According to SUSHI SWAP SAVIOR Bankman-Fried, DEX volumes are “bullshit”

According to SUSHI SWAP SAVIOR Bankman-Fried, DEX volumes are “bullshit”

By Hippos4ever | HipposR4ever | 26 Oct 2020


If you were active, have been active or at least not been sleeping under a rock in the crypto space for the last 6 months, you have undoubtedly heard of defi, and more specifically a sector of it commonly referred to as “Yield Farming”. In this article, which I found originally on decrypt, Bankman-Fried, the guy who “saved” sushi swap, makes the claim that majority of the volume (liquidity provided as well as swap values and numbers) is “bullshit”. But what does that mean? Bullshit as a word is pretty vague as long as it is not in its literal sense after all.

In this case, bullshit means fake. Fake volumes, fake liquidity values and over all fake products governance tokens. In the article I reference above Bankman-Fried lays out a few reasons he believes the defi space has seen its deflation over the last few months, and it isn’t all ETH fee blame like you might expect. Again, in this article, he expresses his concerns about how the volume being brought to these programs, even now in the deflate, is a highly un reliable metric to judge success, as many people (including DeFi aggregated systems like “YFI”) are shifting volume all the time, too quickly to give any value to most platforms “governance tokens” or even reliability of the platform itself... the second issue he views as a problem... governance tokens, he seemingly takes the stance that the farming of said tokens through providing liquidity is over all detrimental to the crypto space as it creates a false temporary value for a token which ultimately will have no value or use, and is doomed to deflate (in MOST cases), and as I predicted in several previous articles regarding UNI and other various DeFi platforms.

the proof can be seen of Fried’s statements (and my stated opinions) in these other articles that have recently come out showing the success, or more lack there of, when it has come to proposals set fourth by the UNI protocol...

https://decrypt.co/45578/proposal-make-easier-vote-uniswaps-future-fails

https://www.coindesk.com/uniswaps-first-governance-vote-ends-in-ironic-failure

Again not to say “I told you so” but I could see these few things being a foundational problem for defi, specially dex(s) and governance tokens, coming a mile a way. Sure that most seasoned investors could.

Some of you might be wondering how did the DeFi space, crypto community... myself(?) get into this mess... well... don’t blame yourself, the platforms make it easy to be appealed, showing you very high, and unrealistic APY, while the APY is ANNUAL (yearly) metric they are basing the interest show given to you (yearly) with only a few weeks of data collection on volumes VS exchange & live liquidity to back their claims. And to a further point, they appealed to what is a crypto users (arguably) GREATEST weakness...

ab7beb7765c9304723cd655ac9d1e84d62eda3eb512e71dd0c0825c10af5bbea.jpeg
!!!MEMES!!!
e4bda76f4a1e5ac9bec7844c82afedc583587439ebf65fed1a5785f1cbbbac50.jpeg
!!!SO MANY MEMES!!!
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!!!SO MANY MEMES ABOUT LIQUIDITY, YOU PROBABLY GOT TIRED OF SEEING THEM!!!

153b0c52b73c1d6f72a87ed672029732ce14b293c879665b83552fa09c412fa4.pngSo was all of it for nothing?...

the rush to provide ever shifting liquidity, collect all types of governance tokens and all of them on top of that, all the memes... was it all for naught?...

well, I like to argue that nothing is for nothing. While the defi space may have started on some unstable ground attempting to be solidified with funny images implying immense amount of wealth to be gained or earned I DO think that we can find some stable ground in the future. Decentralized finance be it lending or exchange does and will have a future. Perhaps main stream, perhaps always to be bound in the crypto space. But only time will tell in which direction we will head, for now I guess we must all try our best to stay together and united in a vision for a decentralized future and wait to see what happens as we work together to make that happen until we can finally see how it plays out!

 

As always wishing you the best with your crypto vestments, and always open to hearing comments or concerns!

 

❤️2My0xFAM! -🦛


Hippos4ever
Hippos4ever

I am a hippo and weigh quite a bit


HipposR4ever
HipposR4ever

I will talk about (crypto) things that interest me, and I will try to make it as informative as possible. If it seems like a rant, it may be in some aspects, but I will try to make it a informative one.

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