Bitcoin Forum

What is DeFi or  (Decentralized Finance)?

DeFi is an ecosystem of Decentralized Applications (Dapps) that provide
financial services built on top of distributed networks with no governing authority OR the movement that allows users to utilize financial services such as borrowing, lending, and trading without the need to rely on centralized entities or third parties. All these Services are provided trough Dapps. And Most of these Dapps are on Ethereum blockchain. But not Ethereum Blockchain only.

So, Recently, I noticed that Every coin related to DeFi is trending everywhere or trending on most cryptocurrency market tracking websites such as coingecko and coinmarketcap. So, these Remind me of 2017 where there are many cryptocurrency scams and shit projects like this image below with one man Team.

Then, it was because new people are just coming into the cryptocurrency and they feel like everything is safe. So, they just wanna keep buying.

Now that DeFi is Around, I've seen some project with no purpose related to DeFi but they are also a DeFi projects. And they once trend too. A lot of people are investing in these projects and  I can sense great loses coming to traders or holders in future.
My Advice for everyone is to invest responsibly and if you want to invest irresponsibly, invest on a DeFi project with well know team and good partners.

By the way, I will like to see more advice and opinions of others. I know we can all learn more from experienced people here.

I've seen that "one man" team before. I can't remember exactly but it was like a tutorial on how you present yourself in your website or blog. The one image was just used to compare the difference in appearance.

YAM meets your criteria of a project with well known team and good partners but look at what happened to them. It immediately dropped because it was found out there's a bug which affects the token's total supply. It almost died instantly, from $100+ to less than $1 real quick https://coinmarketcap.com/currencies/yam/historical-data/

Follow the discussion here https://bitcointalk.org/index.php?topic=5268501.0

I don't think yam is scam. The drop was caused by bugs because there wasn't proper audit before launch and there was an abnormal increase in total supply due to the rebase feature of the token, many investors get larger amount of yam.
Anyways, thanks. I will follow the discussion

Well to me investing in DeFi project is not a bad idea after all the main goal of majority in crypto is to maximize profit be it through a Defi project or none Defi project, but what investors should put into account is knowing the type of Defi project to invest in and also know the time frame you want your investment to exist, short, mid or long term base, this can help in managing losses,
In my opinion I think some of the Defi project are worth holding in a while given their road map and project fundamentals, but I won't be making any recommendations to anyone, do your due diligence.

What's new?
From the start of the shitcoin madness in 2013, there have been coins that served no purpose.
Then blockchain naming madness started, companies that nothing to do with the IT&C sector suddenly became "blockchain" companies.
With ETH up and running we had tokens that were claiming to bring water to Africa, education to SE Asia, provide medical cures, revolutionize everything, you could start a smart contract with your cat...and basically that was all.
And now it's defi, a term so vague and at some times applied to such so idiotic projects that will also come and go.

Poor IEOs, they were such a fad, never got their chance.


How do you call things that are rushed and launched without double checks in order to get as much money as fast as they can?
Maybe it wasn't a scam..., but money got burned in an instant, how would people that have bought that shit react, they have lost their money on false promises which still sounds a lot like a scam, so in the end no matter how many times you go round the bush and beat the crap out of it, it's still a scam.  ;D

It's cyclical, now everyone wants to launch Defi+x name of the project, so bring more hype. This is really similar to 2017, but we haven't seen anything yet. This is just the beginning and it could explode more. than ICO.

Just used our common sense, be rational and don't FOMO.

@stompix is right, they lost their own governance, what a waste, almost $750k was lost because of that critical bug, no testing whatsoever.

You have a point about the Yam project. If I've look at it in this way too, I would have said Yam is relating to scam. The dump might actually be part their plan to get enough funds and put blame on something else.

I won't say confusion because all the big exchanges cashing out of this hype aren't confused probably the new Investors looking for new opportunity are the ones that would be getting confused. Using greed in the statement above should be the right word. Something like 'Defi coins has turned the market into a state of greed'. Kucoin exchange can't stay a day without tweeting about the next big DeFi project they'll new listing which just make me begin to hate the exchange the more. Guess that won't matter because all exchange are guilty in some way on this issue.

DeFi as a trend has brought impressive profit to some traders so has it made many find themselves in unrecoverable losses, you just have to be cautious to avoid them losses. I have a been on both side of the coins so I know that feeling. The easiest way to play it safe is to keep sating bitcoin and ignore the hype.

Basically what is going on with DeFI is pretty much what happened with most small-medium cap coins back in 2017. There were ICOs or coins with little value that pretty much went 100x for no reason. Remember Crytopia, I remember that people pretty much bought any coin on that exchange because it was a given that they would at least 10x their investment.

This is pretty much what is happening with DeFI right now and if you look at the ETH gas fees you will see that most of them are a result of these DeFI transactions. Hence its starting to get a little out of hand. And the proof is when Arthur tweets about investing on his Twitter.

I am finally glad that someone figured it out, I have said the same thing over and over again for a million times but unfortunately I am just one person but I will not stop saying this because when the day comes and people realize that defi is not really something you should have invested but something people hyped about too much, I will be right and I will be able to provide a proof of it with my messages later on when I will tell people "I have said so" before they lost their money and warned them. At the end of the day there is really nothing you can do but create awareness about it to people, that is the only thing we have the power to do.

Defi is not useless, it is not irrelevant, it is definitely something that could be used, but people are overreacting to it and overspending on it.

I'm pretty sure these "DeFi" platforms thingy has been a thing for a while now, even before the 2017 bull market. It's just that the Ethereum bulls have found a new good sort of "title" for these projects to make it sound more brand new and revolutionary.

And surely so, some people(especially the newer ones) think that "DeFi" is some sort of big deal.

The Defi projects made them money by lending and doing so made people invest because they can also make money. With this enough motivation to hype, there is no doubt that they will also be jumping into these projects and even trading those Defi tokens is worth doing. If they were listed by big exchanges, it must be worth investing.

The Defi platforms is a lot more confusing though. I have tried Aave for once and I got lost easily thinking only the best minds can learn how it would work.  ;D

I do not think that defi coins have turned the market to confusions, instead I say investors are the one confused about when or if not to invest in defi coins. At the moment, defi platforms allows more profit for investors and virtually all projects can run defi irrespective of the stage of development.

It is up to investors to do their own research and avoid confusion

That indeed sadly seems to be the response. To some the buzzword 'DeFi' is anonymous to money but of course that's not true because there are so many 'DeFi' projects coming through that by chance some if not most will be blatant scams.

The word of caution here is that just because its a DeFi project doesn't mean it will succeed or that it requires no research. This is the same hype as we first saw with crypto initially, so history sort of repeats itself but this time with DeFi.

Its a magnet when people see opportunities to earned surely they will be attached without any doubt
and start following and participate to the this trend.


More people get attached when project/s being offered inside big exchange, interest are flowing
as investors doesn't want to be left behind.


It takes time and dedications to learn how you wanted to work with DeFi and those offers behind
this system.

Very well said and its no surprise that most exchange will surely jump in with the trend even with the most popular platforms out there since we know that hype can really give out potential profits yet people
will surely dive in and make use which will really add up on exchange total volume and of course in revenue itself.

I dont know why people are really much being hyped with this and for new people who do just recently know about crypto through DeFi projects then these fellas would definitely experience loss yet they dont know on
how this market do behaves when it comes to pure pump and dump projects that had been just masked up by the current trend.

For those people who had been here on this market for a while can really take advantage or do take the risk on riding with this and make money.Later on, they do cash out smartly since
they are already aware on what would happen next.

That's right, confusion is mostly appropriate to these investors, whether new or old ones in crypto. Because definitely, these exchanges are not confused of raking money from these users who are willing to get on board with the current hype. I am seeing another ICO-fate scenario here in the very near future. If users will not be careful, this will be another breeding ground of scammers and actually it is already happening. As we have observed, a lot of these DeFi-related projects suddenly launched and some are suddenly awakened from their grave. I hope investors are smarter now and not fall for every DeFi project introduced and listed especially in Uniswap (just making an example here).

The picture is obviously the same person and the owner will definitely know that. It's just a demo and not something real. However, this is the season. Many people have been talking about Defi for quite some time now. Some projected the time it would become what many would run after and it is happening already.

The only thing that it makes confusing is that a lot of coins get hyped without knowing which one will have a long-term run or just it shut down after the owner gets what they want(money). Some investors benefited from these projects but the others suffered losses most especially for the newcomers. Hypes isn't new to us and we probably know what happens next ( dumps). people who'd come during the hypes usually leave with disappointment, this is what it happens the last Bullrun.

That is why I keep ignoring these Defi hypes because I'm not confident with it rather than sticking into Bitcoin. The potentiality that Bitcoin have its big difference from those altcoins that just being hype.

in the end all will be shit projects. DeFi is just a new way to raise money and after that nothing. the only thing that awaits is a loss for new investors. So take a look and think again when you want to invest in a DeFi project. I really like this new Hype, but to invest is not possible. it's better to be a trader than to invest in one of the DeFi platforms. at this time there are also starting to appear that there are many problems, it is only a matter of waiting for the hype to fade.

Defi investment is now a trend that many investors are interested in and I feel it is definitely the best way to make a profit during this period. However, there will certainly still be scam projects as this investment is very similar to ICO and there will be a lot of risks that need to be avoided. I think carefully when deciding to buy because just one small mistake can cost you money during this time.

In fact, every day there are always DeFi projects present. And it's also uncertain whether they are just following the trend right now or are really serious about development. In such a situation, investors should be careful in choosing DeFi projects. Because it is feared that many parties take advantage of the situation and the purpose is only for fraud. before investing, DYOR!

This is not going to save people in the long run. DeFi is fundamentally broken, it's not a revolution, it's just a toy for crypto-to-crypto trading. If even Bitcoin fails to get mass adopted, this collection of tokens and shitcoins has no chance to go mainstream.

And what this means is that people who hodl DeFi tokens are going to regret it, they'll see 90% drop from the ATH in a few years, just like it happened with ICOs. So, dump your DeFi when you'll get a decent profit. Don't be greedy, and don't become attached to it.

Defi now has been swarming with a lot of new projects and been rugged by developers. Piece of advices to all those who will joined is avoid anonymous team. There are lots of cases where team will be gone after raising too much money from presale.

One of my friend invest 2 eth and the next day the team gone like a wind. With almost more than 500 eth accumulations. There are lots of good defi but seriously would you invest money on a suspicious project? Better keep your hands of to these.

if the team is anonymous this is not a sign of a scam. If we're talking about Defi, then anonymity is okay. there are many other factors that can make your investment safe

of course it will be used by some people to take advantage, defi is not new in the crypto world, even from 2017 there have been many defi projects, but the form has only increased this year due to weak economic factors, and defi uses the theme of decentralized finance, so it is very timely in its current state.
some projects that use defi have also been scam or failed, because they don't have anything in the roadmap.

I feel pity for new crypto investors who are here to make money fast without doing their own research first, many scammers will eventually start taking advantage of DeFi just with any move available, a word is enough for the wise, invest only on popular DeFi projects and be extremely careful with new DeFi projects

The market seems OK and im not confused. But we must careful from some DeFi projects because there are several projects make their project from not defi related into a defi project to gain more attention.
Some defi projects are good, for example is Corionx, they are the partner of Syscoin and have done AMA in Binance telegram group few days ago.

Some greedy fellows are taking advantage of the DEFI craze to launch scam projects. I laughed so hard when I saw the image posted by OP, one man team with different hair styles posing as team members. So many old projects going under the DEFI category just to gain attention, even while drifting from the original project aim. How can a project with project aim on gambling drift to DEFI, looks more like a cashout plan. Let's be careful how we invest this period.

The picture is a Demo. But this kind of thing happened some years back and many users didn't even look at that side... They just blindly invest and join ICO.

First DeFi protocol is MakerDao, it was founded in 2015. It takes 5 years to realize that DeFis are interesting? But while MakerDao is here for 5 years and it is well tested, other DeFi protocols are here for a few days, some of them do not have audits and it could easily turn into a disaster for all investors.  ::)

The Hype is just so much and so many project start changing their White paper. I understand it is a new normal but at this rate it will fade away soon. Let's just brace

It's defi season.. Everything come and go, let's just hope this stays. Also, it's a good thing if traders take there chances to make good profit. There was ico, IEO, deflationary and now it's defi. I actually love the defi season tho and whoever brought this to light is a genius, only we don't know how long it stays.

It's a good thing for everyone to be careful as we invest, most especially in Defi projects, since we're aware that it's the new bait used to deceive the investing public. I just got to know that Defi projects uses dapps built in ethereum platform. I really don't know how the lending and borrowing of funds works without a centralised impact.

The most dangerous among all.  #Defi projects aren't bad per se but their hypes aren't worth weigh their true identity, most of their case use aren't getting interested as for me. Mind you, those projects called #defi should be monitor closely for those who still thought it's a good means to make some free bite. Those old existing projects converting from the original roadmap to new connection due to the #defi language should be watch closely.

How could we hear and see words like: "Binance BNB #DeFi staking"  ;D: the word #defi is synonymous to pumping~and we should be careful. It's now clear that, there is a bigger confusion they're not letting us know.

Defi projects and their hype has really turned the market into confusion, this is seen where a project not Defi related beforehand all of a sudden now decided to add one or two attributes which will make it answer Defi projects, then the team starts looking for a way to make more money. This particular fact is seen in some already developed projects, and in forthcoming projects as well; in addition to this, more confusion is coming if care is not taken because sooner than later scammers will bring their own projects. Therefore, as we are chasing after Defi projects, let's endeavour to make our personal research about the project before investing.

To be honest, that picture in the first post had be burst laughing  ;D.


What really makes DeFi shines compared to other hypes like ICO and IEO is that it is helping a lot of people with their financial needs especially this year of pandemic where in ICO and IEO is solely based on investing. Though I would say that they heed OP's warning since there really are a lot of shitty projects being made right now that doesn't make sense.

Is obvious many project not in any way related to Defi are now running to launch under Defi. This is just because they are aware of how successful some previous Defi project has been and how investors who make good returns with them will be willing to join another defi project to make more profit aswell. So, most of all the current defi project has nothing meaningful to offer and could later result to scam. All investors should stay woke and invest only on defi project with solid investors to avoid been scammed.

The problem is that DeFi is a game played but just a few hundred individuals and most of the DeFi hypetokens are without any value. Also, 4chan and other "expert"-groups have far too much influence on it. Chekc out that BS: https://cryptoslate.com/4chans-chainlink-tendies-picks-made-it-the-top-crypto-fund-of-2020/

Not a confusion for those who know what they are doing, DeFi is progressing but still unsafe for people who don't know how to do some research on new projects, I don't invest on projects that aren't well known or popular

REN is legit and I suggest everyone take a close look at it.

Apart from do some research on projects in this DeFi ecosystem, greed level should be watched for. There are some DeFis lately without much to offer than spontaneous increase in price, x50, x100 etc. The old crypto users are still falling victim of DeFi scam mainly because of lack of discipline and greed.

When you invest in a defi project then I suggest you to be careful because until now you still don't know whether defi can survive at a high price or when the project is launched it can have a price increase or don't just wait because the supply of this defi is very little and there are still no products that use this coin.

We can't trust ICO easily, but by ICO several projects were successful. Without Binance exchange IEO, how Binance coins were successful. By Binance exchange so many projects were gained funds. DeFi could be another hype but some projects will show the future. In stock exchange, the same things happen to us. I'm sure that after DeFi, a new process will be revealed.

Greediness is a sort of most failure that every investor has suffered. This kind of feeling can't easily be controlled, I bet it. It happens that people usually blinded the real intention of a certain project because of the huge offering, a clickbait that could anyone might become a victim to this, newbies, or even those who have been in crypto for a long time.

Could we think that this Defi system will save and minimize scamming activities? It won't, it might be a reason also of big losses if we are not careful in choosing where to invest, because scam projects still there and still looking for their prey.

Knowledge must come first on every investment because its too risky not to study the project and if you see a one man team, you must have to think twice before investing. DeFi works good, but since there's a lot of ICO scam project before people think the same thing about DeFi. There are some good projects that is working well right now, but still you have to invest only on a project that you understand and you really know.

A deep research must have done by everyone. DEFI hype is still unsafe and people must be careful with this thing. SO many new defi projects and the majority of them were selling the hype without try to provide a good product for the users.

Because of the earning opportunity it created huge hype for it which also created opportunities for scammers to enter the market with useless projects.Alread scam projects of DEFI are getting revealed and in future we can witness hundreds of them.

I think the innovations made by developers in the financial world have been good by publishing DeFi as a new trend in cryptocurrency

what I can't accept is when the scammers enter the crowd who are having a good rating like DeFi. they destroy ecosystems and undermine investor confidence

and for investors, don't be easy to believe in investing in a project, because not all projects can go well. for example, consider the profile of the team & developer who drove the project,

You are right the DEFI coin makes a lot of investors or those who invest 'confusion'.

I was thinking in January 2020, to buy a few dollars for defi coins, I was monitoring the market they listed.
Price movements were very confusing and chaotic at that time, they listed on three markets: binance.dex, bit-z1 and bit-z2, the price was oddly unstable.

At that time, the price touched the $ 3 level, now it is: $ 0.2, which is a bad sign for the Southeast Asian coin.
I have to think 10x to invest in defi coins at this point.

It's like seeing 2017 all over again wiht the ICO boom. The idea behind Defi is brilliant, especially for the Unbanked who have no access to the financial system and yield farming pools are a bit like MINING coins. The only thing is you need to get into these projects early and you need to get into one which isn't a scam. Also as many Defi projects are based on ETHEREUM, you got high gas fees, so no use coming in with anything under 150-200 bucks as a pure minimum. I started my hardcore Defi Journey 2 days ago. I decided on my days off to study and go into 1-3 new Defi projects.. once they bloom a bit take out my initial investment, gas cost and a bit of profit and ride the rest. 1st Project am in profit and own 0.5 of the token which is worth around 0.26 eth at the moment , one I invested in presale and got 15% bonus and will be on uniswap on 29th august and also the 3rd one I am yield farming and once I can unstake will see if I am in profit to sell some and stake the rest, depending on the price. Once I complete a cycle will find another 1-3 projects spread the risk and carry on. Plan is to turn 0.5 eth to 50-1-- eth if I minimize my risk and maximize my gains over time. It's an experiment.  :)

hype or not hype , we can expect scammers  . its only our imagination , we think there are many scammer on defi but no worries , scams are getting busted .  i can only feel sorry for those investors that are rushing whenever there is a new investing oppurtunity because they can get easily scammed   . 

defi isnt confusing me  . maybe im only foccusing on older coins ? but it can be for those who invest on many kinds  .

Yes but we can't stop people investing on them, after all this is an open market It might be unsafe and we are really losing money if we don't look closely, but I will say that let them understand and see the consequences for joining this hype. Probably at the end of the year, this Defi bubble will burst just like the ICO, but this time more investors are going to loss huge money, more than the ICO + IEO combine. It's a big scary, but this is how I look at the current pumps that we are seeing.

DeFi is currently a modern buzzword, and this name is used by many projects that have nothing to do with defi. That is simply attractive when you identify with defi

most of the pow oledr coins have totally failed. of course like always eth tokens are untouchable and are vastly just run by thieves. but some of the newer guys deserve a chance to shine where all of the older crash coins like dash zec and others are total objective failures

hello all..
always be careful with flash dumps or flash up markets, if you join for "Fomo", because I see some defi coins that are indicated as scam.

Indeed true mate, at the present moment many projects which are not originally based on the idea Defi are right now making the announcement regarding implementation of the Defi system. Because of the current Defi hype project are using this thing like an opportunity to attract investors towards the project.

DeFi has made the crypto nerds go crazy over investing during this period thinking that the alt-run has officially started and in no doubt will I say this that yes, it has started and will also end soon. All the DeFi shit that is spreading in the market is because of investors who are just pushing these projects higher and higher, and they are waiting on a point where they will make enormous profits and then they will start dumping. Thanks to DeFi, every other coin is pumping crazy and there's no reason to it.

The team really sounds funny, I always tell people to often check project before investing. It's not about hype it's about having serious information lie indept information if what you are investing before going into it to avoid being scammed. Few Defi projects worth investing and many are out there to scam users. Let's always becareful.

Yeah, I also feel oddly scared for how some DeFi project suddenly took the top spot on CMC while many altcoin took years and not even come close to it. I feel a strong sense of denying and couldn't believe it. Pretty much in confusion now and don't know what I should do.

I just laughed at a the team picture you used in your thread. Its so funny. Jokes a part I also like to invest on defi projects. Of course I check the projects before I invest in those. Now why I invest in Defi projcets? My answer is for profit. After all every people in the crypto market invest to gain profit, me too. I know that now a days defi projects became so profitable if you can ride the project on early stages. But yes, we have to be carefull about the projects.

This is iconic statement that rings true when we saw the initial stages of the ICO market when all the coins started pumping to extreme levels and then dumping and that is what we will see in the DeFi hyped era, the investors are looking to pump the coins so that they could attract other gullible investors and then dump and make a substantial profit. I am yet to jump into the hype completely.

Actually, I have no further idea right now about decentralised finance. I just notice that for the recent weeks it dominates the market. A new hype was formed in 2020 and nowadays, there are coins such YFI and YFII or even YFV exist in the market. Well, I know that it is only a hype coin. And let us be aware of them so that the hype in 2017 made by shitcoins were not gonna happen right now.

At a point, i began to think that so many of them will not have the tech, but will want to answer the name DeFi, just because of the hype it now has.
The funny part of it is that, so many projects that are not yet mature for launch, will be released into the space, just because they also want to partake in the hype of this time.

DeFi is simply a wave that everyone wants to ride on. It brings more life to the crypto space kind of. And again, it is causing confusion in a way; as non DeFi projects are now turning to & implementing DeFi Protocol in order to move with the current market wave. It is every investor duty to do due diligence before investing in any DeFi. Scammers are very much around.

You don't have to confuse yourself, all you have to do is to educate yourself on what to look on DeFi projects and how they perform their functions, you don't have to invest in every DeFi projects that comes along some DeFi projects are worth investing and expect a lot of DeFi projects, so far one of the DeFi related projects I'm in is doing great, the name of the project is Oikos.

Actually the main question is is Until when this revolution of DeFi will happen?i mean for How long will tthose project related to DeFi will make Run?
I am confused because in just a matter of months they Move the trend towards them and other non DeFi projects leaves behind?

Sometimes i was thinking if this is a legit Growth or just another Altcoin season alike when 2018 push them?

Absolutely my Point as well mate,actually this is how i look at It seeing even non DeFi shit projects are now getting themselves into this popular one?
so meaning after the wave everything will back to normal and again investors or late comers will be trapped again.

DeFi has become a hype because there is a profit on it, so it's not right to say that it turn the market into confusion as DeFi would really succeed as they offered something investors are looking. However, when we say DeFi, it refers to the entire market of DeFi and this market has different projects inside, but a failure of some projects should not make us think that DeFi is bad.

I hope everyone will educate  themselves first before they start investing into the hype market so they know who's to blame when they fail, and that is themselves.

defi market is growing now. as for me, defi earnings can be huge and interesting not only for speculation purpose, but in long term. I pay my attention on defi exchanges and these projects mostly works for me

since there are defi and uniswap, there are a lot of scammers who run scam projects and they are listed on uniswap at will, when investors enter and the price goes up so drastically and the scam dev sells his tokens there and there is a rug pull

Everyone are just rushing to take their out piece of pie out of DeFi craze that's ongoing in crypto space presently, I m not surprised that we have more scam DeFi today, that happens because DeFi became successful this year, whatever becomes successful in coming year will bring another rush craze just like right now too, investors are the ones that need to be watchful of every steps they make.

oh so u might be interesting in new stablecoin dex - xsigma, just announced and looks credible - they are backed by a public company

cool maybe you'll give me some link/additional information about it?

Decentralized Finance unarguably is at the center of the purpose of creating Bitcoin and the technology behind it, blockchain. And since the past years many great DeFi projects have emerged and doing quite awesome today - projects like Bancor, Aave, UniSwap and a few others.

But it's appalling to see how the ecosystem is being infiltrated today with many shit projects whose sole aim is to scam the public and disappear afterwards. And it seems such projects are becoming more common these days. Once in a while I come across the likes and keep distance.

The investing public owe it to themselves to dictate such projects and stay away from them to avoid losing their hard-earned money.

https://xsigma-lab.medium.com/meet-the-brains-behind-xsigma-defi-d2e89928f3f7 I read here, but you can google them))