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Golden Observation | DeFi Wonderful Story: Some people get rich, some become farmers, and some think it is a scam



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 within 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.  

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.

Golden Morning | Overview of important overnight news on August 27: 21:00-7:00 Keywords: SEC, Tether, y3d, MasterCard, Filecoin

1. The US SEC will modify the definition of qualified and institutional investors, which may benefit the encryption industry;

2. Wuxi Rural Commercial Bank realizes the automatic process of the bank direct connection system of the cross-border financial blockchain service platform;

3. Tether issued an additional 200 million USDT on the TRON network (authorized but not issued);

4. y3d launched the governance voting module, the first proposal will determine the distribution of y3d tokens for yfi and yfii;

5. Data: retail investors may soon flood the crypto market;

6. The Singapore subsidiary of MasterCard applied for a patent for payment system based on Iota Tangle;

7. Fidelity’s broker-dealer plans to launch a new bitcoin fund with a minimum investment of $100,000;

8. The reward pool of the Filecoin Big Miner Test Contest reached 200,000 FIL;

9. Data: The weekly P2P trading volume of cryptocurrency in India continues to grow. [2020/8/27]

How crazy is DeFi?

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

Golden Evening News | A list of important developments on the evening of April 7: 12:00-21:00 Keywords: blockchain + electronic certificates, hedging tools, 210 billion US dollars

1. Shunyi District took the lead in promoting the application of "blockchain + electronic license" to Shenzhen Street.

2. Tesla cooperates with CargoSmart to use blockchain technology in the process of cargo release.

3. Inventor of the Bollinger Bands indicator: Affected by the epidemic, Bitcoin has become a risk-on-risk-off tool.

4. In the past 24 hours, more than 12 transactions involving nearly 180 million XRP have been detected

5. After the halving of BCH and BSV, miners will transfer more computing power to BTC in a short time

6. Be wary of phishing website airdrop-box airdrop HT scams

7. The total market value of global cryptocurrencies has exceeded 210 billion US dollars

8. Bitcoin continued to rise, with an intraday low of $7,073.33 and a maximum of $7,458. [2020/4/7]

37 hours after the start of the project, Yam Finance’s token YAM plummeted by 98% due to a bug in the project’s smart contract. It collapsed in just 37 hours after it was launched, and its total locked-up amount reached an astonishing $700 million.

Golden Morning News | January 12 Overnight Important Updates: 21:00-7:00 Keywords: European Union, Jinan, Alliance Blockchain System, Ethereum 2.0, Bitcoin Address

1. EU Commissioner: The EU is developing rules on encrypted assets and stablecoins.

2. Beijing Economic and Information Bureau: More than 1,000 divisions in 60 units in Beijing have been uploaded to the chain.

3. There are nearly 4,000 blockchain companies in Shenzhen, and the first city-level blockchain association is listed.

4. Jinan officially released the blockchain system of the National Human Capital Industry Public Service Platform Alliance.

5. The Ethereum 2.0 Coordinator releases the final version of the ETH 2.0 specification version 0.1.

6. In 2019, BTC added more than 300,000 addresses every day.

7. BTC is currently at $8,027, down 0.14% in the past 24 hours, with a market value of $145.502 billion. [2020/1/12]

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.

Analysis | Golden disk: LTC encounters short-term resistance, pay attention to the risk of callback: Gold disk analysts said: LTC has risen by 3.31% in the past 24 hours, and the short-term is obviously blocked around $76.50. Be careful about the risk of retracement. The lower support is concerned about $75.00. [2018/8/6]

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.

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

Jinse Finance live report Liu Dahong, the founder of Beijing Lord Technology: You can’t look at the blockchain with traditional Internet thinking: Jinse Finance live report, in the 2018 China Blockchain Summit Forum, with "What kind of future will the blockchain bring us?" At the round table forum, Liu Dahong, the founder of Beijing Lord Technology, said, "Blockchain is an upgraded version of the Internet, but we cannot look at blockchain with traditional Internet thinking. Blockchain can connect to the future Internet of Things and AI. From here On the one hand, the blockchain is not the Internet.” [2018/5/20]

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."

However, Liu Fei said frankly that Uniswap has solved the problems of centralized exchanges for project review and listing fees, so it has practical value. It is hoped that this matter will continue to develop in the long run. The reason for not participating is also very simple, 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. "There is no regret about being empty. Our size determines that we want to participate in the middle and late stages, not early participants. We only invest in Bitcoin, Ethereum, platform coins, and privacy coins. The reason is because the volume is large enough and deterministic. good."

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 the grassland ecosystem.” 

Soros said that the economic history of the world is a series based on illusions and lies. The way to get rich is to recognize its illusion, play in it, and get out of the game before the illusion is recognized by the public. the

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.

"In the field of DeFi, 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 putting yourself The customers provided it to the farmers for harvesting." 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 it the old leeks that cannot keep up with the times and will eventually be eliminated; or is it the new leeks that occupy the high ground, make a fortune, and slap the waves on the beach? "There is no question of who wins who. The fields are different, and there is no substitution relationship. However, we are still optimistic about Bitcoin, Ethereum, platform coins, and privacy coins. DeFi participants should pay attention to contract risks and try not to invest in things they don't understand , Do a good job of risk control. Of course, the cautious old leek’s suggestion will affect everyone’s money. It can be ignored, hahaha.” Liu Fei said with a smile.

Super Jun said that although there are various ways to play in the circle, such as Defi, Dapp, Dao, Dex, etc., the biggest window facing the outside world is Bitcoin, and in many scenarios it is the only window.

Yang Shuo said that DeFi needs more small and innovative small projects, rather than a few large projects. Large projects tend to over-concentrate the small funds in the circle. Once a problem occurs, it will be a disaster for the entire industry, while small projects can Bring innovation opportunities to more developer teams and maintain the benefits of continuous development. Even if there are some problems in a bunch of small projects, it will not affect the overall development.

"I hope that everyone can settle down and develop their original ideas and projects step by step, instead of following the current hot projects. Because emotions are too easy to contagious, when DeFi is not popular, everyone can steadily promote project development. Once a small group When a project becomes popular, it’s easy to put down what you’re doing to follow suit, but you don’t know that what you put down may be the best one.”


The most noteworthy DeFi projects in 2020 (Part 1)

Ethereum’s market capitalization has reached its highest point since August 2019, breaking through $40 billion. So, what is propelling Ethereum to such highs again? It is the DeFi market. Today.

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