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22 September 2020

Defi Boom: Bubble Fears Grow as 'Toxic' Community Disagrees on Way Forward | Featured Bitcoin News

Defi Boom: Bubble Fears Grow as 'Toxic' Community Disagrees on Way Forward | Featured Bitcoin News


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Waves blockchain creator Sasha Ivanov kicked things after depicting current defi ecosystem as Ponzi 2.0 and not the much talked about finance 2.0.

Sam Bankman-Fried (SBF), the current leader of Sushiswap, expresses fears that yield farming food tokens are in fact propagating the decentralized finance (defi) bubble, while the Yearn Finance creator, Andre Cronje believes liquidity fragmentation to be one of the contributing factors to challenges facing defi.

In his tweets, Ivanov, who insists that Finance 2.0 “will still come anyway”, also suggests AMM is not the solution.

Still, despite the differences, both Ivanov and Cronje still share a common view that the defi space is being overrun by bad actors?

In an earlier tweet, Cronje complained that the Sushiswap controversy had made “defi a joke again.” This was after Chef Nomi, the anonymous creator of Sushiswap said he had returned funds that he seized in the previous week.

The tweet by Cronje may have prompted Bankman-Fried, the current leader of Sushiswap, to post his own thread in which he criticizes yield farming food coins.

Bankman-Fried tries to make a case for certain coins that he claims to “have obvious utility.” And just like Ivanov, the Sushiswap co-founder gives his list of “important products that people use even ignoring (yield) farming.” These include Compound Finance, Aave and Balancer.

Predictably, the Sushiswap cofounder tears into YFI’s value, which is he says is “a weird case.” He argues that “right now (YFI) mostly just about farming, but it’s also the king of farming, the meta-farming coin, and so it kinda makes sense that it should get a decent piece of that pie.” At the time of writing, YFI was trading at $39,500.

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