Define the (scam) DeFi.

[SquirrelJulietGarden]

I make the topic live again after a few months.

Many DeFi tokens are available on the market and newbies have to be careful with it. Many of DeFi projects are bad or scam projects.

304 DeFis: coingecko
109 DeFis: defilpulse

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[SquirrelJulietGarden]

DeFi scams [history]. 14 scam DeFi are reported but with 322 DeFi listed on coingecko and many scam DeFi are circulating on the market.

[RILWAN]

Defi is the latest craze in the cryptocurrency market so one needs to be careful to avoid being scammed by people creating tokens that become worthless in the future.

[SquirrelJulietGarden]

2 years and now DeFi projects are in liquidations from retail to institutional investors and even DeFi operators. Terra, Celsius, 3 Arrows Capital are early tips of bigger icebergs.

We will see many DeFi platforms end with bankruptcy, liquidation, whatsoever but endings for DeFi 2.0 is very bad. High yields and base on high leverages. When a first domino falls, a snowball effect and death spiral will continue.

[zasad@]

2 years and now DeFi projects are in liquidations from retail to institutional investors and even DeFi operators. Terra, Celsius, 3 Arrows Capital are early tips of bigger icebergs.

We will see many DeFi platforms end with bankruptcy, liquidation, whatsoever but endings for DeFi 2.0 is very bad. High yields and base on high leverages. When a first domino falls, a snowball effect and death spiral will continue.

DeFi projects are not only finance and staking. Any project that promises to earn 20% per annum in stablecoins from staking as a Terra project can turn out to be a scam. While the ecosystem is growing, everything is fine, and then the bubble bursts or manipulators help it burst. Use decentralized projects for trade and bridges: Uniswap, 1inch, etc.

[SquirrelJulietGarden]

DeFi projects are not only finance and staking. Any project that promises to earn 20% per annum in stablecoins from staking as a Terra project can turn out to be a scam.

I know, DeFi is only a term and a tool to be used by scammers. There are scam projects on behalf of DeFi and there are good DeFi projects.

While the ecosystem is growing, everything is fine, and then the bubble bursts or manipulators help it burst. Use decentralized projects for trade and bridges: Uniswap, 1inch, etc.

Thank you for your recommendation. I know about Uniswap, Pancakeswap and 1inch.

Generally the finance behind DeFi is not sustainable and it is not only about 20% APR or lower. Nothing can grow forever without corrections and hiccups. There is fear and greed and if a flow of new users is decreased, capital inflow will fall and it is hard for DeFi projects to maintain their attractive interest.

It is not yet talking about bank-run. When fear is everywhere, nobody want to stake to get even 20% APR but the value of token itself will be divided by 5, 10 or more after one year.

[zasad@]

DeFi projects are not only finance and staking. Any project that promises to earn 20% per annum in stablecoins from staking as a Terra project can turn out to be a scam.

I know, DeFi is only a term and a tool to be used by scammers. There are scam projects on behalf of DeFi and there are good DeFi projects.

While the ecosystem is growing, everything is fine, and then the bubble bursts or manipulators help it burst. Use decentralized projects for trade and bridges: Uniswap, 1inch, etc.

Thank you for your recommendation. I know about Uniswap, Pancakeswap and 1inch.

Generally the finance behind DeFi is not sustainable and it is not only about 20% APR or lower. Nothing can grow forever without corrections and hiccups. There is fear and greed and if a flow of new users is decreased, capital inflow will fall and it is hard for DeFi projects to maintain their attractive interest.

It is not yet talking about bank-run. When fear is everywhere, nobody want to stake to get even 20% APR but the value of token itself will be divided by 5, 10 or more after one year.

If you use Uniswap, Pancakeswap and 1inch then check out these services, they are very useful for decentralized trading.
Cross-chain Bridge Aggregators
https://bitcointalk.org/index.php?topic=5389259
For example, if I have 100,000 dollars, then I will not participate in staking. Maximum profit 20%, maximum loss 100% when smart contract is hacked. This is the wrong ratio of risk and reward.