What is the difference there vs earn?
What are the risks involved? If there is ever a possibility of a bank-run or hack?
What are the risks of keeping bitcoin in provide?
Earn is on chain, Provide is off chain.
I believe there are risks involved with any chain, project, etc. I personally use both Earn and Provide.
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Thanks, what are some risks of both? Like examples? I’m assuming what I said about a bank run or hack could be possible, anything else?
Between on chain and off chain which is safer vs more risky?
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Provide is centralized which is managed by some members of the team. Earn is more decentralized because it’s on the blockchain.
Bank-run could happen with Provide because it is centralized, just like what happened with FTX or Incognito’s sister company MyConstant. Earn is on-chain and is subject to impermanent loss just like other DEXes. Provide doesn’t have such loss.
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Mutlisig is used to prevent this from happening.
Myconstant is not Incognito’s sister company. We did a social media cross promotion with them in the past. I believe they used to run Incognito nodes many years ago and allow their users to invest in PRV.
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Thanks for the clarification on the differences!
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Maybe I misunderstood.
No, multisig cannot prevent this from happening.
I misunderstood your attack vector that you were mentioning.