My current understanding is that delegation rewards are based on a snapshot taken at the beginning of each epoch, every five days.
Given an ecosystem of DeFi like what is going on in Ethereum, what is stopping people from borrowing large amounts of ADA, delegating to a pool and then pulling it out right after the snapshot?
I imagine the price of borrowing would surge during this short period, or the price would fluctuate to balance this out. Nevertheless, it would introduce a lot of price-noise at the epoch boundaries?
Am i missing some information?
Should the rewards perhaps be based on a weighted average of the stake of the previous epoch?
~H
[GAINS]
1 Like
If you’re in the US, taxes will be enough of a deterrent. Any crypto-to-crypto or crypto-to-fiat, or vice versa, transaction is a taxable event.
I am not from the US 
Even so, I am guessing people will take advantage of this regardless of taxation laws, given that there is no way for the government to track such transactions…
In case you have not noticed, people are freakin’ animals 
~H
haha… true, people will take advantage when they can… with that said… these are easily tracked. You will eventually want to cash out via some fiat currency, USD in the case of the US and exchanges are cooperating with the IRS. It’s just a matter of linking addresses and transactions at that point and the IRS is employing firms to do just that. Pay your taxes people 
In any case, I definitely see your point. I am of the opinion if you want to do that, then perhaps Cardano needs to get a DeFi product out the door sooner rather than later. We do earn rewards on transactions as well so the more the merrier
1 Like