07-23-2020, 06:58 PM
DeFi: a discussion on the rise of Decentralized financial services
<!-- SC_OFF --><div class="md"><p>The last few months I’ve noticed a surge of DeFi usage and I’m trying to wrap my head around it’s usage. Flash loans, I can understand. People take out a loan by hedging collateral, and repay it without losing their initial collateral. It’s great since you get the fast cash you need (and you don’t lose the crypto you’re holding in case it moons).</p> <p>But all the rage regarding curve bonding, how everyone is taking loans, staking it in other services to mint governance tokens, which then are used elsewhere to produce another token etc. </p> <p>Is this healthy long term? It’s not as if someone is adding cash in their Akropolis account and they just accumulate interest from that. It feels like chaos when I try to think about why that happens and how it potentially helps the end user who wants a loan. </p> <p>This is not an attack in anything. I feel dumb and I enjoy a good discussion (if the community is up for it).</p> </div><!-- SC_ON --> Kind Regards R
<!-- SC_OFF --><div class="md"><p>The last few months I’ve noticed a surge of DeFi usage and I’m trying to wrap my head around it’s usage. Flash loans, I can understand. People take out a loan by hedging collateral, and repay it without losing their initial collateral. It’s great since you get the fast cash you need (and you don’t lose the crypto you’re holding in case it moons).</p> <p>But all the rage regarding curve bonding, how everyone is taking loans, staking it in other services to mint governance tokens, which then are used elsewhere to produce another token etc. </p> <p>Is this healthy long term? It’s not as if someone is adding cash in their Akropolis account and they just accumulate interest from that. It feels like chaos when I try to think about why that happens and how it potentially helps the end user who wants a loan. </p> <p>This is not an attack in anything. I feel dumb and I enjoy a good discussion (if the community is up for it).</p> </div><!-- SC_ON --> Kind Regards R