balajis pfp
balajis
@balajis.eth
Something I’ve been thinking about is using onchain reputation to regulate decentralized exchanges. For example, you only allow a wallet to even *place* a limit order if they link a yourname.eth with enough reputation. Trade with Farcaster/Interface users only?
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balajis pfp
balajis
@balajis.eth
Yes, using reputation in this way as a gate would reduce liquidity. But you give up some short-term money (less liquidity) in order to protect users and make more long-term money for all (less fraud). And you can decide how stringent you’re going to be. Maybe just a registered ENS name, maybe much more.
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Rob Sanchez pfp
Rob Sanchez
@robrecht.eth
seems like you could create a liquidity pool limited to e.g. farcaster users on top of uniswap v4 w/ hooks wouldn’t prevent users from going to other pools but could split up liquidity between ‘pools with reputable users’ and ‘pools with potentially fraudulent users’
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Jordan Messina pfp
Jordan Messina
@jomessin
I think a single classifier turns into a game of cat and mouse, and it's hard to create a one size fits all model for protocols. Small composable classifiers are the way to go imo. As a dev, I can choose the onchain criteria for actors, e.g., deposited to Coinbase, has a Farcaster account, and claimed the ENS airdrop.
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offline pfp
offline
@shoni.eth
I am working on address to address reputation as well as aggregating across multiple self-owned addresses https://warpcast.com/shoni.eth/0xe6a1e9 Never thought of using it for regulatory though
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Binji 🔴 pfp
Binji 🔴
@binji
There’s multiple methods like this ongoing within Optimism. A multitude of attestation methods building atop the open source attestation station web. Would be keen to chat and pick your brain. I know all teams would love to hear from you, and we can do a focus group.
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avichalp pfp
avichalp
@avichalp
great idea. the “permissionless maxi” counterpoint would be that it opens up the room for governance attacks if regulations can be changed with proposals
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J. Valeska
@j-valeska
So, the user has to pay the ens name.. and get some reputation before use a Decentralized exchange, just like a Cex and adding complexity to the UX what about I am not guilty until you prove the opposite? I know that a web3 reputation system starting with positive balance is like have no reputation system at all...
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Aron pfp
Aron
@aron
Interesting. We’re trying to figure out a legit verification method as well for our decentralised App Store. Right now thinking an aggregation of different services to create a unified score.
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Bayram pfp
Bayram
@bayka.eth
Cool stuff. What do you think of a undercollateralized lending protocol leveraging onchain reputation? We’ve built this on ETHGlobal Lisbon: https://ethglobal.com/showcase/cryptobureau-u1389
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raz pfp
raz
@raz
Or even better: only wallets with a track record of providing liquidity to other similar protocols can participate in this new one. We've been experimenting with this for a while (ex.: you could only mint if you are eligible to xyz on guild.xyz)
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Ian L. pfp
Ian L.
@fyi
👀
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Eric Kuhn pfp
Eric Kuhn
@cypherpunk21.eth
It doesn’t have to only be onchain. Take a look at Centre’s Verite project that uses Verifiable Credentials validated by smart contracts for a permissioned dex as one example https://www.centre.io/verite
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ツ pfp
@nebula
Good thing @pentacle and frens are building up blossomland_.twitter for this kind of extra use cases
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Binji 🔴 pfp
Binji 🔴
@binji
you can also use optimistic oracles to ensure exchanges report fairly and users can challenge their numbers. Being built rn
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Humpty Calderon pfp
Humpty Calderon
@humpty
How do you imagine reputation being earned? Would it be single or multi source trust scoring? RE: NFTs signaling trusted account, I’ve found through my work at Orange Protocol last year that SBTs were a better approach as “reputation” then can’t be sold.
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Robin A. pfp
Robin A.
@degenroot.eth
Introduction accountability always comes with drawbacks, some of these drawbacks we would have to accept for broader adoption.
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cafejerk pfp
cafejerk
@cafejerk
I've been working on a DEX called Six Degrees of Balaji, which comprises six degrees of trading permissions and limits based on their proximity to you
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Jon Hargreaves pfp
Jon Hargreaves
@jonharges
I think this model could potentially utilise a credibility score tied to other behaviours such as sustainability credentials
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