If you've been on the sidelines like me, watching the DeFi craze hitting Enron levels of Russian doll style financing, you're probably curious yet cautious (and hungry) wondering what this Uniswap and Sushiswap are all about.
Is anyone else getting hungry?
The TL;DR version
Uniswap and Sushiswap are computer code that run off the Ethereum blockchain and allow for decentralized token swaps.
Uni's logo is actually a unicorn, while sushi's logo is a... sushi?
How it works is that traders exchange their respective Ethereum based tokens in a completely trust-less manner. In essence, anyone can lend their crypto to special reserves known as liquidity pools (this is also related to how DeFi's staking rewards work). In exchange for providing liquidity with your crypto, you earn fees.
Uniswap recently launched its own governance token (UNI) to compete with rival Sushiswap (SUSHI), the latter of which has already managed to draw over $350M into its liquidity pool; and over 13K DeFi users are already claiming ownership of UNI's token. So the DeFi heat is certainly on.
Coinbase Pro has already listed the UNI token just hours after its $1500 airdrop, and Binance.US seems to be following suit shortly.
So is DeFi worth getting into?
Though I firmly believe 95% of DeFi is a veritable buffet of pump and dump ponzi-scheme meme coins at the moment (just look at HOTDOG, which dumped over $4K just minutes after listing!), there are certainly opportunities for quick gains.
It's just raw fish. What could go wrong?
So while I don't recommend holding anything with the word "DeFi" attached to it long-term, there is a case to be made for getting in, making maybe 2-10x, and getting out quickly. The trick is not getting too greedy only to get burned by a dump. In the long run, you're better off investing into projects with a solid roadmap and developing partnerships like VeChain.
But in the short run? DeFi can be a smart coin toss - if you're hungry enough to stomach the risk.