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Hi all, I've been reading here for a while and decided to join your busy place. What do you think about DeFi for the next several years. Will it fade away, like most ICO's, stabilize and get much easier to use, or continue with wildly volatile tokens and hot new projects that keep getting major hacks? I love the subject and think the short and sweet DeFi is a prefect name since the whole internet population is used to WiFi.

What do you think, are we looking at a passing fad, something that gets "re-branded or re-invented" after the hacks settle down, and/or is DeFi currently on a path to keep getting stronger?

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To your question I'd say that DeFi will likely evolve, while some projects may fade, others will stabilize and simplify, making adoption easier. The company will continue to see innovation and growth, but security challenges will persist, prompting gradual improvement. As long as they're not relenting to innovations

Welcome once again!

Unfortunately Decentralized Finance is one of those cool ideas that the shitcoin called ethereum has taken over and have already ruined it. So for now it is associated with creating completely useless shittokens and scamming people using the shitplatform known as ethereum!!!
I don't see anything changing as long as token creating platforms aren't being developed seriously in a truly decentralized way.

BTW this is not the first over-hyped mechanism they've used to revive ETH price though. They keep changing the name of the scamming method and continue their ways: ICO, IDO, IBO, IEO, ITO, STO, DeFi, NFT are the existing ones, each deader than the other.

Comparing Defi with ICO is like comparing a high-speed train with a horse carriage. When one is getting more innovative day by day other one just fades away for not being so innovative. While having a bank account from opening till using it can take several days, your grandma can use a defi application without any hassle. You can do everything that a bank can do with less energy and time consumption, less fees. It's not like the use case has been shifted towards something more innovative.

After so many Defi hack, exploit, and rugg pull we are still here and people are using it. That means there are still so many uses in defi and people find it convenient for them to use it. It is not going to fade away at least if there isn't anything more secure and user-friendly than the current Defi application and services.

The first I know about DeFi, I honestly think it was revolutionary, but I know that we can only do so much with DeFi. Then it became overhyped, and then just like what happened to ICO, scammers use the jargon to prey on naive and fomo investors. I still think it was a great trend, it got its time and now it's over. Only the good DeFi project would still survive, and I think that's a good thing.

TBH buddy, i cant find anything you share helpful to what OP has shared.

We can't have decentralized money without halving decentralized financial products that go with. The current DeFi projects and ideas are not the best even the hacks don't make it look pretty but it has a future and I know the industry will get better with time.

You can't have Decentralized money if there are no financial products to use them on whether its lending or borrowing or doing some other stuff, DeFi makes crypto more interesting.

Right now, defi is overhyped and I think it'll get better with time. Ethereum needs to scale as well, alternative evm chains are just as useless, they pop-up on name of scaling ethereum meanwhile some load and themselves are overloaded and the rampant scams and hacks — I'm yet to feel safe while parking money in any defi protocol.

DeFi's are good ideas but this is not well executed since the common thing we can see exist are those scams. So whatever how good the technology is but if the scamming is rampant due to greedy devs take advantage of the hype then all of it will became nothing since people might avoid if they notice that there's no good things they can get from investing since scamming is always happening just like the ICO's happened before.

DeFi is a mess because it has a model that promises you profit, APYs that are usually good in their White papers.

If you have good basic knowledge about finance, you will realize a hidden fact. They only can give you APYs if the balance between cash inflow and cash outflow, capital in and capital out of their DeFi platform is positive. When the balance is negative, APYs will vanish in the air.

With DeFi, you will have risk of impermanent loss as well.

[DeFi Tutorial] What is Impermanent Loss? (https://bitcointalk.org/index.php?topic=5279577)

The emergence of DeFi projects provides a new space in the crypto ecosystem thereby arousing the enthusiasm of investors to enter crypto. We can see how DeFi is growing in the crypto ecosystem, a lot of new projects keep popping up, but also a lot of projects fail because they are unable to compete and because of some hacks that make a lot of losses.
The presence of DeFi in the crypto ecosystem increases the number of diverse new Protocols that provide a wide range of services, such as decentralized exchanges, lending and lending, yield farming and liquidity. DeFi has the potential to play an important role in global finance in the future.

DeFi can be everything you mentioned. An over hyped mess also a great thing. With DeFi, we get to know the potential of web3. I am sure many of you won't agree with me but in future, DeFi is going to be the first priority of companies to launch their financial application on.

If you aren't aware, DeFi = Decentralized Finance.
And the apps which are run over DeFi are called dApps. Decentralized Applications.

Op welcome to the Bitcoin Forum...

Coming to the point brother it is very strange to me that you are directly linking the DeFi with the so-called defi project and their shit coins, buddy I want to let you know that DeFi is known for its services, availability, and decentralization not by their utility tokens and shit schemes. Be careful while taking it into account, DeFi is in my view one of the best dimensions of the crypto space.

It is noting cover from anyone how helpful defi can be in any sort of situation, let's take an example of simple loan service, here from the bank if you want any sort of small loan as well, you need to do a lot of paper working not you have to provide the statement and blah blah other requirements.

There's still little demand on it but if that demand fades then it's just good as how the ICOs were gone. We have the idea on how these hypes are becoming gone due to the fact that the market always need something new to make the investors keep on being active. While DeFi sounds as WiFi, I don't see any connection or relevance on it but only everyone is required to be connected to the internet for us to access them.

You have the idea on what it is and that's the first thing that you've said.

The issue here lies with the poor projects, not the dApps themselves. These types of applications hold significant value in today's environment, particularly for individuals seeking enhanced privacy compared to traditional web/apps.
Remember that ICO is different from DeFi: ICOs function as token-based fundraising methods, while DeFi is a system built on blockchain and is just one of many systems that can be built using dApps.

Where is the busy place and who are the busy people in this regard? You're just a newbie in cryptocurrency maybe and i want to believe you're here to learn, then it's better you learn to use the write words in applying to any situation you come across, don't create a wrong impression through your carelessness in what you say, there's a way we could appear being polite and eager to learn and others will see that in us.


As this community is, the main objective is on bitcoin discussion, though we have an altcoins discussion board where this could be broadly discussed, but i want to assure you that defi has it own risk weighing than the advantage because decentralized finance is a broad aspect that has many applications and some are using it against others, but a decentralized network of bitcoin is more secured than any of centralized or decentralized finance network.

Defi is not a scam but to be honest, the hype was more than what ICO did back then. ICO was full of scam, we can't deny that but the effort some influencers used for people to think that Defi was the next thing after banks till today haven't convinced, traditional finance is a flop but the Defi hack hasn't proven otherwise, team pulling rugg and scam projects running off with people are not worth what Defi was supposed to be, it was just hype even though there people who still believe in it.

Another challenge I observed we have been fighting is liquidity and I'm wondering if we are going to continue like this, we have so many blockchains, more are coming soon in the new coming bull run and there are more that are still in the testing phase that will come by surprised, it has been a game of competition between developers and the investors are only after the profits running from one projects to another, will defi progress like this with this watch? I doubt this because progress and loyalty are what build a community but investors don't have that thinking, they are only after their profits and not the tech.

The idea is not scam the idea of this technology is really great but the devs or project owner is the one killing this idea because they use this to make their scamming  plans successful. And this is why many investors got upset then think about that this is just the same with ICO's. If there are just DeFi project will step up turn out to became a legit one maybe people assumptions regarding on those rampant scamming may change.

dApps are called so because they run on decentralized blockchains, what we call DeFi is merely a term used to denote finance-related applications on decentralized blockchains, it has no real existence, you could call DeFi a subset in broader ecosystem of dApps.

Defi wouldnt die since its become one of the foundation of altcoins. You may seem it dying but thats just because of the bear scenario. Different protocols have lost or been gone due significant factors like, lack of users, funds and even due to breach of some hackers and exploits of their codes. But there are bigger projects operates on defi and keeps building. Its just one way or another defi would definitely go back again with a bigger purpose I suppose.

Affirmative. DeFi is still an actual thing since it unlocks a lot of use cases for crypto. It's awesome that we have decentralized money, it's even more awesome that there would be decentralized products and services that we can use our decentralized monies to interact and actually get some value out.

As you already mentioned, the hacks and bear market have made it look to be dying but it's still in its early days, so we might see some innovative DeFi products and services that are actually secure for users in the not-so-distant future.

Most DeFi projects are in lending area that is very unsustainable and risky. From DeFi 1.0 to DeFi 2.0, altcoin projects have good growths and attract big capital from investors who want to stake their coins, tokens and earn interests from DeFi platforms.

After two or three years, impermanent losses are worse and who bought those tokens in 2021 bull market, maintained to stake their tokens so far surely are living with fear and small hope to get their initial capital back. Those tokens drop a lot in value from UNI (Uniswap) to CAKE (Pancakeswap) and other smaller DeFi platforms, other DEXs' tokens.

Despite the DeFi market being largely a misnomer because most of it, if not its entirety, is centralized, I am looking forward to its continued development. It's still in its infancy stage and I believe it still has a huge room to grow. For now, many of these so-called DeFi projects have single points of failure.

However, in all fairness, I think the technology has a lot of potential because it seems to go along with Bitcoin's agenda. Centralized finance has a lot of blunders over the years, decades, and centuries. A real DeFi might address the flaws of centralization in finance. Even the fake DeFi that is available right now is addressing some of it.

Almost all are hoping for that and we cant blame some investors and users for having their fear as scams and hacks arent funny when you talk about million in $ that has been stolen by some lousy exploiters of flaws in one's code. I dont know if this is appropriate since they are trying to emptied funds from a natural defi activity for what? Their own greed and funds to support their more heinous activities. There are some white hackers that doing that only for learning and returning funds to the owners but some really doing it for thieving which isnt good for defi's future.

I agree that Impermanent loss was a flawed idea since I experienced it first-hand however, even without impermanent loss in the picture, most of the tokens (DeFi and non-Defi) have all gone that significantly in value due to the bear market.

A lot of the DeFi concepts available today are all experimental and will take time to mature. These projects are building financial products in a decentralized context so a lot of things have gone wrong and could still go wrong.

Yes experimental and very risky. I just hope they could improve the security and priority it first prior to launching cause the actual hacks happened on the codes and some smart ass are able to counter it due to the flaws their able to see and taken advantage off.

Most big defi are being monitored and waiting to be exploit by these guys. So for new projects, I think they should compromise first with the security before doing the liquidity approach and some new ideas they could impart to defi users.