I definitely don't think it could wipe out the DAO. Let's say the DAO put out 5 pools with 50k of third party tokens and 50k of SPS, we'd be exposing 100k which while extremely unlikely, could be lost. Realistically we're probably looking at mild variance and impermanent loss, but there's always counterparty risk when dealing with other tokens. We already technically have some of that now. Could USDC become worthless tomorrow? It's possible, not likely, but anything can happen. My goal is just to make sure everyone understands there are no guarantees (in life or crypto).
What specifically? The risks at the highest level boil down to the DAO or the LPs could lose money.
How badly could it go wrong?
How much could we lose?
Could it wipe out the dao, for example?
I definitely don't think it could wipe out the DAO. Let's say the DAO put out 5 pools with 50k of third party tokens and 50k of SPS, we'd be exposing 100k which while extremely unlikely, could be lost. Realistically we're probably looking at mild variance and impermanent loss, but there's always counterparty risk when dealing with other tokens. We already technically have some of that now. Could USDC become worthless tomorrow? It's possible, not likely, but anything can happen. My goal is just to make sure everyone understands there are no guarantees (in life or crypto).
Seems like a risk worth taking then, thanks.