Wonderful story of DeFi: Some people get rich, some become farmers, and some think it is a scam

Editor's Note: This article comes fromGolden Finance, reprinted by Odaily with authorization.

Editor's Note: This article comes from

Golden Finance

Golden Finance

DeFi has become the hottest hot spot in the currency circle at the moment.

In mid-June, Compound launched "liquidity mining" and launched "borrowing is mining". Its governance token COMP provides users with incentives more than 6 times the original plan. The price of COMP then soared, doubling 6 times in 3 days.

Afterwards, various "monster" DeFi tokens took turns, and it was easy to increase by three or five times, ten times or a hundred times. What's even more amazing is that public chains, wallets, and exchanges have also begun to scramble for DeFi hotspots. Among them, public chains are the worst, "unlocking" DeFi one after another, with the momentum of "replacing Ethereum"; Audits are rushing to launch DeFi project tokens and contract products, counterfeit coins, air coins, garbage coins, magical reality.

However, under this wave, new industry KOLs have emerged. They flashed in various communities and online live broadcasts, telling their ways to get rich. But seeing the newcomers laugh, how can I hear the old ones cry. Those "classical leeks" who guard Bitcoin have become the object of ridicule. Conservative and unmotivated are labels that cannot be torn off their heads.

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Rampant DeFi

From June 21, the total market value of DeFi tokens just exceeded 5.5 billion US dollars. By July 21, the total market value of DeFi had exceeded 10 billion. By August 21, its total market value had reached 12.463 billion US dollars. An increase of over 126% in two months.

How crazy is DeFi?

Tron founder Justin Sun’s newly issued DeFi token JST has doubled 17 times within a month.

The historic moment happened on August 20, when the price of YFI surpassed BTC.

On the evening of August 20, CoinGecko data showed that the price of YFI rose to $14,878 in the past 24 hours, becoming the first altcoin in history to surpass Bitcoin in price. It is reported that since the establishment of YFI, investors have had great interest in YFI, and the market value of YFI has increased by 32,000% in the past month.

In addition to various projects that have skyrocketed and plummeted, financing in the DeFi sector continues to be hot.

According to incomplete statistics, in August alone, there were 9 related financing events, involving an amount of about 21.54 million US dollars (excluding projects that have not disclosed the specific investment and financing amount), and most of them occurred in the seed round.

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DeFi in the eyes of old leeks

Under the DeFi boom, two different community voices appeared in the currency circle, "new leek" and "old leek".

The new leeks are mainly based on DeFi tokens that can easily increase by 10%, 20% or even higher, while the old leeks are mainly based on mainstream tokens.

Liu Fei, the co-founder of Bixin, told Jinse Finance: “We have been hurt by various projects such as ICO, Fcoin, FOMO, PlusToken, etc., resulting in risk aversion, unwillingness to contact or even rejection of projects and projects that we don’t understand. Concept, the safety of the principal is more concerned about the return of profits."

In Liu Fei's view, the old leek speculation is more about the pursuit of certainty and logic, and he is more willing to earn bitcoins. "The opportunity cost of participation is relatively high. The cash flow level of the existing business is not bad. If you participate in everything, you may not be able to do the current work well. This round is more willing to do more ETH."

In this wave of market, "Old Leek" Li Xiaolai is also not on the high-speed train of DeFi. "After careful research for a long time, I feel that DeFi, which people in the blockchain industry are excited about, is essentially just the DAO that forked Ethereum before. In fact, there is no progress. It is still "issuing coins" in essence—— Find a reason, pack a team, then describe a scene, and issue coins. It's just that this time, I'm not responsible for the coins sent... Damn, I guess it's even more chaotic than last time. I'd better keep coins honestly..." Li Xiaolai said on Weibo.

Chen Shuo, the inevitable capital who calls himself an "old leek", seems to be more Buddhist. As long as you are bullish on Ethereum and hold Ethereum because you are optimistic about DeFi projects, you can participate in DeFi.

In his opinion, the essence of the new DeFi project so far is to provide a more fair and transparent digital currency issuance mechanism, at least in the initial stage of mining, and this issuance mechanism is better than the direct issuance of ERC-20 It is much more complicated and requires more time and development costs. This kind of difficulty in distribution makes it impossible for everyone to publish, making this wave of market prices likely to last longer. At the same time, these contracts are logically reasonable and do have some application value, which can be said to be much more practical than directly issuing an ERC20.

"If the currency circle in 2017 is a grassland with the same grass (the market is the same currency, but the story behind it is different), then the market brought by the DeFi project this time is a forest with a variety of creatures. Forest ecology The system is more complex and more resistant to risks than grassland ecosystems."

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New Currency Circle Investment Outlook

With the emergence of COMP liquidity mining, the Bitcoin veteran "Super Monarch" entered the Defi world with a fluffy attitude. In the eyes of Super Jun, DeFi tokens are a huge bubble, and the bonus lies in the numbness and information asymmetry of investors in the secondary market, which is equivalent to wallet users harvesting exchange users.bitcoin"In the DeFi field, there is a complete harvesting chain, miners>farmers>Uniswap users>centralized small exchanges>three major exchanges. The three major exchanges should not list these DeFi tokens, otherwise it is equivalent to providing their own customers It was given to the farmers to harvest." Super Jun explained.

However, as the front line of working on the "farm", Chao Jun said that there are currently some Defi projects that can be rolled out in the market, but they are no longer available. The current few are quite declining, and it will probably be the slack season.

Is the old leek not keeping up with the times and will eventually be eliminated; or is the new leek occupying the high ground, making a fortune, and slapping the waves on the beach? "There is no question of who beats whom. The field is different and there is no substitution relationship. However, it is still bullish.

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