Are DeFi projects trustless?

[bigcash2011]

DeFis are mostly still in their early stages we can expect to see better and more professional platforms in next 2-3 years.
Till then developers need to come up with better interface. Fool proof security, better products and services. More options to make money safely.
At the moment risks like scams, smart contract bugs, fake stats or fake promises are damaging the sector so the good projects should make sure that they come up with a better paltform.

[judaspriest]

I think those are Yam, Hakka. After ICO the price go down so much. I think Defi just a short trend.

Why do you say that DeFi is just a short trend? do you have a more complete explanation about this DeFi thing? because most people today already believe in the DeFi trend and will continue to do so for the next year.

Defi has been around since 2017, and it's still not making a good trend,
in my opinion Defi is just a temporary trend, this is like the trend of exchange coins, OKB , BNB, and Huobi Token have experienced high increases,
and reached new ATH last year, and now all back to a low price, so will a Defi coin or token be like that

[imstillthebest]

I think those are Yam, Hakka. After ICO the price go down so much. I think Defi just a short trend.

Why do you say that DeFi is just a short trend? do you have a more complete explanation about this DeFi thing? because most people today already believe in the DeFi trend and will continue to do so for the next year.

Defi has been around since 2017, and it's still not making a good trend,
in my opinion Defi is just a temporary trend, this is like the trend of exchange coins, OKB , BNB, and Huobi Token have experienced high increases,
and reached new ATH last year, and now all back to a low price, so will a Defi coin or token be like that

Really mate ? I didn't knew that defi already are created before but what I thought is defi are created starting by this year . On 2017 the only thing that is on trend are ico but there could be defi and it's not popular because only  bad projects are created that time .

On this year ,there are no trends so defi devs try again and created an exceptional projects and it was a succesor . exchange owned coins that you said aren't just a trend but they are still there being used .

[optimisticcm]

The only way to get a nearly perfect crypto based financial ecosystem is to come up.with a hybrid model, a platform that is composed of bothe centralized and decentralized components where and when required to suit the userbase and development of market to next level.

[mariah.sadio]

The same situaiton here as with ICO. Tons of scams/dead projects without feature and only several of them are reliable

[ScamViruS]

The impact will be hard. Many people just blindly buying DeFi without knowing the risk or they just want to ignore that. Everything related to DeFi is not valuable and it is not possible to be successful with the same concept when there are plenty of them. There are many new projects came but they have similar concepts and not offering nothing new.

Some people are already scamming using this hype of DeFi. This is a normal thing for scammers, when there is a hype in the market, they use it to scam. Those of us who have seen ICO hype have seen how people run after hype and invest their money in scam projects.

Yet something like that can be expected, because good projects always come but because of some bad intentions people, even good projects do not succeed.

[Cornia]

Ratimov had a topic on this and if you haven't seen it yet, visit https://bitcointalk.org/index.php?topic=5275538.

You can read the first and second comment of this topic then you will find the answer of your question.
In my opinion a few of DeFi projects you can trust but most of them are scam.

[Pamadar]

DeFis are mostly still in their early stages we can expect to see better and more professional platforms in next 2-3 years.
Till then developers need to come up with better interface. Fool proof security, better products and services. More options to make money safely.

Developers needs to convince more investors that the project is not just a pumped and dumped business, that they really have something to offer inside the business sectors.

At the moment risks like scams, smart contract bugs, fake stats or fake promises are damaging the sector so the good projects should make sure that they come up with a better paltform.

High risk indeed, more and more scammers are inside this platform and they are damaging the system, if you do plan to invest make sure to go deeper before placing your entry.

[tvplus006]

The DeFi phenomenon is a very cool innovation in the world of cryptocurrency and financial systems in general! However, many scam projects and lack of regulation can ruin this system... That's why they say about a short-term trend and a hype, like ICO 2017...

DeFi appeared much earlier than we imagine. Take for example the same Link that has been working since 2017. In 2017, we considered it an ordinary ICO, by the way, I took part in it then. And only in the Wake of the hype around DeFi, we began to look at those old projects in a new way. So, when the hype around DeFi ends, there will be really high-quality projects on the market that will continue their development.

[ameliana]

Thanks for a very meaningful post, I realize there are a lot of people who don't understand Defi but they still invest a lot of money. After encountering many scam projects, they complained to their fate and blamed the market for not being fair to them. This is an article to help new investors not make the same mistakes as those greedy.
Recently, I also see many projects that are not considered Defi but they still stick with Defi label to attract more capital, what do you think about this issue?

I'm not going to talk much about the DEFI project right now, I've heard some of them end up being scammed like YAM, sushi, YFFIi and many more that I don't know yet. the DEFI project is still new and it worries me for new investors who don't understand what DEFI is. Plus at this time more and more new DEFI projects have sprung up, especially those that mimic or use the name Y (Yearn) or Y Series.

[SquallLeonhart]

You need to study the whitepaper and the code very careful to make sure they are really 100% trustless, normally most of them claim to be like that but we do not know how much they have control over the coin itself. For example, can they do a rollback? Are they really still coding it and making changes?

When a project makes a better change to a coin and make it better, that is both good and bad because it is good since the new addition made it better but also bad because it means team still can change stuff on it meaning maybe one day they will do something bad and make it worse? That is why I am not entirely sure if we should be focusing on defi projects that gets better, I think the ones that started good and stayed like that without any change is a better option.

[poodle63]

Well that's a bad news. I honestly dont know that they have the "admin keys" and I thought the decentralized finance comes with trustless system in bundle but turns out it kinda different. If an ICO that reveals its team could turns out to be a scam I guess defi projects which have "admin keys" is not far off from that and we here are talking about money that could make people do some stupid thing. But, many people out there seems to stay uninformed and don't know this information hopefully its not gonna be ICO 2.0

[Fakhrulenclix]

Yes, Defi project is trustless, Yeah many are good but most of them are shit. Defi also is a den of deception, many people make Defi project just to scam people, Hype is a great moment to take advantage of the situation. So better you skip the defi project and choose the really good one.

[Princejebs]

DeFi is not just trust less, its a decentralized ecosystem and open source govern by smart contracts. That was the plan and intention, no central authority, belongs to nobody.
This transparency, inclusiveness and autonomy has proved DeFi to be self relying with independent of any other party. It has also give rise to borrowing, lending, decentralized trading (DEX) and peer to peer predictions so easy.
Due to it trust less systems, it gain crypto attention with a total value of 11 billion $USD worth token locked on DeFi.

For every trend, there are some projects that tend to make quick riches without use-case, that's why some investors are still skeptical about the whole hype.
One of the examples is YAM, the developer dump token on investors moving closely 14m worth of Ether from liquidity pool but later apologies after the damage has been done. The trust is not longer there.
Its too early to conclude on the trust part.

[TopT3ns]

The DeFi phenomenon is a very cool innovation in the world of cryptocurrency and financial systems in general! However, many scam projects and lack of regulation can ruin this system... That's why they say about a short-term trend and a hype, like ICO 2017...

DeFi appeared much earlier than we imagine. Take for example the same Link that has been working since 2017. In 2017, we considered it an ordinary ICO, by the way, I took part in it then. And only in the Wake of the hype around DeFi, we began to look at those old projects in a new way. So, when the hype around DeFi ends, there will be really high-quality projects on the market that will continue their development.

well like other hype which is only good at the beginning of the project but when it is too long and many new DeFi projects are created it will make them see the potential to scam many more people and eventually make the cryptocurrency name bad again and destroy the cryptocurrency.

[Distinctin]

Either to say Decentralize or Centralize, we can't just all find it safe and always can be trusted, not unless if we are choosing those projects that have been existed quite long with good market performance. However, it was unlikely to see how these Defi projects sprung around and I know that not all of them are fueled by the interest of the people seeing them it surge but it is just because it was drag by the hype.

[NavI_027]

As if each member of the core team got different perspectives or cannot be influenced by one another . It's a little bit unbelievable on that part. Of course they naturally have unity (that's why they are called a team) so if they will be given a chance to manipulate the code, especially when the project is on its hype, and the greed kicks in then I'm sure they pull it off.

But well, Defis are not different in the rest of investment schemes thus we can't look at it as the only untrustworthy here lol. All I can say is "Pick your own poison". Scammers are inevitable so be wiser.

[btc-facebook]

For me DeFi is just another way how cryptocurrency can be accepted by people, especially people who don't understand cryptocurrency,
before DeFi exploded the concept of Decentralization already existed and many projects were using that concept, it's just that luck was in favor of new projects.
and we as capital owners must be wise when deciding to invest in the DeFi project, make sure not to follow the HYPE that is happening, and the decisions made are purely from our own research.

[Lantind]

People who put in thousands of dollars into these centralized smart contracts that can exit scam whenever they want are insane. Greed makes us do stupid things sometimes.

If greed can make us do stupid things, then from now on get rid of that greed, because obviously that trait is not good for anyone, and those who put thousands of dollars in smart contracts will definitely have some judgment before they do.

[lienfaye]

For me DeFi is just another way how cryptocurrency can be accepted by people, especially people who don't understand cryptocurrency,
before DeFi exploded the concept of Decentralization already existed and many projects were using that concept, it's just that luck was in favor of new projects.
and we as capital owners must be wise when deciding to invest in the DeFi project, make sure not to follow the HYPE that is happening, and the decisions made are purely from our own research.

The image of defi is getting bad due to scam projects riding on the popularity and because of the hype. So even its not the main purpose why defi were launch (since there's more to look into it) people are seeing these projects as a way to earn quick. It is common for investors to be attracted in projects that likely to give profit in short term thats why many investors are just going with the flow and not thinking of the risk.