Topic: Is DeFi anything? - page 2. (Read 509 times)

I think OP is referring to DeFi which is an abbreviation for Decentralized Finance which is a promising sector utilizing the power of blockchain technology, and the one you've mentioned is a coin with an inaccessible website and last Github activity was on June 2019.

Sorry, maybe we didn’t understand each other. DeFi - Decentralized Finance. At the moment, these are projects that provide an opportunity to invest and borrow cryptocurrency on credit.

I am not sure what you see in this project that you called promising.

yes today it has increase 174% but that is due to very small volume, per https://coinmarketcap.com/currencies/defi/, its volume is less than a dollar.
What kind of project would grow with that?

No. Its just hype.

And there is no "next economic era". It will stay the same old system. They will only implement some new controls, like credit cards under the skin, tatoos with codes, etc. You can see that Tesla guy is already into neurolinks, so in 20 years it will be all connected to your brain.

Cryptocurrencies will continue to be speculative assets, like they always were. As the price goes up, governments will try to control it. They will put limitations to its use, and people will just bow down to it, like they always do. Price can go to one million in eight years, but unless we have some "bitcoin nation" appearing out of nowhere, there will be several restrictions to use it.

Yes, we might see another overhype-type of Defi once we goes on another altcoin bubble.

@1Referee - I'm under the impression that they are going to used stable coins or at least a crypto that is pegged to USD - Dai.


https://medium.com/@airtm/what-is-dai-and-how-does-it-work-20cb356adf20

If defi grows out to become a huge industry, I'm confident that the centralized finance industry will improve the quality of their service further and reduce the fees or in some cases offer free finance to those who really need it.

In fact, it's already happening; there are numerous countries already where you can wire money instantly and for free at any time of the day, even during holidays. I have seen those memes on Twitter where people make fun of banks being closed and that Bitcoin always works, well, banks are getting there as well. Innovation triggers more innovation. Bitcoin innovated the banking sector.

Ethereum's defi ecosystem would be even better if fees could be paid directly in stablecoins instead of Ether. I know there are certain workarounds with smart contracts, but it should be made easy for the common joes who just want to use the simplest form of money.

From the look of things, it will be a profitable sector for investors and traders during the next altcoin/token bubble. That's my primary interest.

The use of trusted third party custody, third party APIs, centralized oracle-type administrators, etc. on "DeFi" platforms makes the "decentralized" characterization somewhat underhanded.

Still, the automation and incentive mechanisms employed are at times impressive (MakerDAO in particular is doing some pretty interesting stuff). I also appreciate that these platforms can make loans and micro-loans much more accessible than now. It's worth pointing out though that a lot of the interest and money flowing into this sector is very speculative. It'll be interesting to see who the Amazons and Googles of this sector will be many years from now.

De-Fi can deliver money at a rate close to 0 (0.01%, for example). This kind of help will be really interesting for them, as they will be able to use the risks of the crypto industry to their advantage, and in this case they will be able to get a fairly high profit.

I can't say it is used perfectly right now but the reality is that the world is vast and finance is even bigger, so maybe one day it would be used perfectly to a point where it helps people who otherwise can't get help from anyone else. Sure, it will take some time before it reaches that point but at the same time anything worth doing takes time to do it as well.

I personally think DeFi will eventually rise to a point where it will basically be bank or any financial institution that poor people around the world in third world countries can take advantage of with the help of the rich people all around the world, and I don't mean rich like Bloomberg rich, I mean rich like you and me because many people in the world lives under 30 dollars a month now, DeFi is for them, not for us (at least not now).

Oh, it's really very simple here. The main De-Fi projects are the usual copying of the most profitable and understandable services in banking. Reminds the lending market of third world countries

Of course, revolutionary ideas come to people's minds. But usually it all comes down to the fact that running a business is a risk, quite large, competition, and so on, and scam is almost a guaranteed profit, with a good ROI. Now projects can easily enough afford loans at 1, 0.01%, at fantastic 0% or even a negative rate, while remaining in the black. True, crypto users are so badly fed with bad projects that even good ideas are labeled “scam”.Scammers used to collect millions of dollars in ICOs. People began to look at ICOs as an opportunity to raise funds. Then, in desperation, the business decided to give a reward, they also began to water the feces. Landing? "Even if a person read only the name of the coin and immediately ran to make a post." I believe our business is to select really promising projects that will exchange real income in the future without any simple actions (no, spam on social networks is horrible, I think this should be prohibited).Or those that make cryptocurrency more accessible and more technologically advanced (Not the projects that build the second JP Morgan, but introduce some imperceptible, but very promising changes at the micro level).

The current financing systems have proven to be deficient in many areas, especially with the rapid development of networks and the Internet, so technology must accommodate these recent changes.

Blockchain will change many financial concepts^[1], but this does not necessarily mean that financing is completely decentralized, "absolute centralization is impossible", so systems will be decentralized more than the current situation.

As for Bitcoin and other cryptos, many cryptocurrencies (Shitcoins) have no value and therefore will die over time, which will remain Bitcoin and a few of the currencies with real projects.


[1] https://ocw.mit.edu/courses/sloan-school-of-management/15-s12-blockchain-and-money-fall-2018/video-lectures/

It is only good as it gets, if projects are not going to take advantage of this so called decentralized finance then how can we leverage it? I think it is more applicable to stable coins though, because as far as I can understand, like "Dai". But we will see, it is too early though, we haven't really touch the surface yet as this point.

Edit: Bitcoin (BTC) is the only DeFi!

It is promising because it's on the first stage and people are getting hype with that because it's a new aspect of innovation in finance. But this could also share the same fate with the forgotten dapps that were also been said to have the potential.

Just like the ICO before, when we have heard of most them to be as promising as we were excited about them but suddenly that expectation was quickly gone after a year.

Ehh. Though I'm not financially invested in these platforms, the "decentralized" finance platforms like MakerDAO are pretty interesting at best so I just check once in a while on Reddit/Twitter what's happening to these platforms. These platforms, and even Ethereum itself are quite centralized unfortunately, which in itself turns me off. Bitcoin is simply the only fairly decentralized platform we have right now so I focus on that.

As with all the fads in the industry, sadly I think we put too much faith in the prospects of decentralized finance. Don't get me wrong, I think it's promising, but will it be the thing that takes blockchain, bitcoin, ethereum, or even stablecoins into the next economic era?