It appears that yield farming APY is largely derived from new buyers entering a pool with money inorder to sustain payments to themselves and other pool liquidity providers.
The APY is drawn from the added capital and used to pay investors.
External revenue sources are marginal and insignificant compared to xxx% APY which is impossible to sustain on stablecoin network fees which are below 0.1% per trade.
This is the definition of ponzi:
https://coinmarketcap.com/alexandria/article/what-is-yield-farminghttps://www.investopedia.com/terms/p/ponzischeme.asp
"A Ponzi scheme is a fraudulent investing scam which generates returns for earlier investors with money taken from later investors."I would advice against waves joining the DeFi mania based on its present form as this is not a healthy or viable business method.
You will gain short term user adoption and parabolic profit but cause long term damage to waves when the ponzi disintegrates.
My main concern is this toxic asset promising xxx% APY:
https://medium.com/swop-fi/where-is-swop-fi-pools-high-apy-coming-from-4fedca21cd86But Bernie Madoff used ~10% APY for his long running ponzi and the stablecoins on waves dex are in this range so they must still be audited to confirm revenue source such as from trading fees.
Masternodes did this in 2018, I invested in alot of masternodes with a few thousand dollars and every single one of them was -99% 1 year later.
https://masternodes.online/Masternodes was also a Ponzi because new investors were used to pay xxx% APY and the system collapsed when investors stopped providing liquidity.
Any scheme that focuses on hype and flashiness to this level, where the main objective is promoting returns, is in the ponzi risk category.
DeFi could probably evolve to enable real user loans without liquidity risk but this APY is then similar to normal lending platforms that already existed for years. These loans must be locked on user account if there is no KYC or credit requirement, and the money can only be used to reinvest in specific cryptos.
I would definately borrow $20 000 with $200 monthly repayment to buy waves, it is 12% APY, Price would go into triple digit if this was enabled, it is realistic form of DeFi, why use ponzi when there is real possibilities with DeFi.
Liquidations is a source of big problems I discovered from using high margin leverageon Binance. To say that it is fraudulent is an understatement, I have never seen this dragnet level of investor fraud being perpetrated daily on Binance where big leveraged positions are wiped either by a neural network liquidation bot or chinese sweatshop workers. And a few seconds after, -10-20% flash crash, price goes back to normal.
As long as DeFi is as profitable in its current form, expect no real evolution.
But new investors deserve to understand that DeFi right now = ponzi
Lots of bs technichality and cool sounding names, still the same centuries old con artistry.
I always said that BTC core insider community came from criminal origins with silk road, they simply evolved from thuggery into white collar crime.
In 2021, investors are too smart to be fooled, because it is a simple google search. But it can be tricky to spot at first glance with the new platform "DeFi" to perpetrate the scam. And lots of hype to obfuscate critical analysis.
Maybe if I made $100k from waves rally, I would not analyze this market or care, but the King who does not pay his knights, will not be king for long.
If someone lost large money on Binance and think it was from manipulated market, my advice is to do something about it, you need to find out who is working at Binance and confront them. Forget legal recourse although this will come in time and bring down Binance.
I did not personally lose anything on this leverage fraud but I see that people lose alot every day, so if you are one of them, you need to take action because you are victim of crime, it is not normal market behaviour.
I moved away from waves to TurtleNetwork.
It did not pump yet because there is no Ponzi activity on this network.
Developers are European and there does not appear to be any criminal community from the old school BTC gangbangers in TN, but who knows maybe it is even bigger scam.
If they want to mess with TurtleNetwork, they must first buy it like everyone else. I belive that crypto is a military target for sabotage to protect centralized status quo. I think this criminal operations is partially false flags perpetrated by states to sabotage crypto but it is well known that NSA is already intercepting transatlantic fiberlanes and can use your computer similar to remote desktop, this includes all your seed passwords and every single click and website you view. You may aswell consider this computer a loan from CIA unless you are top 0.001% of hacker community with technical knowledge to hide yourself.
So my point is that maybe they don't even need false flags in crypto, they are so omnipotent anyway. Full Spectrum Dominance, land, sea, air, space, communications, socio-economic.
I don't think waves devs did this ponzi trick on purpose. Waves is not native DeFi, it is wrapped.
It is normal for them to jump the bandwagon, of course technical experts dont understand history of fraud economics, it is normal.
My family is Jewish Ashkenazi economic investment bank founders, but know nothing about technologic intricacies of blockchain.
Who can be expert at everything?
https://www.eurazeo.com/en/company/shareholding/shareholding/There is no need to panic if you are waves investor, this ponzi was captured very early and did not have time to cause damage.
Maybe it can trigger w4 to $2.43 in combination with vaccines, spring time and lockdown ending.
But today I see that government upgraded to N95 mask requirement and corona increases alot, so it is not time yet, maybe $42.7 first.
Waves is one of the best cryptos with best foundations to create wealth, so even if it goes down it will go to $3000 after 5 years if everything goes to plan. Biggest risk if human corruption, tech is strong.
