DeFi - decentralized finance | Bitcointalksearch.org

guydin

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Quote from: Hypnosis00 on December 31, 2019, 08:24:18 AM

Quote from: r32godzilla on December 31, 2019, 08:03:24 AM

I pray for the world where I don´t have to trust the other side with I do the business. Blockchain ans smart-contracts made a real revolution in it, but we are still far away from trust-less protocol, right?
And what about other blockchains, am I understand correctly that Cardano´s network will be more strong against hackers due to its unique coding?

Yes, we are too far from happening and quite to say that people are still confident for not using online loans, or whatever it is in terms of financial scalability and that because of trust. I know some of us here just curious for this DeFi but would like to think these things
https://www.letslearnfinance.com/advantages-and-disadvantages-of-decentralization.html

DeFi is a decentralized, public ecosystem of financial services based on public blockchains, mainly Ethereum.
It includes all the most important aspects-lending, trade within decentralized structures. Any Internet user can interact with the ecosystem and manage assets. this is the main advantage of DeFi.

Drahzar

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Quote from: Indiana1990 on December 01, 2020, 05:51:41 PM

Quote from: Drahzar on December 01, 2020, 02:29:29 PM

As for me, now I'm totally focused on defi projects, coz there I got good returns. i started from investment in UNI and had nice experience. Of course, I'm looking into tokenomics, owners credibility and tech stack

Agree. For now credibility is so important thing. I just read about xsigma exchange - looks simple and tokenomics is profitable. We'll see how it will be done in future

Yeah know them. They baked by a public company so there's good chances they will do well

Wapfika

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Defi is very risky, if you choose the wrong project then you will lose. On the other hand, Defi also offers faster profits and staking options which allow you to get profit by becoming LP. So far I see defi as a trend that is too risky (in my opinion), to be honest I prefer to invest in top coins

Deif is only good as short term investment, like buying it today and jsut keep on using it for a week agile monitoring its hrap to not missed any problems. While the thread is already from December its only by now during quarantined and lockdown many DeFi projects have shown potential cause by the hype. Coins from last year hopefully still actively traded up to now to have a pick on which DeFi projects is better.

Indiana1990

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Quote from: Drahzar on December 01, 2020, 02:29:29 PM

As for me, now I'm totally focused on defi projects, coz there I got good returns. i started from investment in UNI and had nice experience. Of course, I'm looking into tokenomics, owners credibility and tech stack

Agree. For now credibility is so important thing. I just read about xsigma exchange - looks simple and tokenomics is profitable. We'll see how it will be done in future

Dragonfund

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DeFi is sweat with APY that's why you see lots of people investing in them, you should also know that most of these ideas are on paper, when it's high time for them to be implemented, that's when you began to see the other side of the projects.
As you said, the project might not be bug free even despite audit carried out on this projects. I wouldn't even advise any to invest on DeFi projects and I have my reasons.

There are cases were Hackers tampered with smart contract and move out liquidity from projects
There are also cases where projects happened to have anonymous team, this is unhealthy and will create lck of trust especially when there is no transparency.

Avoid DeFi, my two cents.

Twinkledoe

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Quote from: fia_naila on December 01, 2020, 03:09:20 PM

My though about DeFi.

DeFi is still baby and on trial and error phase. But that is juat like a how bank work. The different is in " DeFi " we know the actual money in that platform. How much locked and how much the liquidity, while konvenaional bank can manipulate their ledger, their asset and profit. Also in DeFi we as a supporter of the platform we get more profit then put it in the bank.

This is not financial advice. Its just my opinion.

The situation of getting more profit depends on what Defi project are you investing with. It is true that we can have more profit on this but you need to select carefully which ones are worth taking the risks. You will be lucky if you chose a good one that will provide you passive income. As most DeFis are scam, better choose the established ones.

jacafbiz

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For now Synthetix and MakerDao team seems to be doing a great job, the thing we need to keep in mind is that all these projects are still experiment and have been hugely successful so far, the most important thing for them is to keep innovating and make their code bug free, this they get these two right then both will continue to grow

fia_naila

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My though about DeFi.

DeFi is still baby and on trial and error phase. But that is juat like a how bank work. The different is in " DeFi " we know the actual money in that platform. How much locked and how much the liquidity, while konvenaional bank can manipulate their ledger, their asset and profit. Also in DeFi we as a supporter of the platform we get more profit then put it in the bank.

This is not financial advice. Its just my opinion.

Slingshot

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Defi projects really increased crypto market even those that hasn't heard of cryptocurrency got to know through defi moon and awareness. I love defi despite the fact scammers are already trolling in but it made many people. I personally gained from defi and many did including uniswap airdrop which gave many good cash.

Drahzar

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As for me, now I'm totally focused on defi projects, coz there I got good returns. i started from investment in UNI and had nice experience. Of course, I'm looking into tokenomics, owners credibility and tech stack

emmybd

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Defi has become the buzz word of this year. But it's unfortunate that Defi is not completely safe. Defi is not stable at all. Defi is not capable to be changed in size or scale. Low liquidity and smart contract problems are also major issues of Defi. Insurance plays an important role but Defi has neglected that.
People think that Defi is free of risks and issues. But it's not true. If someone lose funds by mistake no one will take the responsibility. Defi is a new service as a result it's not 100% safe and accurate. It has some default and security issues. There is major lack of protection in Defi service. There is a high possibility of lose in this platform. Hacker can hack the device and it's not safe for users. So it can be said that Defi is not 100% safe.

ololajulo

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Quote from: tuchenvi on November 25, 2020, 03:26:56 PM

first of all before entering defi market, all we need to understand what defi concept exactly is, and since we will understand that it's not a "new ICO" hype, it will be much easier to distinguish scams from great opportunity. as for me, i strongly believe in defi exchanges, so I analyze and invest mostly in these projects

This understanding is getting clear that DEFI will thrive well without centralized exchanges but I am worried if the concept will not be exploited by scammers. new DEFIs are trying to be complete decentralized without support from anyone, they pose not to offer any other service that build use cases for an active token in the market. I always consider new ones with known partners both in cryptocurrency and financial institutions.

retalids

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Quote from: DEMER on November 25, 2020, 10:43:04 PM

Quote from: tuchenvi on November 25, 2020, 03:26:56 PM

first of all before entering defi market, all we need to understand what defi concept exactly is, and since we will understand that it's not a "new ICO" hype, it will be much easier to distinguish scams from great opportunity. as for me, i strongly believe in defi exchanges, so I analyze and invest mostly in these projects

btw there's a lot of cool defi exchanges announced - i just read about xsigma project, cool financial model, and they promise simple functionality and transparent technical base. so i'm watching them)

yes i know them, it might be interesing project, at least because they backed by a public company

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Quote from: bussybuddy on November 26, 2020, 01:12:33 AM

Quote from: Aletheaminlin on November 26, 2020, 12:38:14 AM

Both of the projects that you are mentioning here are big ones in this market, so I think a level of safety is guaranteed for the user. But in this market, be very careful because even top projects are hacked by hackers and take a lot of money.

I totally agree with you on this, the projects that the OP is talking about are big projects in the market and they also made a big splash this year. But that doesn't mean that everything is 100% secure here, as what i see in DeFi currently has a lot of hacks going on and a lot of good money as well as a large exchange this year hacked. The selection of projects that have a lot of support and trust from this market will help your assets be more secure and also support policies if hacked attacks.

every time crypto will always receive the arrival of a new system. will always be successful at first and should be able to survive, because the system used is very good. but we know that many people always misuse the opportunities that exist, to be able to play with and even cheat so that in the end the existing system becomes tarnished. make investors to hold back and not do things that would be detrimental. This is the main point in all crypto systems and there can be no reference that the fraudster is not too free because it is clearly detrimental to many people.

bussybuddy

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Quote from: Aletheaminlin on November 26, 2020, 12:38:14 AM

Both of the projects that you are mentioning here are big ones in this market, so I think a level of safety is guaranteed for the user. But in this market, be very careful because even top projects are hacked by hackers and take a lot of money.

I totally agree with you on this, the projects that the OP is talking about are big projects in the market and they also made a big splash this year. But that doesn't mean that everything is 100% secure here, as what i see in DeFi currently has a lot of hacks going on and a lot of good money as well as a large exchange this year hacked. The selection of projects that have a lot of support and trust from this market will help your assets be more secure and also support policies if hacked attacks.

Aletheaminlin

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Quote from: r32godzilla on December 24, 2019, 09:31:08 AM

Hello, I just learned something about DeFi, I would like to know your opinion about that. I am talking about MakerDao or Synthetix for example.

It is really 100% safe as it claims? It should be protected by smart-contract, but who knows if it is 100% without a bug? The problem is that you can´t reverse the tranaction when it happens and investors will loose their money. It looks like a good alternative how to leverage or hedge your position.I think that now it is the best time to learn something about it because you can easily grow your portfolio thanks to secured loans (it is not so likely that the Ethereum will fall by more than 50% to endanger your leverage position). Those who do not know anything about it, here is a good example: you can lock for example 1000USD in ETH to the DeFi smart contract and you will get loan worth 500USD (in Dai tokens), you buy more Ethereum and when price goes up, you will need to pay only 500USD to unlock your Ethers.

Also there were some DeFis that didn´t survive for example NuBits. Do you know about others one successful or unsuccessful?

Both of the projects that you are mentioning here are big ones in this market, so I think a level of safety is guaranteed for the user. But in this market, be very careful because even top projects are hacked by hackers and take a lot of money.

suparigach

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I like DeFi - decentralized finance. DeFi - decentralized finance is very good concept. DeFi - provides decentralized finance p2p service. And provides some security. DeFi - decentralized finance has given good profit to their holders. Decentralized finance provides loans to the holders which is very useful to the holders.

DEMER

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Quote from: tuchenvi on November 25, 2020, 03:26:56 PM

first of all before entering defi market, all we need to understand what defi concept exactly is, and since we will understand that it's not a "new ICO" hype, it will be much easier to distinguish scams from great opportunity. as for me, i strongly believe in defi exchanges, so I analyze and invest mostly in these projects

btw there's a lot of cool defi exchanges announced - i just read about xsigma project, cool financial model, and they promise simple functionality and transparent technical base. so i'm watching them)

tuchenvi

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first of all before entering defi market, all we need to understand what defi concept exactly is, and since we will understand that it's not a "new ICO" hype, it will be much easier to distinguish scams from great opportunity. as for me, i strongly believe in defi exchanges, so I analyze and invest mostly in these projects

Hypnosis00

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Quote from: r32godzilla on December 31, 2019, 08:03:24 AM

I pray for the world where I don´t have to trust the other side with I do the business. Blockchain ans smart-contracts made a real revolution in it, but we are still far away from trust-less protocol, right?
And what about other blockchains, am I understand correctly that Cardano´s network will be more strong against hackers due to its unique coding?

Yes, we are too far from happening and quite to say that people are still confident for not using online loans, or whatever it is in terms of financial scalability and that because of trust. I know some of us here just curious for this DeFi but would like to think these things
https://www.letslearnfinance.com/advantages-and-disadvantages-of-decentralization.html

r32godzilla

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I pray for the world where I don´t have to trust the other side with I do the business. Blockchain ans smart-contracts made a real revolution in it, but we are still far away from trust-less protocol, right?
And what about other blockchains, am I understand correctly that Cardano´s network will be more strong against hackers due to its unique coding?

btc_angela

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Yes, I have heard about this DeFi but never had a chance to understand it fully.

Anyways, regarding OP's question, no one is safe here in this ecosystem. Hackers, scammers and even project themselves failed in an instant. So this whole new Defi thingy would be the next thing after IEO but just like the rest of it's predecessors chances are it might fail because there is a huge risk involved.

tabas

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Quote from: r32godzilla on December 29, 2019, 05:43:39 AM

Quote from: tabas on December 28, 2019, 08:07:52 AM

I've been hearing this lately but it seems that the explanations here made me understand it quickly.

Quote from: r32godzilla on December 28, 2019, 07:59:33 AM

You give Ethereum tokens as a collateral - locked in smart contract and for this you will get loan in DAI tokens (USD stable coin). So you can buy more Ethereum tokens with these DAIs. If Ethereum grows, you are in a bigger profit, but if Ethereum falls, the situation is worse for you. Cheesy

If this how its system works, it's almost the same as leveraging in bitmex right?

Yes, pretty similiar, here you lend coins from Bitmex (traders).
This is a decentralized way how to leverage your position. Also there is a way how to hedge your position, good for miners for example, that want to secure their profits.

Platforms like this are secured from any intruder? since it's decentralized, we can't say what are the hackers thinking since there's a huge sum of money deposited.
We like decentralized platforms like this because it can't be manipulated by the owners as they do with centralized but, the question and concern still lies with the security.

magneto

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Quote from: r32godzilla on December 24, 2019, 09:31:08 AM

Hello, I just learned something about DeFi, I would like to know your opinion about that. I am talking about MakerDao or Synthetix for example.

It is really 100% safe as it claims? It should be protected by smart-contract, but who knows if it is 100% without a bug? The problem is that you can´t reverse the tranaction when it happens and investors will loose their money. It looks like a good alternative how to leverage or hedge your position.I think that now it is the best time to learn something about it because you can easily grow your portfolio thanks to secured loans (it is not so likely that the Ethereum will fall by more than 50% to endanger your leverage position). Those who do not know anything about it, here is a good example: you can lock for example 1000USD in ETH to the DeFi smart contract and you will get loan worth 500USD (in Dai tokens), you buy more Ethereum and when price goes up, you will need to pay only 500USD to unlock your Ethers.

Also there were some DeFis that didn´t survive for example NuBits. Do you know about others one successful or unsuccessful?

You're absolutely correct. There is still a degree of trust involved in these protocols despite their name as DeFi.

I've personally seen other stablecoins that are supposedly decentralised completely fail to keep their value. Nubits is one of the prime examples, but also BitUSD, you can see huge fluctuations in value from time to time due to the illiquid nature of the markets.

Decentralised finance is kind of a buzzword being thrown around right now as well. So if you see any project that is advertising themselves as such, just think twice before buying into the hype.

DarkDays

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Quote from: r32godzilla on December 24, 2019, 09:31:08 AM

Hello, I just learned something about DeFi, I would like to know your opinion about that. I am talking about MakerDao or Synthetix for example.

It is really 100% safe as it claims? It should be protected by smart-contract, but who knows if it is 100% without a bug? The problem is that you can´t reverse the tranaction when it happens and investors will loose their money. It looks like a good alternative how to leverage or hedge your position.I think that now it is the best time to learn something about it because you can easily grow your portfolio thanks to secured loans (it is not so likely that the Ethereum will fall by more than 50% to endanger your leverage position). Those who do not know anything about it, here is a good example: you can lock for example 1000USD in ETH to the DeFi smart contract and you will get loan worth 500USD (in Dai tokens), you buy more Ethereum and when price goes up, you will need to pay only 500USD to unlock your Ethers.

Also there were some DeFis that didn´t survive for example NuBits. Do you know about others one successful or unsuccessful?

You never know 100% if there isn't any bugs in a system unless you actually do your own audit. However, to do this, you will need to be able to understand how the smart contract operates (including all of the functions it can call to in other smart contracts).

Therefore, unless you understand all the programming languages used by the smart contracts, you'll need to rely on third party audits.

With that said, exploits have been discovered in DeFi projects in the past, including the infamous DAO hack that occurred a few years ago. Therefore, although it's less risky than using centralized platforms, some small risk will always exist.

knuckey

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Talking about DeFi, then I found the Jarvis Network project. When reading an announcement about it, it looks very interesting and promising, but unfortunately this project has not been launched and reportedly the alpha version will be launched in Q4 this year.

Jarvis Network: delivering decentralized finance to everyone

r32godzilla

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Quote from: tabas on December 28, 2019, 08:07:52 AM

I've been hearing this lately but it seems that the explanations here made me understand it quickly.

Quote from: r32godzilla on December 28, 2019, 07:59:33 AM

You give Ethereum tokens as a collateral - locked in smart contract and for this you will get loan in DAI tokens (USD stable coin). So you can buy more Ethereum tokens with these DAIs. If Ethereum grows, you are in a bigger profit, but if Ethereum falls, the situation is worse for you. Cheesy

If this how its system works, it's almost the same as leveraging in bitmex right?

Yes, pretty similiar, here you lend coins from Bitmex (traders).
This is a decentralized way how to leverage your position. Also there is a way how to hedge your position, good for miners for example, that want to secure their profits.

tabas

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I've been hearing this lately but it seems that the explanations here made me understand it quickly.

Quote from: r32godzilla on December 28, 2019, 07:59:33 AM

You give Ethereum tokens as a collateral - locked in smart contract and for this you will get loan in DAI tokens (USD stable coin). So you can buy more Ethereum tokens with these DAIs. If Ethereum grows, you are in a bigger profit, but if Ethereum falls, the situation is worse for you. Cheesy

If this how its system works, it's almost the same as leveraging in bitmex right?

r32godzilla

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Quote from: tenakha on December 26, 2019, 09:17:04 PM

Obviously I am not interested in p2p financial systems like this. But the subject you mentioned at the end is intriguing to me. Is the amount you give them as a collateral is calculated with the value in USD? So if you keep the $1000 ETH in your wallet, will not you earn more? Moreover, there is always a greater chance that such systems are scam. That is why, whatever you do, always consider your safety as the most important factor.

You give Ethereum tokens as a collateral - locked in smart contract and for this you will get loan in DAI tokens (USD stable coin). So you can buy more Ethereum tokens with these DAIs. If Ethereum grows, you are in a bigger profit, but if Ethereum falls, the situation is worse for you. Cheesy

CjMapope

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Quote from: r32godzilla on December 24, 2019, 09:31:08 AM

Hello, I just learned something about DeFi, I would like to know your opinion about that. I am talking about MakerDao or Synthetix for example.

It is really 100% safe as it claims? It should be protected by smart-contract, but who knows if it is 100% without a bug? The problem is that you can´t reverse the tranaction when it happens and investors will loose their money. It looks like a good alternative how to leverage or hedge your position.I think that now it is the best time to learn something about it because you can easily grow your portfolio thanks to secured loans (it is not so likely that the Ethereum will fall by more than 50% to endanger your leverage position). Those who do not know anything about it, here is a good example: you can safe for example 1000USD in ETH to the DeFi smart contract and you will get loan worth 500USD, you buy more Ethereum and when price goes up, you will need to pay only 500USD to unlock your Ethers.

Also there were some DeFis that didn´t survive for example NuBits. Do you know about others one successful or unsuccessful?

i have to be honest, i just can't trust these services offering lines of credit or loans on your crypto.
i understand they take atleast 100% as collateral, but i always felt like BTC was developed as a direct solution to debt, and that debt+cryptocurrency should not mix
of course thats just my opinion, i have seen a few services now, tho i havent heard of "DeFis" i admit till now (i tried nexo, same thing, but thought it was dumb personally)

Lottoshi

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It’s still unclear who Defi’s core users will be, and unclear who will be driving future demands, on the other hand CeFi’s borrowing platform has been growing very quickly because institution has been borrowing Bitcoins in large amounts to avoid exposure to their balance sheet and still being able to profit from Bitcoin

tenakha

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Obviously I am not interested in p2p financial systems like this. But the subject you mentioned at the end is intriguing to me. Is the amount you give them as a collateral is calculated with the value in USD? So if you keep the $1000 ETH in your wallet, will not you earn more? Moreover, there is always a greater chance that such systems are scam. That is why, whatever you do, always consider your safety as the most important factor.

r32godzilla

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Quote from: avikz on December 24, 2019, 10:41:33 AM

Nothing in this crypto world i 100% safe! Especially those p2p lending platforms who are offering interest to the depositors. Smart contract doesn't really play any role in securing your money!

These kinds of business functions on percentage difference similar to the banks but they are more prone to market risks because they don't have backup from the venture capitals or any similar organizations. So if you are looking to earn some passive income, be very very cautious!

And that is problem, I thought that cryptocurrencies and blockchain technology is said to be trustless protocol and it should be. But maybe the problem is that cryptocurrencies are still pretty young and not tested enough against various bugs or hacks. Maybe after few years we will be able to finally say that cryptocurrencies and smart-contracts are safe. I pray for this future without any intermediary.

GreatArkansas

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Decentralized Finance (DeFi) is of now is kinda not yet popular, maybe due to bear market? Don't know. But you are correct that Decentralized Finance (DeFi) is good to explore it and start using it, (use it not only for profits but just like what we do in real life, like loan, using some banks, etc.)
There are only lot of projects now about DeFi, just like whay you mentioned, the MakerDao which is the only one I'm familiar with.

avikz

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Nothing in this crypto world i 100% safe! Especially those p2p lending platforms who are offering interest to the depositors. Smart contract doesn't really play any role in securing your money!

These kinds of business functions on percentage difference similar to the banks but they are more prone to market risks because they don't have backup from the venture capitals or any similar organizations. So if you are looking to earn some passive income, be very very cautious!

r32godzilla

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Hello, I just learned something about DeFi, I would like to know your opinion about that. I am talking about MakerDao or Synthetix for example.

It is really 100% safe as it claims? It should be protected by smart-contract, but who knows if it is 100% without a bug? The problem is that you can´t reverse the tranaction when it happens and investors will loose their money. It looks like a good alternative how to leverage or hedge your position.I think that now it is the best time to learn something about it because you can easily grow your portfolio thanks to secured loans (it is not so likely that the Ethereum will fall by more than 50% to endanger your leverage position). Those who do not know anything about it, here is a good example: you can lock for example 1000USD in ETH to the DeFi smart contract and you will get loan worth 500USD (in Dai tokens), you buy more Ethereum and when price goes up, you will need to pay only 500USD to unlock your Ethers.

Also there were some DeFis that didn´t survive for example NuBits. Do you know about others one successful or unsuccessful?

Topic: DeFi - decentralized finance (Read 428 times)