[kemonocode]

I knew crypto detractors were going to have a field day with this one. ;)

With DeFi, you're simply exchanging one type of risk for another. Without due diligence you're pissing your money away- as it is to be expected. And as it was brought up before, this was an unaudited contract that had been running for what, weeks? Months?

Personally, I cannot say I understand DeFi deeply enough to get into the intricacies of "yield farming" and such, so I just avoid it altogether. Only have a relatively small amount of USDC and DAI accruing interest on Compound, which has at the very least been audited [0] a few times before, but even if it were to go tits up tomorrow for whatever reason, at least I understood there was that risk.

[0] https://compound.finance/docs/security

[ayngg]

The big thing that people get caught up on is the fact that the space is essentially permissionless and because of that there is no regulation meaning everyone is entirely responsible for themselves, a level of responsibility that is foreign to most people. Anyone can make anything they want, which will inevitably lead to projects that outright scams, or fail because of bugs or misaligned incentive structures. Of course these are the projects everyone here loves because it reaffirms their belief that the entire space is a scam.

I think the real story is the insatiable appetite for get rich quick schemes in today's world, because without that many of these projects would simply not be used. IIRC they had some insane yields of like 50k% apy on their token, anyone with any sense would know to run away from anything promising that.

[kemonocode]

If I understand things correctly, it didn't start out with such insane yields- that merely happened once it lost its peg. Even with my skepticism when it comes to stablecoins in general, I'd first put money in something that's overcollaterized so it has greater chances to survive "black swan" events (Such as DAI) or that has been properly audited so there's a guarantee $1=1 token (None yet- USDC is far less dodgy than USDT, but it too has only been merely audited, not attested.)

[bombcar]

I mean you don't need to do much due diligence to know that a 30,000% APR is unsustainable - so you're just gambling that you can get in, get some, and get out before it levels off or explodes.