Defi Space

Discussion in 'Digital Currencies' started by REDBACK, Aug 24, 2020.

  1. REDBACK

    REDBACK Well-Known Member Silver Stacker

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    DeFi surpasses $7B in locked funds, but just six projects hold 90% of capital
    Despite DeFi’s meteoric growth, only half a dozen projects represent more than 90% of the capital locked in the sector.

    The total value of capital locked in decentralised finance protocols has increased 271% in less than two months to surpass $7 billion for the first time, according to DeFi Pulse.

    If the current rate of growth continues, DeFi will be worth more than $27 billion by the end of 2020.

    Aave currently comprises the largest DeFi project, with $1.51 billion locked, followed by MakerDAO with $1.42 billion, Curve Finance with $1.15 billion, yEarn Finance with $845 million, Synthetic with $851 million and Compound representing $797 million.

    Aave recently emerged as the top DeFi project after receiving an Electronic Money Institution license from the United Kingdom Financial Conduct Authority, signaling the sector’s increasing legitimacy.

    However, while DeFi’s aggressive growth trajectory has been fueled by the recent rise of lending protocols that have disrupted Maker’s long-standing dominance over the space, just six protocols represent more than 90% of locked capital in the sector, according to DeFi Pulse.

    While numerous projects have quickly captured the imagination of the crypto community amid the 2020 DeFi bubble, few have been able to establish themselves as long-term leaders within the sector.

    The recent dramatic rise and fall of Yam Finance offers a precautionary tale illuminating the potential severity of contract risk, with more than $750,000 worth of crypto lost alongside the protocol’s collapse. DForce also suffered a multi-million dollar hack in April; however, the stolen funds were returned by the hacker and given back to investors.

    Industry leaders have warned of over-exuberant bullishness in the DeFi sector, with Compound founder Robert Leshner recently tweeting:

    If https://t.co/9Kn1cUvYq8 has $500 million less than 36 hours after launch, the industry needs to self-regulate and stop launching these meme farming games. https://t.co/IyJSw9zS43

    — Leshner (@rleshner) August 18, 2020
    Earlier this month, Ethereum co-creator Vitalik Buterin also wrote, “You do not have to participate in ‘the latest hot defi thing’ to be in Ethereum. In fact, unless you *really* understand what’s going on, it’s likely best to sit out or participate only with very small amounts.”
     
  2. inmizu

    inmizu Active Member

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    'BNT is a pretty simple premise - you can swap your coin for any other coin, without needing someone else to complete the exchange with'

    Hmmm . .

    An exchange: https://www.altilly.com/

    A crypto-exchange platform: https://swapspace.co/
     
  3. REDBACK

    REDBACK Well-Known Member Silver Stacker

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    I think this video from Nuggets news is worthy of posting because it covers some important points re the Bitcoin Defi/Alt coin
    paradigm and trading tips.
     
  4. inmizu

    inmizu Active Member

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  5. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    Remember when SALT was at the forefront of DeFi back in 2017?


    upload_2020-9-22_18-11-59.png
     
    kilo likes this.
  6. dozerz

    dozerz Well-Known Member Silver Stacker

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    welcome back @BuggedOut still writing for steemit?
     
  7. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    Thanks. I've been back poking around on SS for a while now but I haven't been in this sub-forum for a while.

    The STEEM story is a long one but I haven't really been on there since Justin Sun centralised the chain earlier this year. I blog occasionally on HIVE now - which is the fork of STEEM and where most of the international stacker community moved to when it all hit the fan.
     
  8. Soprano16

    Soprano16 Well-Known Member Silver Stacker

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    I remember holding a bag of SALT and watching it go over $20

    Didn't sell near that high, but did sell around $13 mark if I recall

    Haven't looked at SALT in a very long time - last I heard it was basically a scam coin which would explain it's plummet into oblivion
     
  9. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    In its heyday it had some credibility - about as much as many of these DeFi coins have in 2020. At least SALT was pioneering the DeFi concept back then rather than just riding the hype train.

    Many of this current crop will share the same fate and in hindsight people will realise that a lot of them are just scam coins. But don't ask me which ones because I haven't done any homework yet :)
     
  10. Soprano16

    Soprano16 Well-Known Member Silver Stacker

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    No doubt

    The DeFi craze has all the traits of the ICO craze of 2017

    That being said, there will be some very solid and long term projects coming from this, but like the ICO craze a lot of these are going to end badly

    On top of that we've got yield farming and NFT's in the current craze too

    Like I always do, I'll continue to be very selective and limit what I enter - long term fundamentals > hype. I'll miss the crazy gains and pumps from a lot of the hype coins, but I'll sleep easy at night and not have to worry about getting ripped
     
  11. inmizu

    inmizu Active Member

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