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/biz/ - Business & Finance

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22822965 No.22822965 [Reply] [Original]

What is defi?

>> No.22823024

>>22822965
A scam

>> No.22823028

>>22822965
a bunch of shitcoins

>> No.22823041

>>22822965
Decentralized Finance

>> No.22823046

>>22823024
>>22823028
what's the difference from the old shitcoin scams?

>> No.22823057

>>22822965
read these:

https://fantom.foundation/blog/fantom-finance-whats-coming/

https://fantom.foundation/blog/introducing-fmint/

>> No.22823059

Longer version:
a decentralized network of "tokens" or "coins" to somewhat resemble currency using the Ethereum platform and designed by chinks and poos to pump and dump shitcoins

>> No.22823064

>>22822965
decentralized finance it's just expanding what you can do with crypto. instead of just p2p transactions you can do more like lend. or shitty projects like libertas where they're going to put CP on a blockchain.

>> No.22823085

>>22823057
ok, but fantom was an old scam, are they jumping on the DeFi train too?

>> No.22823087

>>22823046
It's "Decentralized" meaning not one central network or bank controls the coins. Theoretically meaning that the developer of the shitcoins don't own the majority of all the coins they make, but they usually do anyways

>> No.22823090

it's like a bank on the blockchain, people "lock" in crypto assets and other people can borrow it and pay back with interest

>> No.22823115

>>22823085
they are implementing Uniswap on their Opera network, but read the links and you'll get an idea of what DeFi does

>> No.22823210

>>22823115
Who would need to lend shitcoins and why, honestly?

>> No.22823519

>>22822965
It's like a hifi

>> No.22823699

>>22823519
now i get it, thank you

>> No.22823836

>>22822965
Here's an ADD person's take on what is meant by DeFi today. It is more than this but this is the DeFi ponzi bubble:

You lock up your coin1 in a contract2. The contract mints out coin2 to pay you interest. Normally at this point, you also borrow a pile of coin2 using your coin1 as collateral. You then invest coin2 in contract3. Contract three pays out interest on your staked coin2s. It pays these in coin3. You then also use your coin2 as collateral to borrow coin3. Then you shill like absolutely crazy. You trade and you shill. You hope that you can swing trade back and forth and pay off your coin3 loan so you can take out your coin2 collateral and use some of your profits to pay back your coin2 loan and get back your coin1 collateral. Then you keep the difference.

Or you just play bank and let other people take the loans and you pray that they can hustle them through other DeFi ponzis and Uniswap and keep your contract solvent.

It's a chain of ponzi schemes. It lets you play money printer go brrrrrrr and see just how far you can take shit before 1 of the levels rug pulls and destroys your capital.

Note that coin2 and coin3 are just governance tokens. They don't do shit except be valuable.

Truly a degenerate's game. It is fast and approaches peak stupid, but things like this will probably be used legitimately once there is more tech in the system.