"Have you heard? **O's new project is online, and the annualized income is several thousand percent!"

For a while, countless retail investors began to enter the game under the banner of "reckless", "chong" and "shuttle", and by the way practiced the three treasures of "mining", "airdrop" and "new recruiting" to prepare for a big job. However, survivor bias makes many people ignore the situation of "broken shovel" and "broken investment". There are far away Multi and Popcorn of Binance Chain, and MFD and HBO of Huobi Heco Chain. Investors are "earth dog" Bitten all over the body.

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1. Lazy people "distinguish dogs" refer to the north

Maybe you will say, what should I do if I don’t know code, have never studied finance, and don’t bother to read white papers? In fact, using the following information, you can also easily and conveniently identify whether a project is a "earth dog"!

1. Review art/UI

As a DeFi project, the page and LOGO are the "face" of the project. Is the overall color scheme of the page "anti-intellectual"? Is the entrance design easy to use? Is there a multilingual entry? Does it look like a website from the win98 era?

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Changes in the SUSHI logo

2. Dive into the community

For a project, the domestic WeChat community, foreign Telegram community, and official channels such as Weibo and Twitter should all have good operations. As the "inspection indicator" of the project, the update frequency and professionalism of the official voice channel are also a good dimension. You can even check the update frequency of the project code on GitHub.

In addition, we can enter the project community, watch the number of active people, and distinguish whether everyone is advocating "brainless" or discussing rationally. Fanatical "brain fans" are obviously not as good as professional analysis and discussion, which is more conducive to the ecological construction and development of the project.

3. Start searching for information

Source: DeFi Pulse

Source: DeFi Pulse

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2. A guide to "appreciating dogs" for experts

If you have certain industry experience and professional foundation, and are willing to spend more time to ensure that you have a greater probability of lightning protection, the following technical flow methods are also worth trying.

1. Introductory white paper

Source: OKEx official website

Source: OKEx official website

You can view the white paper through the project’s official website, official Twitter, or three-party platforms such as Feixiaohao and Block Sky Eye. We can search through Google to see if the content of the white paper is similar to other projects, whether to focus on the value, technology and prospects of the project itself, or to focus on it. A bluffing concept that repeatedly praises itself.

In addition, the project operation mechanism and token distribution model will be announced in the white paper. You can check whether there are any loopholes in the project gameplay, whether there are private placements and lock-ups, and whether the tokens are pre-mined. These will have an impact on the project and the value of tokens.

2. What does the audit say?

The smart contract of the DeFi project needs to be stamped by the audit agency, and the audit agency and audit report should be disclosed. Most of the projects that have not been audited are local dogs.

Projects certified by well-known auditing institutions are more trustworthy. For institutions that have never been heard of, we can check their background through Sky Eye. For example, recently, an audit company for a project on the public chain of an exchange was found to be the company of the exchange’s senior executives. It is definitely unreliable to audit yourself; we can also look at the potential risks pointed out in the audit report, and the risk levels are How much, and how the project party will improve.

3. Tracking on the chain

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Source: Blogger @Bitcoin

Using the above methods comprehensively can greatly reduce the probability of encountering "earth dogs". However, the popularity of exchange public chains has become a phenomenon that cannot be ignored. Binance Chain and Huobi Heco Chain have multiple projects mining, and OEC will soon support EVM.

In addition to the carnival, it should be noted that the public chain project of the exchange does not mean the endorsement of the exchange. We should still maintain independent judgment, face up to the high risks of participating in DeFi with high returns, and be responsible for every investment we make.

Note: This article is contributed by the community and is not original by Blockchain Knight. Please contact the author if you need reprint authorization.