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> And still not a single example of a good real world use case. Have you ever heard of lending protocols? You can park dollar in a smart contracts and earn a c
by G3rn0ti 5y ago
> And still not a single example of a good real world use case.
Have you ever heard of lending protocols? You can park dollar in a smart contracts and earn a couple of percent interest per year. AAVE and Compound are quite popular examples.
DAI is a decentralized stable coin trying to track the dollar value that’s been running for years. It is also implemented as a smart contract.
Then there are decentralized exchanges where you can swap different tokens on the Ethereum block chains. You can also park tokens in such money pools and also earn interest.
The biggest problem with Ethereum right now are the very high transaction fees that render these otherwise quite successful examples useless for people holding only small amounts of tokens. But this can be blamed on the ongoing crypto bubble.
- snarf21 5y agoRight, but you answered your own question. Sure you can lend other people crypto so they can gamble with it. It is all a pump and dump scheme. People aren't borrowing crypto on DeFi to buy a car or house. Crypto isn't practical money. I also don't think that layer 2 or other off-chain will be able to solve it. This is just "money" that is controlled by someone, just not a specific government. As soon as the government makes it illegal, almost all of it will go to zero.
- G3rn0ti 5y agoWell you find DeFi laughable. Ok. You know what was called laughable in the nineties? Ordering Pizza over the Internet. It didn’t go over night but today almost everybody is ordering pizza over the internet. Maybe Defi will take over finance in 20 years from now. Maybe it won’t. But I would be careful to dismiss any young and promising technology w/o throughly understanding it.