Exploits and flash loans are just the beginning, defi economy Is less private

[Charles-Tim]

I think this is a good news to read, I thought DeFi was only full of scam before, but this news also shows how DeFi is less private than people think. I do read about DeFi scam almost weekly, and yet people still want to take their own shares and invest to get active income which can possibly lead to scam. In my opinion, there is nothing so different between ICO and DeFi in terms of scam, and DeFi has less privacy. To prove this, it is clear in the quote below

The Lidless Eye and Onchain Transactions
https://news.bitcoin.com/exploits-and-flash-loans-are-just-the-beginning-defi-economy-less-private-than-people-think/
Moreover, a few days beforehand, the Twitter handle @n2ckchong (Nick C) shared an interesting perspective of how much of the defi world can be seen onchain.

“What’s beautiful (and kind of scary) about defi is that we can see everything that happens on-chain and connect addresses to identities and firms,” Nick C tweeted on Wednesday. In the Twitter thread, Nick C shows a breakdown of ether addresses stemming from Three Arrows Capital (3AC), Jump Trading, and Polychain Capital. The first tweet alleges that 3AC is one of “the biggest Compound suppliers” and also notes 3AC has $100M in WBTC, $50M in ETH, and $6M in the stablecoin DAI. “3AC is also supplying 275 YFI and $13M in LINK to Aave and is farming SUSHI with 1.5M recently-acquired SUSHI,” Nick C said. “3AC [also] acquired 351k LINK during [the] recent dip,” he added. In another tweet, Nick C breaks down some ostensible estimates from Polychain Capital’s defi action.

“Polychain Capital has been the biggest YFI buyer over the past few weeks,” he further wrote. “They’ve acquired 570 YFI (~2% total supply) over the past five weeks at an estimated cost basis of $12~14k. They also own 48,000 ETH and 1,315 MKR on this address,” Nick C detailed. The Twitter thread also gives a breakdown of Jump Trading’s defi action as well as Nick C notes that Jump Trading is “a massive prop trading firm based in Chicago.” The researcher continued by adding:

[Jump Trading] are big investors in Ethereum tokens as well.

Nick C’s insights earned him a great number of Twitter followers after he shared his thoughts about the three firms and the defi action. After publishing the thread, Nick C got a few thousand followers and he said he “would continue posting high-signal content when I have the time.”

The perspective Nick C shared on Wednesday shows how the defi economy displays highly visible content onchain, and it’s a lot less private than most people think.

[OcTradism]

In my opinion, there is nothing so different between ICO and DeFi in terms of scam, and DeFi has less privacy. To prove this, it is clear in the quote below

Scammers use ICO, DeFi and Ethereum smart contracts to scam investors but you are not correct to compare ICO and DeFi.

In privacy, you won't have privacy if you join centralized pools and make your transactions without Tor or VPS.
In security, you won't have security if your transaction is broadcasted with smart contracts from scam companies.

DeFi is as same as staking. Staking (with stake masternode coin) or farming, yielding (with DeFi) and get many coins or tokens every day but in the same time price is falling and falling down. Total coins or tokens in your wallet increase 50% and the price of coin or token falls down 50% (even more).

[pooya87]

they can keep on changing the name from ICO to IEO to STO to DEFI and more until the end of time but it will never change the fact that they are creating a completely useless virtual thing on another centralized and terrible platform and selling that garbage to people to raise funds and fill their pockets. that is the scam part in my eyes.

[hugeblack]

ICO, IEO and other different financing methods are the names through which the owner of the horrific tries to obtain the money for customer service.
Therefore, if a method does not succeed in reducing the Supply and incrase and obtaining 2 strange markets, 1 human/service device it will cause great problems, and it will happen and continuity.

it is a new level, but it is more efficient than fraud and a lot of fraudsters appear in it, and it is easy to create a currency with it and thus all the difficulties become related to the computer

[hatshepsut93]

DeFi has always been pure hype, no way in hell any serious person would actually use it instead of traditional finance - there's no regulations, no legal protections, any bugs could lead to catastrophic losses and no one will be held responsible, there's no insurance, all these platforms are not well-tested and come with a lot of flaws, of which privacy might be one of the smaller problems.

[Keith Sweatz]

DeFi has always been pure hype, no way in hell any serious person would actually use it instead of traditional finance - there's no regulations, no legal protections, any bugs could lead to catastrophic losses and no one will be held responsible, there's no insurance, all these platforms are not well-tested and come with a lot of flaws, of which privacy might be one of the smaller problems.

Bitcoin has had two inflation bugs. Print as many coins as you wish. 


DAI has been battle tested and has proven to hold its peg in huge market down turns. If you want a stable coin that CANT BE FROZEN you go with DAI.