[leppr]

> It's such a shame that so much of the crypto world relies on people being uninformed.

You can extend that take to almost all of DeFi yield farming as well. APYs almost always rely either on a greater fool buying the useless governance tokens (which almost always trend down in price), or on late-comers paying entrance/exit taxes to early entrants. That's without even going into the tokens whose central mechanics are merely about disguising Ponzi schemes (Fei, Safemoon, Hex, to name only the billion dollar+ ones).

I'm also a die-hard crypto fan, but having to constantly look out for Ponzis around every corner is tiring.

[ketamine__]

The elephant in the room with DeFi is always the underlying asset. It’s like being your own bank (but only if your bank vaporizes your balance every so often).

[capableweb]

> but only if your bank vaporizes your balance every so often

What you mean here exactly? I've been doing DeFi stuff for almost a year (Ethereum) and my "balance" has never been "reset". You must be doing something very wrong if that keeps happening to you.

[ketamine__]

There is the risk of impermanent loss with providing liquidity and the risk of the underlying asset. Thinking this is anything like a bank account is a big mistake.

[capableweb]

Sure, risks exist everywhere. But you claimed "but only if your bank vaporizes your balance every so often" which when read seems to indicate that your balance gets reset randomly/at a set interval, which couldn't be further from the truth.

Also, no one ever said DeFi is like a normal bank account. In fact, the biggest feature of cryptocurrencies and DeFi is exactly that it's not a bank account. It's likely the top reason people are involved in the first place.