‘Weird DeFi’ Gets Weirder | Crypto Craft

  • ‘Weird DeFi’ Gets Weirder

    From coindesk.com

    Decentralized finance (DeFi) has always been strange, but it’s becoming mind-bending. It’s following the course the internet took as a publishing platform. First, it recreated things from the analog world. Then it invented new things. Then new things were built on top of the new things. Finally, the internet colonized the analog world. We’re at phase 3 in DeFi: new things built on new things. “It’s a snake-eating-its-own-tail element to DeFi right now,” Tom Schmidt, a general partner at Dragonfly Capital, said in a phone call. The pre-blockchain internet did this in a lot of ways, but drop-shippers are a ... (full story)

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Goat
Jun 17, 2021 6:47pm
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Bro it is a ponzi.
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Trader#EA6D
Jun 17, 2021 4:54pm
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Articles like this make the majority of defi sound like a circular ponzi:

” Nevertheless, the design scratches much the same itch as MakerDAO but without the slashing risk. (If the value of a borrower’s collateral drops too far MakerDAO sells it and the borrower gets a painful liquidation penalty, which forces them to keep an eye on their positions.) So one of MakerDAO’s chief use cases is allowing users to make other bets without selling assets they are long.

Similarly on Alchemix, because many users are long ETH, they are very likely to like the idea of borrowing synthetic ETH to make other trades while hoping the value of their ETH continues growing”

You’ve invented nonthing. This is called leverage.
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