I finally looked into this defi craze to see what the heck is so special. So apparently some fatbody neckbeards came up with a scam. And would you believe it, stupid poor people are pouring their money into it. This is how it works:
Smart contracts on ETH are enabling "decentralized" exchanges to airdrop new coins to people that loan the exchange real coins. So people are being offered between 50% APY to 1000% APY to lock their ETH and other tokens into smart contracts.
I actually fell for this trap back with bitfunder i think it was. But on that scam I was getting 150% apy. I have come to realize that any return over about 20% interest is actually a scam and unsustainable.
If you ever see anyone offer APY over 50% you need to resist the urge to listen. Walk away immediately. It is 99.9999% a scam.
These poor people are going to be buying ETH at $400 hoping to get 300% APY. Then as ETH fluctuates in price, they will baghold to the bottom. Not to mention it takes like 3-4 ETH transactions to loan out your coins, that's what's driving the fees so high. I imagine this will come to BSV eventually. Will have to watch out for this stuff.
Luckily ETH is not at an all time high. Defi might survive until the next bull market. It will be so fun watching it fail and ruin people.
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LOL after 2 weeks the APY goes from 100% down to 2%. And all these scrubs are stuck with their coins and $15 transaction fees to unlock their coins. It takes like 2-4 transactions to even lock up your coins to start earning the ponzi tokens. Another time for ETH to shine is interrupted by it's garbage base layer. Maybe this would work on a chain like BSV where it's possible to do millions of transactions per block.
lol!! that was funny. Yfi 50k soon, few understand...
Youtrade1
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Does it hurt?
Youtrade1
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You smell that Wrok
Youtrade1
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How are you holding up?
CoinOracle
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@Youtrade1, YFI is still doing great relative to the entire market IMO, lot's of support and bullish movements. Unless you are blind, almost every* alt has taken a big dump and corrected. The interesting thing is YFI is holding it's value pretty well, and recovering bullishly. Coins are organic; they aren't rocketships, more like a plant that does lose some leaves and branches as it grows. Until you appreciate that, the world is black and white it seems to you, and all crypto is a Ponzi pump and dump with no value to you. Good luck, I know 50k is coming soon. :-)
ThumbSkin
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@CoinOracle, looking at this comment months later makes me laugh but also kinda sad.. This poor guy just had no idea and was so incredibly wrong its painful to read thru
PolarHusk
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ThanksForSharing
Youtrade1
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Anything to do with usury is ponzi
Youtrade1
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Lol Wrok
Hop7777
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@Youtrade1, he’s saving the world, one rekt editorial at a time