This is the first topic in a series that will address the subject.
Questions:
1. How do you build trust in DeFi, especially without regulation?
2. What are the things that users need to see for Dapps — Dexes — DAOs etc. to bring the sense of security needed to not lose money?
Answer:
Transparency, communication, roadmap, a reason for existing, dedication towards building a strong community, strong tokenomics, demonstration of ability and capacity to accomplish their purpose.
In a world of high expectations, a lack of transparency is a bad sign.
#1: Transparency —
The most important component of building trust is to be transparent — this is possible in blockchain because it is built on a code that can be written in a way that signals intent, specifically that it is not a scheme to take the user’s assets and disappear. This is especially true when you are given full access to their code. This should be done, at minimum to review the code for mistakes and/or issues/exploits.
Click here for an example of code accessibility that demonstrates transparency.
DEX’s/DAO’s — all DeFi Dapps — are a collective of users that pool their assets for a specific purpose.
When a project claims to be doing things with their user/member assets — reporting & tracking what is being done with it is very easy using blockchain.
If a project does not provide members (especially a DAO) access to check the treasury vaults/wallets (at minimum) and provide explanations of its use it should immediately raise concern and be perceived as risky.
FATExDAO.io is partially built to help all #yieldfarming users AVOID RISK & help the #DeFi ecosystem grow and reach its fullest potential.
#SushiSwap #VenomDAO #DefiKingdoms #SonicSwapIO #mochiswap #piggybankhrc #lootswapfinance #RainFinance #FuzzFinance — — #Pancakeswap #Uniswap — — any #DAO member is helping lead the way to economic freedom and liquidity.
We encourage you to visit our website: FATExDAO.io
& Read the GreenPaper.
Please join us.
There is work to be done.
