Sid Ramesh

@checkmate

28 Following

140 Followers

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Looking closely at a lot of protocols

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In short, the 4 main layers of risks to the user are: 1. Morpho - smart contract hacks, economic failure during black swan events and lack of liquidity to scale. 2. cbBTC - depegs, SC vulnerability, etc 3. Smart Contrat Wallet issues 4. Coinbase itself - potential reg issues, app downtime, and any account restrictions due to compliance or security policies preventing you access from your loan or embedded wallet temporarily. A number of these issues are mitigated to the best effort using our threat models and stop gaps to ensure quick responses in situations of hacks especially. That said, onchain financial services do come at a cost to the user and such losses will not be covered by Coinbase as we are operating a front-end technology solution to DeFi. There might be unique situations where losses could apply on behalf of Coinbase to the customer and more details can be found in our ToS.

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Already live —feel free to DM

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Hacks are unique and there is no coverage for this scenario. User holds the liability as they are using Morpho directly and we are just a technology provider. Given that Coinbase operates cbBTC as well, we have the ability to react real time on hacks to pause redemptions, transfers or blocklist the hacker to prevent any damages. Morpho has gone through 27 audits across 12 different firms so our analysis gives confidence in a low hack probability. Risk still exists nonetheless. More information is disclosed in our ToS.

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Yeah pretty much. Wrapping BTC and locking it in Morpho, all controlled by the users wallet.

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Based on current guidance, Coinbase will not be reporting the wrapping of BTC to cbBTC as a taxable event to the IRS. Please consult a tax professional for personalized tax advice tho.

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We plan to roll out more collateral assets like ETH this year.

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Working to make this the best on-ramp to DeFi. We will take this seriously when building more features and user educational materials. Valid point!

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Let’s definitely DM to chat. Love to hear your takes!

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We take careful considerations of the legal statute and ensure rigorous procedures are followed while working with regulators. Can’t comment on any specifics as to NY, but we hope to expand soon and work on the right direction while following best practices. Hope to get there at some point.

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No minimums. We just provide whatever is doable on DeFi via Morpho. Requirement today is that you need to be a Coinbase verified user in the US (excl. NY). The loan limits are currently capped to ~$100k to ensure product quality but will be raised soon.

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Good question. We are aware of the liquidity constraints of DeFi. Hence why we’re also open to integrating a multitude of protocols depending on the needs of our users. We currently don’t plan to use our balance sheet to finance any of the credit. Liquidity begets liquidity though and Morpho can scale as is.

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1. Simply put — UX and user safety come first followed by the technology itself. Prioritize based on the merits of the protocol traction, usability and the team itself. 2. Depending on the layer in the product, we do add security controls and mitigations to safeguard users. We take audits and engineering practices seriously and it’s #1 requirement from our side. 3. Notifications for now but self repay / defi saver feature can come later. What do you think the experience should look like for that?

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All onchain financial services out there, both in DeFi and otherwise. Think Lend, Trading, NFTs, Prediction Markets, etc. Can’t comment on what’s next but you can imagine whatever useful and exciting innovation is happening, we are closely looking.

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Hi folks — we built a new product at @coinbase that lets you borrow USDC against Bitcoin, fully onchain and dead simple to use. We call this the DeFi mullet. CeFi in the front and DeFi in the back. This was a year long project with first principles thinking. ➡️ Doing an AMA through the weekend. Fire away questions or thoughts.

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Drop the “cast”. Just Warp. It’s cleaner

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Who wants to hack on a bot that lets you send USDC via Base to any farcaster user using Linkdrop? Or build a bot that lets you buy USDC p2p from any FC user? /farcon /los-angeles

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my current "web2" social pages: linkedin: https://www.linkedin.com/in/sidrmsh/ twitter: https://twitter.com/sidrmsh

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