DeFi - decentralized finance

[r32godzilla]

Hello, I just learned something about DeFi, I would like to know your opinion about that. I am talking about MakerDao or Synthetix for example.

It is really 100% safe as it claims? It should be protected by smart-contract, but who knows if it is 100% without a bug? The problem is that you can´t reverse the tranaction when it happens and investors will loose their money. It looks like a good alternative how to leverage or hedge your position.I think that now it is the best time to learn something about it because you can easily grow your portfolio thanks to secured loans (it is not so likely that the Ethereum will fall by more than 50% to endanger your leverage position). Those who do not know anything about it, here is a good example: you can lock for example 1000USD in ETH to the DeFi smart contract and you will get loan worth 500USD (in Dai tokens), you buy more Ethereum and when price goes up, you will need to pay only 500USD to unlock your Ethers.

Also there were some DeFis that didn´t survive for example NuBits. Do you know about others one successful or unsuccessful?

[1715464127]

1715464127

[avikz]

Nothing in this crypto world i 100% safe! Especially those p2p lending platforms who are offering interest to the depositors. Smart contract doesn't really play any role in securing your money!

These kinds of business functions on percentage difference similar to the banks but they are more prone to market risks because they don't have backup from the venture capitals or any similar organizations. So if you are looking to earn some passive income, be very very cautious!

[GreatArkansas]

Decentralized Finance (DeFi) is of now is kinda not yet popular, maybe due to bear market? Don't know. But you are correct that Decentralized Finance (DeFi) is good to explore it and start using it, (use it not only for profits but just like what we do in real life, like loan, using some banks, etc.)
There are only lot of projects now about DeFi, just like whay you mentioned, the MakerDao which is the only one I'm familiar with.

[r32godzilla]

Nothing in this crypto world i 100% safe! Especially those p2p lending platforms who are offering interest to the depositors. Smart contract doesn't really play any role in securing your money!

These kinds of business functions on percentage difference similar to the banks but they are more prone to market risks because they don't have backup from the venture capitals or any similar organizations. So if you are looking to earn some passive income, be very very cautious!

And that is problem, I thought that cryptocurrencies and blockchain technology is said to be trustless protocol and it should be. But maybe the problem is that cryptocurrencies are still pretty young and not tested enough against various bugs or hacks. Maybe after few years we will be able to finally say that cryptocurrencies and smart-contracts are safe. I pray for this future without any intermediary.

[tenakha]

Obviously I am not interested in p2p financial systems like this. But the subject you mentioned at the end is intriguing to me. Is the amount you give them as a collateral is calculated with the value in USD? So if you keep the $1000 ETH in your wallet, will not you earn more? Moreover, there is always a greater chance that such systems are scam. That is why, whatever you do, always consider your safety as the most important factor.

[Lottoshi]

It’s still unclear who Defi’s core users will be, and unclear who will be driving future demands, on the other hand CeFi’s borrowing platform has been growing very quickly because institution has been borrowing Bitcoins in large amounts to avoid exposure to their balance sheet and still being able to profit from Bitcoin

[CjMapope]

Hello, I just learned something about DeFi, I would like to know your opinion about that. I am talking about MakerDao or Synthetix for example.

It is really 100% safe as it claims? It should be protected by smart-contract, but who knows if it is 100% without a bug? The problem is that you can´t reverse the tranaction when it happens and investors will loose their money. It looks like a good alternative how to leverage or hedge your position.I think that now it is the best time to learn something about it because you can easily grow your portfolio thanks to secured loans (it is not so likely that the Ethereum will fall by more than 50% to endanger your leverage position). Those who do not know anything about it, here is a good example: you can safe for example 1000USD in ETH to the DeFi smart contract and you will get loan worth 500USD, you buy more Ethereum and when price goes up, you will need to pay only 500USD to unlock your Ethers.

Also there were some DeFis that didn´t survive for example NuBits. Do you know about others one successful or unsuccessful?

i have to be honest, i just can't trust these services offering lines of credit or loans on your crypto.
i understand they take atleast 100% as collateral, but i always felt like BTC was developed as a direct solution to debt, and that debt+cryptocurrency should not mix
of course thats just my opinion, i have seen a few services now, tho i havent heard of "DeFis" i admit till now (i tried nexo, same thing, but thought it was dumb personally)

[r32godzilla]

Obviously I am not interested in p2p financial systems like this. But the subject you mentioned at the end is intriguing to me. Is the amount you give them as a collateral is calculated with the value in USD? So if you keep the $1000 ETH in your wallet, will not you earn more? Moreover, there is always a greater chance that such systems are scam. That is why, whatever you do, always consider your safety as the most important factor.

You give Ethereum tokens as a collateral - locked in smart contract and for this you will get loan in DAI tokens (USD stable coin). So you can buy more Ethereum tokens with these DAIs. If Ethereum grows, you are in a bigger profit, but if Ethereum falls, the situation is worse for you. 

[tabas]

I've been hearing this lately but it seems that the explanations here made me understand it quickly.

You give Ethereum tokens as a collateral - locked in smart contract and for this you will get loan in DAI tokens (USD stable coin). So you can buy more Ethereum tokens with these DAIs. If Ethereum grows, you are in a bigger profit, but if Ethereum falls, the situation is worse for you. 

If this how its system works, it's almost the same as leveraging in bitmex right?

[r32godzilla]

I've been hearing this lately but it seems that the explanations here made me understand it quickly.

You give Ethereum tokens as a collateral - locked in smart contract and for this you will get loan in DAI tokens (USD stable coin). So you can buy more Ethereum tokens with these DAIs. If Ethereum grows, you are in a bigger profit, but if Ethereum falls, the situation is worse for you. 

If this how its system works, it's almost the same as leveraging in bitmex right?

Yes, pretty similiar, here you lend coins from Bitmex (traders).
This is a decentralized way how to leverage your position. Also there is a way how to hedge your position, good for miners for example, that want to secure their profits.

[knuckey]

Talking about DeFi, then I found the Jarvis Network project. When reading an announcement about it, it looks very interesting and promising, but unfortunately this project has not been launched and reportedly the alpha version will be launched in Q4 this year.

Jarvis Network: delivering decentralized finance to everyone

[DarkDays]

Hello, I just learned something about DeFi, I would like to know your opinion about that. I am talking about MakerDao or Synthetix for example.

It is really 100% safe as it claims? It should be protected by smart-contract, but who knows if it is 100% without a bug? The problem is that you can´t reverse the tranaction when it happens and investors will loose their money. It looks like a good alternative how to leverage or hedge your position.I think that now it is the best time to learn something about it because you can easily grow your portfolio thanks to secured loans (it is not so likely that the Ethereum will fall by more than 50% to endanger your leverage position). Those who do not know anything about it, here is a good example: you can lock for example 1000USD in ETH to the DeFi smart contract and you will get loan worth 500USD (in Dai tokens), you buy more Ethereum and when price goes up, you will need to pay only 500USD to unlock your Ethers.

Also there were some DeFis that didn´t survive for example NuBits. Do you know about others one successful or unsuccessful?

You never know 100% if there isn't any bugs in a system unless you actually do your own audit. However, to do this, you will need to be able to understand how the smart contract operates (including all of the functions it can call to in other smart contracts).

Therefore, unless you understand all the programming languages used by the smart contracts, you'll need to rely on third party audits.

With that said, exploits have been discovered in DeFi projects in the past, including the infamous DAO hack that occurred a few years ago. Therefore, although it's less risky than using centralized platforms, some small risk will always exist.

[magneto]

Hello, I just learned something about DeFi, I would like to know your opinion about that. I am talking about MakerDao or Synthetix for example.

It is really 100% safe as it claims? It should be protected by smart-contract, but who knows if it is 100% without a bug? The problem is that you can´t reverse the tranaction when it happens and investors will loose their money. It looks like a good alternative how to leverage or hedge your position.I think that now it is the best time to learn something about it because you can easily grow your portfolio thanks to secured loans (it is not so likely that the Ethereum will fall by more than 50% to endanger your leverage position). Those who do not know anything about it, here is a good example: you can lock for example 1000USD in ETH to the DeFi smart contract and you will get loan worth 500USD (in Dai tokens), you buy more Ethereum and when price goes up, you will need to pay only 500USD to unlock your Ethers.

Also there were some DeFis that didn´t survive for example NuBits. Do you know about others one successful or unsuccessful?

You're absolutely correct. There is still a degree of trust involved in these protocols despite their name as DeFi.

I've personally seen other stablecoins that are supposedly decentralised completely fail to keep their value. Nubits is one of the prime examples, but also BitUSD, you can see huge fluctuations in value from time to time due to the illiquid nature of the markets.

Decentralised finance is kind of a buzzword being thrown around right now as well. So if you see any project that is advertising themselves as such, just think twice before buying into the hype.

[tabas]

I've been hearing this lately but it seems that the explanations here made me understand it quickly.

You give Ethereum tokens as a collateral - locked in smart contract and for this you will get loan in DAI tokens (USD stable coin). So you can buy more Ethereum tokens with these DAIs. If Ethereum grows, you are in a bigger profit, but if Ethereum falls, the situation is worse for you. 

If this how its system works, it's almost the same as leveraging in bitmex right?

Yes, pretty similiar, here you lend coins from Bitmex (traders).
This is a decentralized way how to leverage your position. Also there is a way how to hedge your position, good for miners for example, that want to secure their profits.

Platforms like this are secured from any intruder? since it's decentralized, we can't say what are the hackers thinking since there's a huge sum of money deposited.
We like decentralized platforms like this because it can't be manipulated by the owners as they do with centralized but, the question and concern still lies with the security.

[btc_angela]

Yes, I have heard about this DeFi but never had a chance to understand it fully.

Anyways, regarding OP's question, no one is safe here in this ecosystem. Hackers, scammers and even project themselves failed in an instant. So this whole new Defi thingy would be the next thing after IEO but just like the rest of it's predecessors chances are it might fail because there is a huge risk involved.

[r32godzilla]

I pray for the world where I don´t have to trust the other side with I do the business. Blockchain ans smart-contracts made a real revolution in it, but we are still far away from trust-less protocol, right?
And what about other blockchains, am I understand correctly that Cardano´s network will be more strong against hackers due to its unique coding?

[Hypnosis00]

I pray for the world where I don´t have to trust the other side with I do the business. Blockchain ans smart-contracts made a real revolution in it, but we are still far away from trust-less protocol, right?
And what about other blockchains, am I understand correctly that Cardano´s network will be more strong against hackers due to its unique coding?

Yes, we are too far from happening and quite to say that people are still confident for not using online loans, or whatever it is in terms of financial scalability and that because of trust. I know some of us here just curious for this DeFi but would like to think these things
https://www.letslearnfinance.com/advantages-and-disadvantages-of-decentralization.html

[tuchenvi]

first of all before entering defi market, all we need to understand what defi concept exactly is, and since we will understand that it's not a "new ICO" hype, it will be much easier to distinguish scams from great opportunity. as for me, i strongly believe in defi exchanges, so I analyze and invest mostly in these projects

[DEMER]

first of all before entering defi market, all we need to understand what defi concept exactly is, and since we will understand that it's not a "new ICO" hype, it will be much easier to distinguish scams from great opportunity. as for me, i strongly believe in defi exchanges, so I analyze and invest mostly in these projects

btw there's a lot of cool defi exchanges announced - i just read about xsigma project, cool financial model, and they promise simple functionality and transparent technical base. so i'm watching them)

[suparigach]

I like DeFi - decentralized finance. DeFi - decentralized finance is very good concept. DeFi - provides decentralized finance p2p service. And provides some security. DeFi - decentralized finance has given good profit to their holders. Decentralized finance provides loans to the holders which is very useful to the holders.