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Not being in the space myself - can you generalize the whole thing by saying it is about any one thing? Speculative asset appreciation seemed to mostly be what
by monetus 4y ago
Not being in the space myself - can you generalize the whole thing by saying it is about any one thing? Speculative asset appreciation seemed to mostly be what drove people to it. Curious about the good emergent behaviors, as the bad ones are literally advertising themselves.
- latchkey 4y agoI'm getting downvoted on my comment, but your provides good value by asking for more information, so maybe I can earn back a bit of karma with a kind reply. A good example of the value of DeFi is a project like AAVE [1]. It isn't about asset appreciation, it is about creating a frictionless lending/borrowing market based on collateral that anyone can participate in. If I have some crypto and I want to take a loan out against it for something else, I can do so without having to go to a bank, ask for permission, KYC, or anything. The protocol itself is fully decentralized and no single entity can shut it down (or even modify it). It literally happens in a single transaction. It is global. It is 24/7. It is transparent and on-chain. Oh and the rates are actually pretty decent (no middleman). People might ask 'why' one would want to do that and it really is just an answer of something that happens every day in TradFi markets as it is. It may not be helpful for you, but it certainly has value. Sure, people can use this for speculation, drugs or whatever. But I personally see this as extremely empowering for a variety of my own reasons. After spending the last year+ very deep into DeFi, I've seen my fair share of scams and hacks. But my eyes have also been opened to the potential of what is out there. DeFi is the first real use case of crypto that I've seen that has value. [1] https://aave.com/ https://aave.com/