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xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
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In 2021, the most mentioned phrase was Defi, but no one wants to talk about it in 2022.
Multiple explosion of the Defi pushes believers away from the service's credibility.
https://twitter.com/Degen_Alfie/status/1560646139673997319
You probably wonder what Defi then?
Defi or Decetranlized Finance is a myth.
There are many benefits that Defi claims to have:
✅ permissionless and inclusive
✅ real-time and transparent transactions
✅ users can retain custody of their assets
✅ smart contracts are highly programmable
✅ DeFi data is tamper-proof, secure, and auditable
✅ many DeFi protocols are open source
Those benefits are turning into questionable features:
🤔 rug pulling potential
🤔 there is no way to dispute transactions
🤔 owners bear risks of their losses
🤔 smart contracts are manipulatable
🤔 audits are subjective
🤔 protocols are hackable
In 2021, the most mentioned phrase was Defi, but no one wants to talk about it in 2022.
Multiple explosion of the Defi pushes believers away from the service's credibility.
https://twitter.com/Degen_Alfie/status/1560646139673997319
You probably wonder what Defi then?
Defi or Decetranlized Finance is a myth.
There are many benefits that Defi claims to have:
✅ permissionless and inclusive
✅ real-time and transparent transactions
✅ users can retain custody of their assets
✅ smart contracts are highly programmable
✅ DeFi data is tamper-proof, secure, and auditable
✅ many DeFi protocols are open source
Those benefits are turning into questionable features:
🤔 rug pulling potential
🤔 there is no way to dispute transactions
🤔 owners bear risks of their losses
🤔 smart contracts are manipulatable
🤔 audits are subjective
🤔 protocols are hackable
I do not see any necessity for Defi protocol other than making it convenient for whales to wash away their money at this point.
The majority of the applications lack consumer protections.
Even though collateral requirements are high, it does not prevent the sudden liquidation of companies during the market downturn.
Despite all innovations on the Defi, transactions are traceable, and parties of transactions are identifiable.
Of course, that will go against the purpose of the Defi and cryptocurrencies, but to improve consumer protections, it is also important to shell users from any potential losses.
One way is to provide a unique NFT as their identification check to help users to verify their transactions.
Another way is to deal with the Cefi platform and its consumer protection services.
Highly leveraged companies can also check frequently with their leverage so that their funds will not be liquidated during the market downturn.
We can do more to help protect users rather than victimize them and set Defi away from the potential future.
If you enjoy reading my articles, buy me a coffee here.
Photo by Lukas Blazek on Unsplash
I do not see any necessity for Defi protocol other than making it convenient for whales to wash away their money at this point.
The majority of the applications lack consumer protections.
Even though collateral requirements are high, it does not prevent the sudden liquidation of companies during the market downturn.
Despite all innovations on the Defi, transactions are traceable, and parties of transactions are identifiable.
Of course, that will go against the purpose of the Defi and cryptocurrencies, but to improve consumer protections, it is also important to shell users from any potential losses.
One way is to provide a unique NFT as their identification check to help users to verify their transactions.
Another way is to deal with the Cefi platform and its consumer protection services.
Highly leveraged companies can also check frequently with their leverage so that their funds will not be liquidated during the market downturn.
We can do more to help protect users rather than victimize them and set Defi away from the potential future.
If you enjoy reading my articles, buy me a coffee here.
Photo by Lukas Blazek on Unsplash
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