I critique DeFi as a general trend, but it's out of honest analysis, not bad faith.
Some DeFi proponents respond with insults, defensiveness, and tribalism, while others engage more constructively.
I recommend objectivity and constructiveness. It's good for your health.
Some DeFi proponents respond with insults, defensiveness, and tribalism, while others engage more constructively.
I recommend objectivity and constructiveness. It's good for your health.
Some issues with DeFi:
1) It doesn't get around the fiat on-ramp problem. It's just a post-fiat-onramp trading and leveraging environment.
2) In terms of total locked value, custodial stablecoins and custodial wrapped assets are a very big percentage.
1) It doesn't get around the fiat on-ramp problem. It's just a post-fiat-onramp trading and leveraging environment.
2) In terms of total locked value, custodial stablecoins and custodial wrapped assets are a very big percentage.
3) Even the underlying L1 smart contract networks generally aren't as decentralized or permissionless as they claim to be. Devs have much control.
So the problem DeFi aims to solve is limited, and there are typically layers of centralization under a decentralized veneer.
So the problem DeFi aims to solve is limited, and there are typically layers of centralization under a decentralized veneer.
imo, stateless decentralized money is the key innovation in this space (bitcoin).
Some other things are incremental tech stack improvements; for example I think fiat stablecoins can be a tech improvement for some aspects of existing fiat banking/payment rails.
Some other things are incremental tech stack improvements; for example I think fiat stablecoins can be a tech improvement for some aspects of existing fiat banking/payment rails.
Decentralized exchanges and liquidity protocols and digital securities can be useful, but only if built on a solid foundation.
And I would argue that potential tech upgrades to trading/leveraging platforms, while interesting, aren't exactly world-changing things.
And I would argue that potential tech upgrades to trading/leveraging platforms, while interesting, aren't exactly world-changing things.
The current iteration of the broad crypto industry is heavily circular and speculative, very much divorced from real-world utility or real-world digital securities.
lynalden.com
lynalden.com
Meanwhile, a number of VCs use tokens for fast exit liquidity, rather than build a sustainable company over a decade, thus aiming for high returns before achieving a successful outcome.
This is the common level of engagement I get from DeFi folks.
Let's ask for better.
Let's ask for better.
People ask me why I don't block people.
It's because I get them to block me instead, by simply linking to what they said.
It's because I get them to block me instead, by simply linking to what they said.
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