Is DeFi an aging, over-hyped mess or a great thing?

[nelson4lov]

What do you think, are we looking at a passing fad, something that gets "re-branded or re-invented" after the hacks settle down, and/or is DeFi currently on a path to keep getting stronger?

Defi wouldnt die since its become one of the foundation of altcoins. You may seem it dying but thats just because of the bear scenario. Different protocols have lost or been gone due significant factors like, lack of users, funds and even due to breach of some hackers and exploits of their codes. But there are bigger projects operates on defi and keeps building. Its just one way or another defi would definitely go back again with a bigger purpose I suppose.

Affirmative. DeFi is still an actual thing since it unlocks a lot of use cases for crypto. It's awesome that we have decentralized money, it's even more awesome that there would be decentralized products and services that we can use our decentralized monies to interact and actually get some value out.

As you already mentioned, the hacks and bear market have made it look to be dying but it's still in its early days, so we might see some innovative DeFi products and services that are actually secure for users in the not-so-distant future.

[dzungmobile]

Affirmative. DeFi is still an actual thing since it unlocks a lot of use cases for crypto. It's awesome that we have decentralized money, it's even more awesome that there would be decentralized products and services that we can use our decentralized monies to interact and actually get some value out.

Most DeFi projects are in lending area that is very unsustainable and risky. From DeFi 1.0 to DeFi 2.0, altcoin projects have good growths and attract big capital from investors who want to stake their coins, tokens and earn interests from DeFi platforms.

After two or three years, impermanent losses are worse and who bought those tokens in 2021 bull market, maintained to stake their tokens so far surely are living with fear and small hope to get their initial capital back. Those tokens drop a lot in value from UNI (Uniswap) to CAKE (Pancakeswap) and other smaller DeFi platforms, other DEXs' tokens.

[Darker45]

Despite the DeFi market being largely a misnomer because most of it, if not its entirety, is centralized, I am looking forward to its continued development. It's still in its infancy stage and I believe it still has a huge room to grow. For now, many of these so-called DeFi projects have single points of failure.

However, in all fairness, I think the technology has a lot of potential because it seems to go along with Bitcoin's agenda. Centralized finance has a lot of blunders over the years, decades, and centuries. A real DeFi might address the flaws of centralization in finance. Even the fake DeFi that is available right now is addressing some of it.

[cryptoaddictchie]

As you already mentioned, the hacks and bear market have made it look to be dying but it's still in its early days, so we might see some innovative DeFi products and services that are actually secure for users in the not-so-distant future.

Almost all are hoping for that and we cant blame some investors and users for having their fear as scams and hacks arent funny when you talk about million in $ that has been stolen by some lousy exploiters of flaws in one's code. I dont know if this is appropriate since they are trying to emptied funds from a natural defi activity for what? Their own greed and funds to support their more heinous activities. There are some white hackers that doing that only for learning and returning funds to the owners but some really doing it for thieving which isnt good for defi's future.

[nelson4lov]

~Snipped

Most DeFi projects are in lending area that is very unsustainable and risky. From DeFi 1.0 to DeFi 2.0, altcoin projects have good growths and attract big capital from investors who want to stake their coins, tokens and earn interests from DeFi platforms.

After two or three years, impermanent losses are worse and who bought those tokens in 2021 bull market, maintained to stake their tokens so far surely are living with fear and small hope to get their initial capital back. Those tokens drop a lot in value from UNI (Uniswap) to CAKE (Pancakeswap) and other smaller DeFi platforms, other DEXs' tokens.

I agree that Impermanent loss was a flawed idea since I experienced it first-hand however, even without impermanent loss in the picture, most of the tokens (DeFi and non-Defi) have all gone that significantly in value due to the bear market.

A lot of the DeFi concepts available today are all experimental and will take time to mature. These projects are building financial products in a decentralized context so a lot of things have gone wrong and could still go wrong.

[cryptoaddictchie]

A lot of the DeFi concepts available today are all experimental and will take time to mature. These projects are building financial products in a decentralized context so a lot of things have gone wrong and could still go wrong.

Yes experimental and very risky. I just hope they could improve the security and priority it first prior to launching cause the actual hacks happened on the codes and some smart ass are able to counter it due to the flaws their able to see and taken advantage off.

Most big defi are being monitored and waiting to be exploit by these guys. So for new projects, I think they should compromise first with the security before doing the liquidity approach and some new ideas they could impart to defi users.