DeFi Risks Part 1

DeFi 101 Course 2021
#121

Check out the DeFi Pulse link, look at the rates for different cryptos, compare them to the rates I mentioned in the video, and comment why you think they are different. Then comment on at least 2 other posts so we can all learn from each other.

Rates varies based on risk factors. Supply and demand play a major role. Fed fund rates can affect the demand of any Defi cryptos.

#122

The future is certainly DeFi it also has issues unique to its design. As the industry matures more clarity and security will emerge. Traditional banking has problems, but they also offer some protections. Takes time to transition from the old ways into the new ways.

1 Like
#123

Simply put, I agree.

#124

Several links in the lecture are unfortunately outdated. I used defillama.com/yields

In the video USDT had the following rates
Aave: 2.94 %
Compound: 2.65 %

Today on DeFi Llama I found the following rates
Aave (V3, ethereum chain): 10.12 %
Compound (V2): 11.41%

The increase could be due to growing demand for USDT, increased competition among DeFi platforms and growth of the overall DeFi market.

#125

Rates for crypto are much more attractive than traditional bank rates.

They are different because:

  1. There is no middleman.
  2. There is more opportunity to make large amounts of money on the Blockchain, ~when~ you have leverage. People borrowing crypto are will to pay 7%± when we they can make 25% with your crypto.
  3. It is harder to game the system and cheat people when its on the blockchain.
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#126

The link doesnt lead anywhere now.