Performance of the YFI token
2 min video — maybe the Decentralised Finance sector — DeFi is more centralised than you realise.
The Decentralised Finance (DeFi) sector has evolved to offer a range of financial services such as lending, borrowing, insurance, payments and derivatives. While some of the firms involved have been preaching and practicing DeFi for years such as Maker DAO — established in 2014- the DeFi really took off this summer.
With tokens like YFI rising by 6.300% in six weeks it is easy to see why DeFi sector as sucked in literally billions -YFI rose in value from $6 to $38,000
‘yield farming’ (which has been described at the rocket fuel of DeFi as it provides the collateral for many of the DeFi products available) — to in effect just lend $ via a stablecoin “looked almost Too Good To BE True” . How many times have I heard that expression in nearly 40 years of studying investments?
However, while the founder of Yearn Finance has gone out of his way to try and introduce governance and controls others have been less DeCentralised as seen by ‘The Chef at Sushiswap’ who took $14million of ETH tokens, therefore must have had a way to Centrally control/get access to others money, fortunately the Chef could not stomach the pangs of guilt and has subsequently handed back the $14million….
DeFi has experienced a real roller coaster of fortunes in the last couple of months.
To survive and thrive it will need to ensure it truly is Decentralised to avoid money being able to be siphoned off/ stolen i.e. have stronger self-regulation before regulators step in to protect less sophisticated investors from another Chef cooking the books….
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#Blockchain #ETN #YFI #Ethereum #Sushiswap #Stablecoins #Regulation #Crypto #Investing