DeFi needs to start creating real-world value if it wants to survive

  • 📰 Cointelegraph
  • ⏱ Reading Time:
  • 18 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 10%
  • Publisher: 51%

Coin Coin Headlines News

Coin Coin Latest News,Coin Coin Headlines

Value can’t come out of thin air. After a fall from its peak value of over $250 billion, speculations around the survival of DeFi are not looking too good.

Equally telling is the fact that on-chain loans tend to remain on-chain within the largely siloed blockchain ecosystem. An on-chain protocol can only lend you an on-chain token, and as we know, on-chain assets are not very integrated into the real-world economy. So, whether you are going after an arbitrage opportunity or staking your loan into another yield protocol, your loan — as opposed to traditional finance lending — creates little in terms of real-world value.

The time of uninhibited yields shooting for the moon may be over, but there are plenty of interest-generating real-world activities waiting to be brought on-chain. All of them offer more familiar business models, allowing projects to up their risk management gain while also offering investors returns based on actual tangible outcomes.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

BUY: $EVCoin EverestCoin

DeFi and web 3 are still misunderstood. Communities like bitDAO allow users to contribute to the treasury through proposals and governance, and this has been unparalleled in centralized platforms. This is the type of user utility that takes things to the next level

Well, with the new Innovation and solutions coming to Defi, survival is sure. Socialswap dex brought solution to the cost of transaction and refunds almost 100% of fees spent on the dex. Fully audited contracts and top security. socialswapdefi swap defi sst Socialswapdefi

The bear market removed more than 65% of the accumulated capitalization. Other challenges arise that create some doubts, given the decentralized execution environment and in this field iEx_ec has the solution. $RLC

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 562. in COİN

Coin Coin Latest News, Coin Coin Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bitcoin Now Accepted by Two Ukrainian Tech Giants: ReportCrypto adoption in Ukraine expands across 100 stores owned by two of Ukraine’s largest tech retailers.
Source: Crypto_Potato - 🏆 568. / 51 Read more »

NFL Team Houston Texans Now Accept Bitcoin Payments for Game SuitesThe development is part of an exclusive partnership with crypto wallet provider BitWallet.
Source: Crypto_Potato - 🏆 568. / 51 Read more »

What Ethereum’s Big ‘Merge’ Means in Crypto LandThe crypto platform is prepping for a major systems overhaul that could, among other things, make it more energy efficient. Magic coins join forces
Source: WSJ - 🏆 98. / 63 Read more »