gone to Morpho directly. Both were pretty easy. The only real downside with using Coinbase is that they control the wallet your cbBTC is controlled by. Basically if you originate a Morpho loan through coinbase, and they go bankrupt or just disappear, it will be impossible to service your loan or get your btc back.

I had no issues and will be doing this again soon.

I also took a Morpho loan for a home remodel. If/when I do this again, I'll go directly to Morpho and skip Coinbase next time. While Coinbase makes it very easy with just a couple of clicks, it does add a little more risk. Coinbase controls the address your wrapped bitcoin is sent to. It's the same address that you use when paying down/off your loan and receiving your collateral back. If Coinbase goes dark for some reason, you will not have access to the address needed to service the loan - and get your BTC back!

For comparison, I have also taken a loan directly with Morpho and bypassed Coinbase completely. It's more work because you have to setup a new wallet, wrap your bitcoin into cbBtc, send it to your non-custodial wallet, send it to Morpho to originate the loan, receive the stable coin back to your wallet, transfer the stable coin back to Coinbase so you can withdrawal to your bank. A few more steps, but you have more control since you control the address the smart contract is pointed to.

Just my 2 sats.

Even the majority of the core dev team is against this release. Go take a look at the repo release notes where only maintainers have access to the content. It's not even close, most members don't want this release coming out.

You have to wonder why such a small minority wants to push something out that the vast majority of the community never asked for and doesn't want.

This is reddit , so I expect some downvotes, but man-up and let us all know how blowing open the op_return limit is good for bitcoin.

So why remove the op_return limit? How does this help bitcoin?

Running Knots is a vote against what core is doing (so is not upgrading to core v30). They are blowing open the op_return limit for no reason at all. This all started because of a bug in the witness data that core refuses to fix. Even with op_return limit removed, spammers will still use witness data because of the discount allowing them to spread their spam 4x cheaper than op_return.

I'm running my own custom version of Knots since I also use it to mine. It won't prevent valid blocks containing spam from getting added to the chain, but it will prevent my node from holding and distributing spam to other nodes. It's all I can do for now.

Please provide the list of "dangerous things" Luke has done to bitcoin. Keep in mind that YOU, the node runner, are in control of what you run. If you don't like what Core or Knots is releasing, run something else or stay on an old version. But don't spread FUD with something it appears you know very little about.

Mods, please delete these bot posts. Us 10%'ers don't have time for this shit.

Morpho uses a "oracle" to watch the bitcoin price. This is nothing more than a smart contract that runs on some other chain. Its sole job is to report an "accurate" price so all the loans (smart contracts) know what to do and how to act. The real risk, in my opinion, is if one of these price oracles is either hacked or bugged and reports a bitcoin price much lower than the real price. This could liquidate a lot of loans.

Once you have one of these loans, you can pay down your LTV by adding more collateral, or by paying off a portion of the loan. I've taken out a couple of these loans in the past and have had no problems. In both cases, I took out a loan at 50% LTV and then added a little collateral to get closer to 40% for peace of mind.

I have tried it both ways - one through Coinbase and another through Morpho direct. I believe going direct is safer since you control the "loan address" instead of Coinbase.

Take a look at morpho dot org for more information. From there you can see all the lending pools, all the loans, all the people that will be liquidated with a X% move in bitcoin, etc. It's very interesting to see how it all works.

Do you think difi platforms like Morpho are the future or will they die a horrible death? Asking for a friend.

Specifically, looking to know your thoughts on security around wrapped bitcoin and smart contracts.

Basically Knots has been around for many years, but it's always been only 1-2% of software being run on nodes. It's currently 21% of the network and growing.

Why? The next version of Core is v30 and it has some changes that some people like and others don't. Here are just a few:

Bitcoin Core has increased the DataCarrierSize limit from 80 bytes to 100,000 bytes for non spendable data in OP_RETURN - some call this spam.

Bitcoin Core has made the new setting the default - telling people that if they don't like the new OP_RETURN size, they can just change it back to 80 (or whatever they want). However, the setting is marked as deprecated so this will be going away in a future release.

Once the datacarriersize is deprecated, there will be no limit at all, and a single transaction will be allowed to take up the entire block (4MB).

Knots fans say that illegal content can be added to each transaction such as images or short videos (same as BSV). They believe this could be an attack vector for bitcoin in the future.

One thing Adam Back said that struck me as odd was that he's for increasing the limit (and removing it completely) because Taproot introduced a bug when released that allows for massive inscriptions. Increasing the OP_RETURN size, he believes, will stop people from exploiting taproot and instead use OP_RETURN for non monetary data - even though it would cost the spammer 4X as much.

Knots allows a user to filter his mempool to reduce inbound spam and to prevent further relaying of spam to the rest of the network. Knots will not prevent new spam from entering the blockchain if a miner mines the block - spam or no spam.

In my opinion, Knots is working in the best interest of Bitcoin, but you don't have to run Knots to opt out of the new spam abilities. You can run any version of Core other than v30 and keep your node running like it is today.

I've used Morpho through Coinbase as well and I agree with you.. It's very easy and you get your money in just a few seconds - which is nice. However, since the address you send your cbBtc from is the same address you get paid back in, if Coinbase where to go out of business, it would be impossible to get your collateral back. I kept the loan for about 4 months, then paid it off and got my sweet corn back.

If I do this again, I'll probably use Morpho direct and bypass coinbase. I'll also check out Ledn and Strike, but there rates are 2x what morpho is - and I'm not sure I would feel twice as safe with either of them.

The best part is we will get more and more offerings like this over time.

You just killed a baby scav with a binky in his mouth.

I understand that Bitcoin already support Smart Contracts. That's how multi sig and time locks work. I also understand the Scrypt language was nerfed to prevent bloat and vulnerabilities from the very beginning. What I'm not understanding is how RGB works to create any type of smart contract without using a side chain.

Let's say I'm a maxi, and I want to put up bitcoin as collateral to receive a Tether loan. How can this be done in RGB/Bitcoin today without using something like Eth or Base to execute the contract?

I was looking at these over the weekend and here's what I ended up doing. First, I was a Bitmain S9 enjoyer for a long time. I took all my freshly minted bcash and bought a bunch of S9s and mined bitcoin for 3+ years. I loved it back then because one dude could mine a substantial(ish) amount of bitcoin. Those days are over.

This heater is a cool concept but it will probably never pay for itself. All I want to do now is contribute to the network as a solo miner. I decided to go with the Nano 3S instead. Yes, it's only 6TH, but I don't expect to get rich mining, I just want to provide hashed to the network. If I get the bug again, I'll probably go with something more substantial, but this ~$300 unit will scratch that itch for now.

Good luck.

I recently did this with Morpho. I used a *very* small percentage of my stack to get a fiat loan to do some home improvements. I could have just paid with cash, but I wanted to test this out and leave my dirty fiat working for me in my brokerage account.

I don't know how all of these work, but I do understand how Morpho works.

• Your initial LTV is 50%
• Your liquidation LTV is 86%
• You can lower your LTV at anytime
• You get your loan in either USDC or Tether
• Your bitcoin (in my case) is wrapped in Coinbase's cbbtc
• cbbtc is pegged 1-1 so your btc can't be rehypothecated
• You can pay down/off your loan at any time - or never
• The reason it is decentralized is because it uses smart contracts
• Currently Morpho has $8 Billion in loans averaging 5.65% interest
• There are many other bigger players to chose from, but this is the route I went

The risks:

• There is a chance a smart contract could be hacked
• Price is monitored by an oracle (another smart contract) - this could be hacked
• Today this is not a taxable event according to Coinbase and my CPA, but that could change in the future

I'm not advocating other people do this at all. We are still very early, but I do think this will be the future of lending.

The only thing that would make this better is if the smart contracts could be created on the bitcoin chain and not some other sidechain. Much of bitcoin's script language (multisig, time locks, etc.) have been nerfed to avoid exploits, so I don't see this happening anytime soon.

You need to dyor, but in a nutshell:

• You deposit bitcoin as collateral
• Your bitcoin gets wrapped in Coinbase Bitcoin (cbBTC)
• Your basically using a smart contract on the Base network :-(
• It's a one-for-one with no rehypothecation
• You can set any LTV you are comfortable with - the default is 50%
• You will get liquidated if your LTV increases to 86%
• You can pay down the loan or add collateral anytime after the loan is created
• No terms or minimum payments (including interest)
• No early payment fees or any fee at all for that matter
• You get your collateral back once the principal and interest are repaid
• Interest rate is variable. Since January 4th through today, my average APR has been 5.15%

Things to keep in mind:

• You don't need Coinbase for this. You can go direct
• You're relying on a smart contract so there are risks such as:
• It is possible that someone hacks the smart contracts (not likely, but a risk)
• They use another smart contract called a price oracle to keep track of BTC price - this could get compromised which would liquidate you and everyone else
• Interest percentage is adjusted constantly depending on how much of the pool is being used. If the pool goes over 90% utilization, the rate will tick up. If utilization drops below 90%, rates tick down. It's complicated so dyor for sure

Another potential issue: Coinbase makes this very easy with just a couple of button clicks, but it comes with a little bit more risk. Even though Morpho is its own entity, if you open your loan with Coinbase, you need to service and close it with Coinbase as well. This is due to the address that the smart contract assigns to you. If Coinbase goes bankrupt, or closes down for a long time, you may not be able to access your loan at all.

You can take out the same lone without Coinbase being involved at all which will give you a lot more flexibility on servicing your loan and repaying it.

I'm not a Morpho spokesperson or a fanboy. I'm just a normal guy trying something that, while a bit early, I believe will be the future way taking loans against Bitcoin.

Sorry to hear you are in a tough spot. Hoping you can find a way out other than leveraging/selling your corn.

This is an area I watch a bit since I think DeFi will be the future, but it's still early. That beings said, here are a few options that I am aware of:

Morpho.org - the only reason I listed this one first is because it's the one Coinbase is partnering with to offer Bitcoin backed loans. You basically lock up your bitcoin and borrow what you need. The rate is variable and there is no payback term. If your LTV gets to 86%, they will liquidate you. It's controlled by smart contracts.

Aave.com - Very similar to Morpho but the rate is a bit higher. They have been around a lot longer and have the largest TVL (Total Value Locked). These are all controlled by smart contract as well. Rates seem to be a bit higher than Morpho, but that changes all the time.

Unchained.com - These guys have been around for a long time. They are Bitcoin only and provide lending services for business using Bitcoin as collateral. You'd have to form an LLC or similar entity to use this service. Their rates are much higher and they use multi-sig to secure your collateral (no rehypothecation). The last time I checked, their rates are very high, but they have a good reputation.

Full disclosure: I have tested out Morpho on very small amounts just to see how the process works. I also asked AI to provide a list of 20 DeFi services and rate them based on several things such as Issues found, customer liquidation rates, hacks, smart contract vulnerabilities, etc. and Aave was listed as the best, but take that with a grain of salt.

Someday I expect to use a service like this for real, but it feels too early right now. If you are really in a pinch, it might be worth it rather than selling outright. You have to make that call.

Hope this helps...

I did some research on this last night. Coinbase is using Morpho (dot) org which has been doing these types of loans for a while. If you really wanted to borrow against your bitcoin, I don't see why you would use Coinbase when you could just use the same tool they are using with (probably?) less fees. It's too early for me to mess this this, but here's a few things I was able to find out:

• No rehypothecation - Your collateral is "wrapped" in either wbtc or cbbtc and can't move due to multi-sig addresses for all collateral - they can't use your bitcoin to short the market
• Rates on Tether are about 6.5% and 8.4% for USDC right now but it changes daily
• Interest rates are adjustable and calculated constantly. Each pool of lending capital strives to be at 90% utilization. If the pool is less than that, interest rates drop enticing people to borrow. If it's over that, interest rates climb to in promote loan payback/pay down.
• Liquidation happens at 85% LTV
• No defined term - these appear to be open ended with no end or maturity date.
• Paying off or paying down the loan can happen at any time.
• Interest accrued will be added to your balance - increasing your LTV
• If your LTV climbs above 86% (due to market adjustment, interest accruement, or both), you will be liquidated and charged a 4.6% "Liquidation fee". Anything left over gets unlocked and sent back to your address
• While Coinbase has minimum and maximum loan amounts, I did not see any of these on Morpho. I saw people taking loans out as high as $12M and as low as 10 cents.
• The documentation states that since you are borrowing, there is no capital gain, but I've also read elsewhere that "wrapping" is akin to selling, so borrower beware.

It's way too early for me to experiment with this right now, but the fact that we are even talking about it is positive in my opinion. I just wanted to pass on some of the info I found.

The way I understand it, Morpho requires cbBTC as collateral which is "wrapped bitcoin". From there you can borrow a stable coin. While I think this is a step in the right direction, converting Bitcoin to cbBTC shitcoin may be considered selling and thus subject to capital gains tax.

Nakita sitting in a dark room watching all these nade videos with his dick in his hand.