The DeFi market is WAY less liquid that you’d like to think

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.

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6 thoughts on “The DeFi market is WAY less liquid that you’d like to think”

  1. Sounds like an ad for fluid finance. People have peddling the protocol owned liquidity for years now it’s not new

  2. 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


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