I remember briefly DASH was talking about MaaS, Money as a service and how different types of "Money" might be better for different types of transactions. For instance, bitcoin for large international transactions and something lite for the always talked about "coffee" transaction.
I see defi the same way, but also.. If someone is paying you interest on something in exchange for liquidity if there is no real reason for the transaction it will eventually lose value and fail. If I am opening an exchange and I need investment that would be a good time to pay for liquidity.
Just to put money in pools for no reason is pointless and valueless and over time that will show up in the price.
Posted Using LeoFinance Beta
I see your point. Uniswap trading pairs serve a need, so they continue to generate income for a long time, but many yield farms generate trading pairs just for the incentives, there is no utility in the tokens at all.
Posted Using LeoFinance Beta
For instance, we really do need deeper liquidity in Hive and HBD if we want large investors to stake.
Vs. the obvious "no point" Farm of CakePop. No one needs a cakepop.
I could go on here, but I'll leave it to the reader to assess, "how real is your pool".
Posted Using LeoFinance Beta
I love the phrase: How Real is your pool.
I hope my BUSD is safe :)
Posted Using LeoFinance Beta
OMG! We don’t need CakePop?
It’s my best investment of 2021!
Hi Ho Hi Ho it’s our first IDO!
Ha Ha Ha
Just joking :)
Posted Using LeoFinance Beta
#confessions I've never bothered to sell mine either. lol.
I think this is an excellent question we need to ask. Now that the defi summer of yield farming is over. What utility do these tokens have? Why doesn't their value just go to zero?
Posted Using LeoFinance Beta
In some cases there is a real use case for the liquidity, in other cases it is a game of giving one token for taking steps of staking another one.
That might last a while, but if there is no point, I can't see how it ages well.
Yes indeed, we have seen repeatedly how yield farmers moving capitol from one defi staking project to another drive up project tokens getting into the project, and drive down project token price getting out. Then when the TVL swells and the APRfalls their is enough liquidity for the yield farmers to get out with out affecting price to much, if they get out while other investors are still getting in…
Posted Using LeoFinance Beta