What Defi?! It is more like a Nofi

xuanling11
Coinmonks
Published in
2 min readAug 25, 2022

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Photo by Lukas Blazek on Unsplash

What Defi?! It is more like a Nofi

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.

You probably wonder what Defi then?

What Defi?

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

Why Defi?

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.

How to improve Defi?

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…

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