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 ...
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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Bond hits 4% while Defi hits 0.01%! So why is Defi not working anymore?
To attract more funds to invest into the pool, either bonds or Defi, you need to find other investments that can lend more returns than you pay to investors.
Defi used to be successful because the crypto market seemed to rise unlimited to the moon.
However, when the market falls, the yield cannot cancel out the payoff to investors, making the pool return negative and forcing lending unprofitable.
Even the crypto market has unregulated arbitration to make the difference, and they can no longer produce a profitable strategy and make double-digit yields.
https://twitter.com/dan_pantera/status/1546871339331604482
Why did Defi fail?
Defi's concept is innovative because it offers an opportunity for less disadvantaged business owners to borrow and make the business continue operating.
The problem is when Defi is an investment instrument for only making profits in the short term.
There is no mechanism to prohibit withdrawing and to make the pool sustainable for long-term investment.
And the hype of attracting more investors with crazy and unsound yield percentages makes the Defi project lose its credibility.
I do think Defi is a potential future fintech, but it is not a kind of easy money pump and dump scheme.
I continue being skeptical about the Defi.
Support writer here or join Medium here
Photo by Pascal Meier on Unsplash
Bond hits 4% while Defi hits 0.01%! So why is Defi not working anymore?
To attract more funds to invest into the pool, either bonds or Defi, you need to find other investments that can lend more returns than you pay to investors.
Defi used to be successful because the crypto market seemed to rise unlimited to the moon.
However, when the market falls, the yield cannot cancel out the payoff to investors, making the pool return negative and forcing lending unprofitable.
Even the crypto market has unregulated arbitration to make the difference, and they can no longer produce a profitable strategy and make double-digit yields.
https://twitter.com/dan_pantera/status/1546871339331604482
Why did Defi fail?
Defi's concept is innovative because it offers an opportunity for less disadvantaged business owners to borrow and make the business continue operating.
The problem is when Defi is an investment instrument for only making profits in the short term.
There is no mechanism to prohibit withdrawing and to make the pool sustainable for long-term investment.
And the hype of attracting more investors with crazy and unsound yield percentages makes the Defi project lose its credibility.
I do think Defi is a potential future fintech, but it is not a kind of easy money pump and dump scheme.
I continue being skeptical about the Defi.
Support writer here or join Medium here
Photo by Pascal Meier on Unsplash
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