DeFi (Decentralized Finance) is often touted as a solution to the crypto industry collapses of 2021-2022, but this article offers a more critical assessment. While there are certain advantages to DeFi, they come with problems of their own. Leverage is opaque and can be risky, and DeFi is susceptible to arbitrary seigniorage and smart contract exploits. The lesson here is that when it comes to volatile assets, cautious over-collateralized lending should be the way forward. Read full article here
Societal Issues
To curb drug deaths, communities turn to Reddit, texts and wastewater
With drug overdose deaths on the rise, authorities are attempting to curb the epidemic by tracking and sharing information in real time. In one unique effort, a nonprofit in New York City is using drug-testing equipment and stamping or marking habits of dealers to identify drug batches that may endanger users. Other approaches are also being used, such as monitoring drug-related chatter on Reddit and analyzing local wastewater for opioid and other drug levels. With the combination of these efforts, researchers hope to put a dent in the opioid crisis and reduce overdose deaths. Read full article here
Merv
June 1, 2023
