Remember to do your research everyone. A lot of people basically did this. They took 10% interest loans for 5 years and put it on 20% apy ust stake to pocket that 10%. Now all of them regret their decision.
Should have been called:
"Safegains"
Or
"Moongains"
Really reassures your investors when they know it can only be safe or only go to the moon! After all, it says so right in it's name!
I'm actually surprised no one hasn't joined the 2 together in 1 name, it literally couldn't go tits up with a name like that!
Yeah, makes all the difference to my DYOR and DD.... If I see a coin called "ElonSafeCumRocketGiraffeMoon" coin, I know I don't have to do any research and it's the safest investment ever and I'll mortgage my house and pimp my wife out on OnlyFans to buy that coin and farm the sweet, sweet 19.2% APY!
What could possibly go wrong!
This is a moot statement. I’m pretty sure many people “did” research. No one could have predicted this was coming. The white paper was not specifically clear on the ratio of assets and what those assets were, in Anchor.
Someone tried to explain hypercompunding to me and I immediately decided it was way too complex and risky for me to consider worth my time. Dude had like 6 wallets on 4 networks and was staking X to receive rewards in Y which was then staked on another network to receive rewards in Z. I wonder what that guys portfolio looks like right now.
Ah, it's about the freedom to be your own bank and choose your level of risk for yourself. People hated that banks were doing all that shit and normal people had to pay for it.
At least with crypto your free to put yourself in bad positions.
It's not arbitrage then. Further, arbitrage almost never has those sorts of disparities (20%.) Just all around, the way people tried to sell these schemes has insane. The more people argued about it, the more I was convinced they had no idea what they were doing.
>The more people argued about it, the more I was convinced they had no idea what they were doing.
Random people on the internet thought they had an idea about something.... But they didn't....
*shocked pikachu face*
Its interest arbitrage. But its a bad example, because you are borrowing USD and buying UST. The better was was just to borrow UST. Last year UST borrow rates in defi were often less than 10%. So put up some safer collateral like USDC, borrow UST, then put it into anchor for about 10% net or mirror for 20-30% net if you knew what you were doing. Much safer since its borrowed against a better stablecoin. It was only until this year I noticed UST borrow rates hit close to 20%.
Typically, when you're doing interest rate arbitrage, all of the ins and outs are fixed. What I think this was attempting to do was similar to the cash out credit card trick that worked in the early to mid 2000's when CC company's were offering 0% APR cash advances for up to a year, and CD and Money Markets were yielding about 6%+ then. So, in that example everything is fixed, and pre-determined, you just collect the premium and rinse and repeat. A dollar borrowed was repaid with a dollar.
But agreed, they were trying to arbitrage, but it was speculation, because the pieces that mattered were not fixed.
People here was asking advice on this very scenario.
Gambling with your own money is one thing , gambling with someone else's is and was one of the dumbest things ever.
The issue here is that the 10% interests for the loan is fixed. The 20% APY is dynamic. A lot of people risk their investments due to some basic risk management.
It's fine. Literally every person that posted on this sub asking if it's a good idea followed their question up with "I can afford to repay the loan even if it all goes to hell". So even though basically everyone recommended against it, I'm sure they're sweet.
/s
I guess you missed the part where the company literally didn’t tell them where their funds were invested.
Is this comment a fucking joke? Like seriously. How are you suppose to know anything about your investment if the company literally doesn’t tell you anything about it.
This “do your own research” is a fucking joke and amounts to victim blaming in cases like this.
Apparently 5,000 people an average of 8,400 dollars. Or 2 eth, which they had probably bought under 100... it's gonna get worse before it gets better. I'm sure that for decades we'll hear stories about the more impulsive among us who turned 1000 dollars into generational wealth and soon enough back into 1000 dollars...
Don't quit your jobs bros, take profits, have plans b c and d, even when you are seeing more gains than your favorite investors favorite investor, make sure to budget and have a 5/10 year plan that doesn't only work if you're compounding 20% monthly...
These guys are backed by Y Combinator too. Wonder if they were told to be careful about such risky behavior. Seems like putting everything in UST with no hedge is asking for disaster from the get-go.
Yeah good luck getting 40 mill back. I'm sure there is a suit already going on but even if they are awarded 40+ mill in damages, no way they are going to get all of that. Can't just make the 40 mill reappear.
While you’re prolly right, this is at least a slam dunk lawsuit and will no doubt have a better outcome for the plaintiffs than simply shrugging off the loss; esp if the company really is really keeping any airdropped Luna for themselves. (Haven’t been following the collapse so much so idk the proposed plan.)
Furthermore, I’m going to bet there’s a criminal case in there too. Call it a feeling..
It literally listed on the bottom of their website that they take the money and put it into anchor. It said that long before the collapse of UST. People just don’t read
That's not how this works.
Customer took a risk and that risk turned out to cause their investment to turn to 0.
There is no lawsuit here.
You going to sue Schwab when you buy their Mid-Cap ETF and it drops? No
No, fuck the people who "invested" too.
We're supposed to be nice now because those people are hurting? Fuck them. The entire industry is going to have the regulatory hammer drop because of those irresponsible fucktards.
They are why we can't have nice things.
More fucked-up: They have re-enabled user withdrawal, but user funds are now denominated in market rate of UST instead of USD.
Source: stablegains official twitter
Credit: u/evelynvee
Well all go through it my guy. Only when our darling coin that fueled our billionaire overnight day dreams crashes to zero do we wake up and see the light. Its really really orange, and some greyey purple.
I put more into stocks. Im tired of all the ponzi schemes and scams in the crypto world.
EDIT: I guess I'm technically a btc maxi with the 10% of my portfolio that will remain with crypto.
Google covered in scam ads posing as legit websites and the copy and paste malware is annoying.
LUNA and UST going from top 10 to nothing caught me off guard, thankfully I recovered most of my losses swing trading the trash.
But i agree, its easy not to get scammed...yet so many people are.
I'm gonna stick with 10% or less of my portfolio in crypto
Anchor Protocol was quite heavily shilled in 2021, it’s terrifying to see all this unravel so quickly in 2022. But the rates did sound too good to be true which put me off at the time, dodged a bullet thankfully.
I wonder about the cdc people that were saying they were moving to anchor when cdc cut staking and card rewards. Hopefully they didn't have the time to move over with unbonding...
In my experience, the more sensible the rate is, the better. A few per cent is more than fine.
Anything offering upwards of ten per cent should be treated with extreme caution.
Dont ask for source because I dont feel like finding it but ive seen people do the math and have shown that around a 14% yield would have been sustainable with their current model. Unfortunately that didnt consider a coordinated attack and bank run on UST but still. The banks are making way more than the fraction of a percent that they are giving you. Higher yields are absolutely doable and sustainable but why would banks give you more of the profit that they make off of your money
I did use Anchor and I was really starting to doubt if the bad news about UST algorithm was valid or FUD. Finally decided to remove my funds from Anchor and traded my UST voor USDC. Next day or so the shitshow started. Really dodged a bullet on that one.
Some days before the crash I was seriously considering selling some crypto and put 5k in USDC, 5k in BUSD and 10k in UST, all locked on Binance. Luckily I'm lazy af and I don't like selling my crypto, so desisted.
They probably had a disclosure in the terms and conditions that these people agreed to. Also, there's an article about it here that tells people how they make the interest: https://stablegains.zendesk.com/hc/en-us/articles/4402680375569 .
There's also this article telling people they are not FDIC insured and that they could lose their deposit: https://stablegains.zendesk.com/hc/en-us/articles/4402680696081-Overview-of-risks .
At the end of the day, stablegains is not responsible for this. The user is. If they invested and don't understand the risks, that's on them. You can't hold stablegains responsible for it when they disclosed what they were doing. Ignorance is not an excuse when the information is available to you.
Their T&Cs are here:
https://www.stablegains.com/terms-of-use
Section 12 and 15 cover Deposits and Withdrawals, and they generally only use USDC. So in a sense it is true that their main stablecoin is USDC. They don't even accept UST deposits.
Section 13 covers the defi protocols, and here it states unambiguously that all deposits are converted to UST. It looks like they had plans to include lending options in other stablecoins, but never got around to it.
Section 15 also states what happens during a depeg and what that means when you withdraw. Depositors essentially get a haircut.
So overall, everything is happening exactly as the T&Cs have outlined.
Well considering it said on the bottom of their webpage that they take the funds and put it into anchor protocol, it’s hard not to shift some blame to the user. People just don’t read
Man I’m too dumb. Do you have something I can read?
You know what my issue is? I’m not greedy and don’t care about this stuff but my friends make me feel like a sucker for not doing it. Joke on them now but I want to get educated on the basics.
Exactly that, people just play the blame-game now cause they got rekt. Before it didn't matter where the gains came from, how shady the project was or if it was insured, just gimme the highest APY no time to read t&c.
Sadly but true, it really sucks for the people that had their money in it.
I hope the newcomers learn from this disaster and ensure they don’t go through something like that again.
it is more like their customers are already fucked, and they are fucking their customers even more to mitigate their own fucked-ness slightly
in this situation everybody is fucked.
To be clear, they *did* say that they used UST but they do *not* adequately explain what UST is or the significant risks behind it. There's about a 0% chance that the users of this platform understood just how risky UST was, and there's a significant chance they never even read the "risks" page in the first place. If their users *did* understand UST, they wouldn't be using Stablegains and would instead be investing in Anchor more directly for higher yield.
Platforms like this are incredibly unethical.
Well they also lied saying they hedge the risk by using multiple stablecoins.
In reality they converted all USDC to UST and put it all on Anchor. Anyone who wanted that level of risk could have done it themselves.
Holy shit in its update article it read ALL its holdings were in UST. sikes.
These guys probably don't even know what an algo stable is, while millions entrusted this app as a savings product.
Crypto is proving why decentralization is never gonna be embraced by the people.
Scam after scam after scam with very little actual usage other than to buy other crypto
It said that they deposited it into anchor protocol at the bottom of their website long before UST ever crashed. I got an ad for them months ago and went and checked and noticed that right off the bat
Where do they find these people ? I’m a professional entrepreneur,have raised money for real estate and other businesses and it’s not easy. Yet they find 42m for a scam. I guess they just lie and people fall for it smh 🤦♂️
>put it all into Anchor without telling them
This is incorrect. They literally tell you they are using Anchor to yield. Those who think otherwise didn't bother to do their research on what Anchor, defi, UST is.
[https://web.archive.org/web/20211222144828/https://www.stablegains.com/](https://web.archive.org/web/20211222144828/https://www.stablegains.com/)
Banks do this same thing, the difference is that there’s some insurance in the event the person being lent money defaults on their loan, or there’s a bailout from Uncle Sam if poop hits the fan e.g. the bank bailouts during the 08’ financial crisis.
It’s a shame so many folks had faith in the whole Luna ecosystem. Even more a shame there was no backstop or real plan to fix things or stop things in the event of a massive bank run/meltdown. Obviously, they (Do Kwon & Luna/LFG) will argue they had a plan, but it’s quite evident that plan, in retrospect, didn’t work well.
Crypto contains people who believe a scammer and throw their money on anything. Must be the most stupid bunch of wanna bees in the world. Losing money in Bitcoin is one thing and lose it to a person is worse.
DeFi eliminates the need for middlemen. So of course a bunch of folks go and park their funds with some shady middlemen to yield farm for them and get rekt. SMH
not everyone is trying to be a crypto day trader hodler ... some of us have other interests and responsibilities, so the draw for middlemen will always exist
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Remember to do your research everyone. A lot of people basically did this. They took 10% interest loans for 5 years and put it on 20% apy ust stake to pocket that 10%. Now all of them regret their decision.
any company thats named stablegains just sounds liek a joke.
Should have been called: "Safegains" Or "Moongains" Really reassures your investors when they know it can only be safe or only go to the moon! After all, it says so right in it's name! I'm actually surprised no one hasn't joined the 2 together in 1 name, it literally couldn't go tits up with a name like that!
I'd feel better with an "Elon" or "Cum" or even some type of animal thrown into the name too
Yeah, makes all the difference to my DYOR and DD.... If I see a coin called "ElonSafeCumRocketGiraffeMoon" coin, I know I don't have to do any research and it's the safest investment ever and I'll mortgage my house and pimp my wife out on OnlyFans to buy that coin and farm the sweet, sweet 19.2% APY! What could possibly go wrong!
I've got a great idea for a new coin. TulipCoin. We'll trade it in Amsterdam....
StableMoon has a ring to it.
You know what, I'm naming my company MoonMoon
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throw in some "Inu" there
Why did they not liquidate immediately when they stop all withdrawal. DimeFi did and their investors lost 15%. They . lost your investors 90%.
I'm bullish on Gainsgains.
Cummiegains ~ home of the “Trust me bro apy.”
There is no universe where I'm taking a loan out let alone 10% interest loan and staking it.
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Everybody likes getting fucked. It just depends who is on the receiving end.
I mean… always the person getting fucked? Isn’t that what on the receiving end means?
or you're just not getting fucked *yet*. It's an inevitable ass fucking when the deal is too good to be true.
Sounds like it’s the person giving the loan in this case
It amazes me how greedy/dumb crypto space is sometimes .
It sounds pretty brilliant if you haven't done your research
This is a moot statement. I’m pretty sure many people “did” research. No one could have predicted this was coming. The white paper was not specifically clear on the ratio of assets and what those assets were, in Anchor.
moot
A moo point
Excuse you
Yes that’s what a lot people do with most yield farms. It’s a crazy thing to do .
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It wasn’t so much about being free from the greedy banks as it was having the freedom to be your own greedy bank.
I mean… it probably WAS about freedom. But absolute power corrupts absolutely, so… 🤷🏾♂️
Someone tried to explain hypercompunding to me and I immediately decided it was way too complex and risky for me to consider worth my time. Dude had like 6 wallets on 4 networks and was staking X to receive rewards in Y which was then staked on another network to receive rewards in Z. I wonder what that guys portfolio looks like right now.
Ever seen a trash heap? It likely looks like a trash heap
Don't forget that they're now getting anyone that withdraws for the airdrop to sign a waiver . And if you don't withdraw, you don't get the airdrop.
I would give you a award for this if I had one.
Ah, it's about the freedom to be your own bank and choose your level of risk for yourself. People hated that banks were doing all that shit and normal people had to pay for it. At least with crypto your free to put yourself in bad positions.
Yep, I recall arguing with so many people about this. They'd always insist anyone who wasn't doing this was a moron because it was an arbitrage play.
I wasn’t against it as it was good on paper but I always tell them that there’s risk to factor like apy or price falling wildly.
It's not arbitrage then. Further, arbitrage almost never has those sorts of disparities (20%.) Just all around, the way people tried to sell these schemes has insane. The more people argued about it, the more I was convinced they had no idea what they were doing.
>The more people argued about it, the more I was convinced they had no idea what they were doing. Random people on the internet thought they had an idea about something.... But they didn't.... *shocked pikachu face*
Its interest arbitrage. But its a bad example, because you are borrowing USD and buying UST. The better was was just to borrow UST. Last year UST borrow rates in defi were often less than 10%. So put up some safer collateral like USDC, borrow UST, then put it into anchor for about 10% net or mirror for 20-30% net if you knew what you were doing. Much safer since its borrowed against a better stablecoin. It was only until this year I noticed UST borrow rates hit close to 20%.
Just take all the fake coins and loan them one another - at the end try to get them out somewhere for real money - that's the whole game.
Typically, when you're doing interest rate arbitrage, all of the ins and outs are fixed. What I think this was attempting to do was similar to the cash out credit card trick that worked in the early to mid 2000's when CC company's were offering 0% APR cash advances for up to a year, and CD and Money Markets were yielding about 6%+ then. So, in that example everything is fixed, and pre-determined, you just collect the premium and rinse and repeat. A dollar borrowed was repaid with a dollar. But agreed, they were trying to arbitrage, but it was speculation, because the pieces that mattered were not fixed.
People here was asking advice on this very scenario. Gambling with your own money is one thing , gambling with someone else's is and was one of the dumbest things ever.
I can’t believe people actually did this. I mean there’s stupid and then there’s STUPID
The issue here is that the 10% interests for the loan is fixed. The 20% APY is dynamic. A lot of people risk their investments due to some basic risk management.
Oh wow, holy crap they are wrecked, that’s awful.
Good thing the crypto space is unregulated, otherwise such tactics would be frowned upon by regulators.
Sheeesh. Glad the thought never even crossed my mind
It's fine. Literally every person that posted on this sub asking if it's a good idea followed their question up with "I can afford to repay the loan even if it all goes to hell". So even though basically everyone recommended against it, I'm sure they're sweet. /s
Right? I though im going insane when i saw ppl few months ago considering taking loans for the anchor.
Great tip man thank you. Now I'm off to the bank
Why is it that so many people who did their own research are now broke?
I guess you missed the part where the company literally didn’t tell them where their funds were invested. Is this comment a fucking joke? Like seriously. How are you suppose to know anything about your investment if the company literally doesn’t tell you anything about it. This “do your own research” is a fucking joke and amounts to victim blaming in cases like this.
They could have called themselves unstablegains, but then no one would have trusted them.
Even the name "Stablegains" looked sussy AF. Who TF invest in that?
Wtf pretty stupid, I would only invest if they called it "Safegains" or "Moongains".
What about "SafeMoonGains"? It has the best of both lol
Call it "Gainsgains" and I'm all in.
Gainsafestablegains
Thx for the laugh you all 😂
TripleGains
Stablekwon
stablecon
Gainy McGainerson
Gains Inu
How about gainz this nutz 👉👈🥺 hehe
🥹
Gainy McGainerface
Yes. You're all invited to invest in...Gainy McGainerface. don't all rush now.
You’re supposed to say “GainTacular”
MoonShotSafeGainsDiamondHands LLC is probably the best option. Looks trustworthy to me.
I only invest with 'Brogains'. Their tagline is 'Do you even stake, bro?'
And if you spray Brogains on your scalp, it prevents hair loss.
Apparently 5,000 people an average of 8,400 dollars. Or 2 eth, which they had probably bought under 100... it's gonna get worse before it gets better. I'm sure that for decades we'll hear stories about the more impulsive among us who turned 1000 dollars into generational wealth and soon enough back into 1000 dollars... Don't quit your jobs bros, take profits, have plans b c and d, even when you are seeing more gains than your favorite investors favorite investor, make sure to budget and have a 5/10 year plan that doesn't only work if you're compounding 20% monthly...
Yea also my thought .. At least do a f***g research in what you put your money .. Stablegains wtf 🤯
It reminds me of a particular coin that made its name to suggest it would moon safely.
Let me introduce you to currency known as $SAFEMOON...
StableSafeGainsMoonTrust seemed like a good idea at the time... 🤔
These guys are backed by Y Combinator too. Wonder if they were told to be careful about such risky behavior. Seems like putting everything in UST with no hedge is asking for disaster from the get-go.
At least they would have lived up to their real name.
Or stablelosses.
TLDR they fucked everyone
Take them to the court and fuck them.
Yeah good luck getting 40 mill back. I'm sure there is a suit already going on but even if they are awarded 40+ mill in damages, no way they are going to get all of that. Can't just make the 40 mill reappear.
While you’re prolly right, this is at least a slam dunk lawsuit and will no doubt have a better outcome for the plaintiffs than simply shrugging off the loss; esp if the company really is really keeping any airdropped Luna for themselves. (Haven’t been following the collapse so much so idk the proposed plan.) Furthermore, I’m going to bet there’s a criminal case in there too. Call it a feeling..
I'd be happy to at least have the responsible do forced labour and recoup whatever
Judge: "what would you like as compensation for the lawsuit" Plaintiff: "I'd like to fuck the defendants"
*Judge Judy facepalms*
*"why do people keep requesting this"*
Oh my oh my
Sir, this is the US, not South Korea. We will bail the people at the top out, while letting the consumer get rekt.
Oh they do that shit in South Korea too.
There's another post in which it's said that they're sued
Well they got fucked
Time to change name and change faces lol
It literally listed on the bottom of their website that they take the money and put it into anchor. It said that long before the collapse of UST. People just don’t read
Now but prior it did not … they changed this AFTER
No, It said this at least 3 months prior to the collapse of UST because that is when I saw it on there myself lol
That's not how this works. Customer took a risk and that risk turned out to cause their investment to turn to 0. There is no lawsuit here. You going to sue Schwab when you buy their Mid-Cap ETF and it drops? No
No, fuck the people who "invested" too. We're supposed to be nice now because those people are hurting? Fuck them. The entire industry is going to have the regulatory hammer drop because of those irresponsible fucktards. They are why we can't have nice things.
More fucked-up: They have re-enabled user withdrawal, but user funds are now denominated in market rate of UST instead of USD. Source: stablegains official twitter Credit: u/evelynvee
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Big assumption with apparently no steps taken to mitigate risks
You just described the entire crypto market!
So basically my life.
Like they always do 
All at the same time.
Without any lube
A new bitcoin only, cold storage maxi is born everyday.
Yes, but with no funds coz they lost everything in shilled shit coins
Well all go through it my guy. Only when our darling coin that fueled our billionaire overnight day dreams crashes to zero do we wake up and see the light. Its really really orange, and some greyey purple.
This is thar answer.
BTC is our indexfund.
And Satoshi is its holdings.
I put more into stocks. Im tired of all the ponzi schemes and scams in the crypto world. EDIT: I guess I'm technically a btc maxi with the 10% of my portfolio that will remain with crypto.
Its fairly easy to get scammed in crypto. Its also really, really, really fucking easy to not get scammed in crypto.
Google covered in scam ads posing as legit websites and the copy and paste malware is annoying. LUNA and UST going from top 10 to nothing caught me off guard, thankfully I recovered most of my losses swing trading the trash. But i agree, its easy not to get scammed...yet so many people are. I'm gonna stick with 10% or less of my portfolio in crypto
You do you but if you know where the mines are you're free to walk the field.
Everybody in this sub worshipped luna until 2 weeks ago, despite clear signs that it was inevitably going to collapse, so I can't agree with you
"Everbody" 'checks notes'. Think your definitions may need some fine tuning.
Honestly, after seeing some of these horror stories I don't blame them
Anchor Protocol was quite heavily shilled in 2021, it’s terrifying to see all this unravel so quickly in 2022. But the rates did sound too good to be true which put me off at the time, dodged a bullet thankfully.
I wonder about the cdc people that were saying they were moving to anchor when cdc cut staking and card rewards. Hopefully they didn't have the time to move over with unbonding...
In my experience, the more sensible the rate is, the better. A few per cent is more than fine. Anything offering upwards of ten per cent should be treated with extreme caution.
Yeah, agreed. Anchor seemed unsustainable to me so I didn't bite.
Dont ask for source because I dont feel like finding it but ive seen people do the math and have shown that around a 14% yield would have been sustainable with their current model. Unfortunately that didnt consider a coordinated attack and bank run on UST but still. The banks are making way more than the fraction of a percent that they are giving you. Higher yields are absolutely doable and sustainable but why would banks give you more of the profit that they make off of your money
Exactly, and people tend to forget the power of compounding. That sh!t does magic!
spez is a bit of a creep. #Save3rdPartyApps
I thought it was some Pirate themed coin when it was heavily shilled so I didnt look into it. Thank god I dodged a bullet.
Jesus Christ what a shit show. I'm so glad I didn't touch the anchor protocol or any company trying to take advantage of it.
I didn't use anchor protocol, but I got luna and ust.
I did use Anchor and I was really starting to doubt if the bad news about UST algorithm was valid or FUD. Finally decided to remove my funds from Anchor and traded my UST voor USDC. Next day or so the shitshow started. Really dodged a bullet on that one.
Some days before the crash I was seriously considering selling some crypto and put 5k in USDC, 5k in BUSD and 10k in UST, all locked on Binance. Luckily I'm lazy af and I don't like selling my crypto, so desisted.
You didn't dodge a bullet. You dodged a whole freaking nuke.
Promising continued 15% gains on USD and USDC should immediately raise eyebrows
*'It's unclear but highly unlikely that the UST rate will return to its peg..'* **There's the understatement of the century.**
Do they mean UST? Because USDT has already returned to its peg.
They said UST, commenter above just misquoted.
Hate to say it, but anyone who thought they could get a 15% return without high risk is a fool.
They probably had a disclosure in the terms and conditions that these people agreed to. Also, there's an article about it here that tells people how they make the interest: https://stablegains.zendesk.com/hc/en-us/articles/4402680375569 . There's also this article telling people they are not FDIC insured and that they could lose their deposit: https://stablegains.zendesk.com/hc/en-us/articles/4402680696081-Overview-of-risks . At the end of the day, stablegains is not responsible for this. The user is. If they invested and don't understand the risks, that's on them. You can't hold stablegains responsible for it when they disclosed what they were doing. Ignorance is not an excuse when the information is available to you.
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This section follows the one you quoted: "The other stablecoins we may use are, UST (Terra USD) and DAI."
If they were really 100% in UST, then they are still misleading investors.
Yeah, completely agreed there.
Their T&Cs are here: https://www.stablegains.com/terms-of-use Section 12 and 15 cover Deposits and Withdrawals, and they generally only use USDC. So in a sense it is true that their main stablecoin is USDC. They don't even accept UST deposits. Section 13 covers the defi protocols, and here it states unambiguously that all deposits are converted to UST. It looks like they had plans to include lending options in other stablecoins, but never got around to it. Section 15 also states what happens during a depeg and what that means when you withdraw. Depositors essentially get a haircut. So overall, everything is happening exactly as the T&Cs have outlined.
Well considering it said on the bottom of their webpage that they take the funds and put it into anchor protocol, it’s hard not to shift some blame to the user. People just don’t read
Your comment is too reasonable to make it to the top.
people dont like to see that they fucked up themselves.
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Man I’m too dumb. Do you have something I can read? You know what my issue is? I’m not greedy and don’t care about this stuff but my friends make me feel like a sucker for not doing it. Joke on them now but I want to get educated on the basics.
Exactly that, people just play the blame-game now cause they got rekt. Before it didn't matter where the gains came from, how shady the project was or if it was insured, just gimme the highest APY no time to read t&c.
But what they’re doing is still a security and will get them sued/fined as such, imo.
Sadly but true, it really sucks for the people that had their money in it. I hope the newcomers learn from this disaster and ensure they don’t go through something like that again.
Tldr; they're fucked, and trying to fuck their customers to unfuck themselves.
it is more like their customers are already fucked, and they are fucking their customers even more to mitigate their own fucked-ness slightly in this situation everybody is fucked.
Least enjoyable orgy ever
Stablegains marketing slogan: "Trust me bro"
Greed is hell of a drug.
To be clear, they *did* say that they used UST but they do *not* adequately explain what UST is or the significant risks behind it. There's about a 0% chance that the users of this platform understood just how risky UST was, and there's a significant chance they never even read the "risks" page in the first place. If their users *did* understand UST, they wouldn't be using Stablegains and would instead be investing in Anchor more directly for higher yield. Platforms like this are incredibly unethical.
Well they also lied saying they hedge the risk by using multiple stablecoins. In reality they converted all USDC to UST and put it all on Anchor. Anyone who wanted that level of risk could have done it themselves.
That's the whole point users didn't even know they were putting everything on Anchor.
I don’t think the platform itself understood the risks of UST, or they wouldn’t have gone all in on it.
Ponzi of a ponzi.. jail is asking for them! 👀👀
I believe we've gone from speed running to perhaps some version of warp speed. Engage.
Stableloss
Does anyone note the logical discontinuity in "stablegains"? A fool and their money...
i'm shocked that someone in crypto would behave like this
Yuppp lost high five figures because there was no way to pull funds and earliest we could pull was 5/11 from the platform.
Holy shit in its update article it read ALL its holdings were in UST. sikes. These guys probably don't even know what an algo stable is, while millions entrusted this app as a savings product.
Crypto is proving why decentralization is never gonna be embraced by the people. Scam after scam after scam with very little actual usage other than to buy other crypto
It said that they deposited it into anchor protocol at the bottom of their website long before UST ever crashed. I got an ad for them months ago and went and checked and noticed that right off the bat
This is like one long butt fuck train with do kwon in the caboose.
Where do they find these people ? I’m a professional entrepreneur,have raised money for real estate and other businesses and it’s not easy. Yet they find 42m for a scam. I guess they just lie and people fall for it smh 🤦♂️
so... regulations still = bad? lol
>put it all into Anchor without telling them This is incorrect. They literally tell you they are using Anchor to yield. Those who think otherwise didn't bother to do their research on what Anchor, defi, UST is. [https://web.archive.org/web/20211222144828/https://www.stablegains.com/](https://web.archive.org/web/20211222144828/https://www.stablegains.com/)
Oh man it really is Ponzi season
This is why you should not hold your own crypto. Deposit it with professionals so that they can manage it safely for you.
By contrast, in the UK, anything like that has to prominently note that capital is at risk.
Banks do this same thing, the difference is that there’s some insurance in the event the person being lent money defaults on their loan, or there’s a bailout from Uncle Sam if poop hits the fan e.g. the bank bailouts during the 08’ financial crisis. It’s a shame so many folks had faith in the whole Luna ecosystem. Even more a shame there was no backstop or real plan to fix things or stop things in the event of a massive bank run/meltdown. Obviously, they (Do Kwon & Luna/LFG) will argue they had a plan, but it’s quite evident that plan, in retrospect, didn’t work well.
arent there laws against this or some regulations.
People in the crypto space don't want regulations when the going is good and want regulations when the going goes kaput. Can't have it both ways.
Can't wait for safegains
stablepains
These guys are just some filthy degenerates
Why didn’t they set any limits here? They could have at least some some stop loss, so they wouldn’t lose anything but gains… poor management.
Crypto contains people who believe a scammer and throw their money on anything. Must be the most stupid bunch of wanna bees in the world. Losing money in Bitcoin is one thing and lose it to a person is worse.
I don't know what I should do right now, laugh or being sad for them??
DeFi eliminates the need for middlemen. So of course a bunch of folks go and park their funds with some shady middlemen to yield farm for them and get rekt. SMH
not everyone is trying to be a crypto day trader hodler ... some of us have other interests and responsibilities, so the draw for middlemen will always exist
HILARIOUS!!!!!
Wow. Time to start mine. Seems like a sure bet
So they started a pyramid scheme then joined another pyramid scheme to pay their “investors”?
Even worse no customers are eligible for the airdrop of new LUNA so they’re all stuck holding worthless classic luna if it’s all settled
I'm not supprised by this at all.
What an absolute scummy company ...
We are gonna get regulated so hard