Because the DeFi market is not, well, centralized and has no regulations requiring a certain level of liquidity for platforms to exist, a huge number of DeFi projects have way less liquidity than advertised.
Its no wonder that the DeFi market eventually adopted an infamous reputation of it being a hotbed for scams.
Of course there will always be an exception with DeFi projects like AAVE and newer ones on the scene like Fluid Finance which actually has owned liquidity, something that is quite rare to find in this market given that it isn’t required for project to have owned liquidity.
The moral of this story is that you shouldn’t really trust any project right away regardless of what they show in the ads. You need to make extensive research about the numbers being put out first and then decide if its the right investment for you or not.
This is important cause by the looks of it, a lot of people are investing right away based on what they’re seeing in the advertisements.
Sounds like an ad for fluid finance. People have peddling the protocol owned liquidity for years now it’s not new
I provide a lot of liquidity in some protocols, and that’s only 1 random guy. What are you talking about?
If only there was some public record of transactions that one could look at to see if there is in fact liquidity. Maybe with web4.0
Funny, if you mention „platform“ or „project“ in combination with „not centralized“..
DeFi is a hotbed for scams not just because it’s like any new tech, but specifically because Bitcoin is the only hope, it’s what’s really decentralized, and these other coins are meant to distract and detract from the One True Hope.
Just look at Eth cramming changes down ur throat. “Decentralized” my ass
Bitcoin is the DeFi: https://www.coindesk.com/layer2/2022/03/24/bitcoin-is-far-more-than-a-new-form-of-money/
And there is mm finance