Three years later and DeFi is big business. A user with a crypto wallet can trade digital assets, get loans, or take out insurance, among many other things. Some $90 billion of collateral is locked up in these services, and more than 10 million people have downloaded MetaMask, one of the most popular digital wallets used to open up access to these networks.
At the same time “DeFiChain” keeps its own consensus mechanism and function set, allowing for all those characteristics that Bitcoin does not inherently have.
I still see defi as pretty useless for the average Joe. I almost never find myself needing to use all the token swapping services and I don’t really trust any of the lending or borrowing or staking shit. Lots of hacks and other black Swan ass events. I’d rather keep my coins on my hardware wallet and leave them there then risking it.
Not being a hater – I think defi as a concept is the future. Just not really useful to me right now
DeFi will not be called DeFi anymore. It will just be the Finance.
The exponential growth of DeFi will continue. That’s a fact and the possibilities and use-cases for DeFi are endless. But there are for sure also many risks for the average “investor”.
You have to be very careful. Smart contracts can get hacked, there are rug pulls and a lot more of bad stuff is going on. People need trust in the DeFi-services. And the question for the next years will be: How can a service build trust? There are many DeFi-services out there which have a huge TVL and are operating for a long time without “acting bad” or getting hacked. And investors make huge profits out of these services.
You can compare it with the following real life example: Would you give your money to a bank which is called “TrustMeBank Inc” which is recommended by a YouTuber, but you and your friends have never heard of this bank, and there is only sparse information about this bank available in the internet ? Probably not. And it’s the same for DeFi-services.
DYOR. True for traditional finance, true for DeFi.