Are the next steps for DeFi dangerous or taking time?

After more than a year of development, the financial pole now has a multi-star project, at the same time the sector has more jobs and income. When DeFi first kicked off last year, we couldn't have predicted how quickly that would change. After all, it's only been three years since the Internet financial bubble burst. Are our memories bad? Essentially, online finance and financial markets are the same person, but in different places and circumstances. There are new developments that keep pace with improvements over time, but the risk is always there. Therefore, we still have to change our minds and not play the rich nights.

Whether it is the financial industry or the blockchain industry, DeFi is the most innovative development. While Leak is unhappy with the value of the virtual assets it has in its hands, DeFi is bringing virtual assets to use for the first time. With challenge, you can borrow cryptocurrencies from Aave Short Sale and earn interest, which you can use to do mining business on Uniswap to earn a coin platform. The emergence of DeFi later promised that the mining industry would give insurers the mindset they would never sell outside of their faith.

Due to the explosive development of the first stage of the challenge, many project stakeholders run away or are compromised by hackers due to their level of insecurity, sometimes putting their money at risk. In theory, DEFI mining is a great way to generate stable profits. We only need to lend our virtual assets to various DeFi smart contracts to enjoy high APY. But the risk and the reward are twin brothers that go hand in hand. According to data from Messari, DeFi's total loss exceeded US $ 500 million. Some of you might be reading this.

After a simple and clear installation, there are always people missing in this place, how should we look at the new project? First of all, I think you need a general understanding. In the bull market, existing and new users will enter the market with a lot of extra cash, while also being hit with lots of coin scraps, trash, and waste plans. Temptingly, the advent of DeFi brought more liquidity to the currency cycle. Regular high liquidity indicates high demand and always determines the value of the currency. The higher the currency value of the platform, the higher the mining reward. , more mining costs means more miners More miners means more demand for cryptocurrency, more demand for cryptocurrency means more market value. It's like a ladder, which goes up and down as you go down. The point is that new users enter the market with new money, which increases the value of the currency.

The risk that DeFi poses to the entire cryptocurrency market has resulted in side-and-sell, which continues to lead to high sales in the market. In the bear market, fair income is low and earnings are low. However, mining rewards from the DeFi platform and new "aircoins" will continue to enter the market, absorbing capital and financial resources from a vampire-like market. The profitable trader will use the “buy and sell” strategy to achieve a stable average delta return when the market is unchanged. We cover the exchange of the beneficiary partner first, then we join the mining industry and sell the mining gifts daily when there is a gift. Remove the reduced chair. This is undoubtedly bad for the entire cryptocurrency market. When the mining and trading industries are in demand, the demand for the protection of minors leads to increased sales for the future market and persistent lower prices. Greatly reduces user demand for upgrade, which reduces loans. lending platform. At present, the costs of closing and holding the DeFi platform have also been reduced, affecting the core currency of the DeFi platform and increasing the frequency of digging and selling.

In addition to the low volume that the concept of 'break and sell' brought to the market, exchanges also led to new MLM coins and more Aircoins. DEX allows anyone to issue coins and offer new cryptocurrency trading partners, hurting the long-term growth of the blockchain and currency markets, especially in the bear market. These weather coins can drive up prices in the short term with a high degree of control and create a "separation path", but when sufficient wave capacity is increased, the plans party can place a coin in the room. Absorb cash in DEX cash pools or escape by stealing users' money under the pretext of "hacking". Neglected and overlooked, but if new users are losing money on an MLM zero coin mining project, that's not what people want to see.

To solve this problem, I have listed some of the most common personal experiences for assessing the risks of DeFi operations. Hope this helps everyone.

1. Public channels available: Each public channel has its own strengths and weaknesses, which can be reached like the triangle cannot. Unless the iron triangle issue is resolved, it will affect the functions of the DeFi ecosystem. Until now, it was considered the most secure blockchain network due to Ethereum's security and its large ecosystem. The development team of another blockchain network has little experience and their policies have not stood the test of time. In the past, BSC has been more aggressive than Ethereum.

2. Team and Entrepreneur Details: Plans started by real members and invested by VCs are generally safer than anonymous groups that have no previous VC Invest experience.

3: Code audit: Projects that meet company audit policies are often hijacked. It is better to have at least one inspection, and the reputation of the inspection company is also very important. However, passing the passcode does not mean being completely secure. You can see the list of DEFI hacking and auditing companies listed by rekt.

4: Source Code: In theory, analyzing the source code can reveal almost 100% of your risk.

Fifth, maintain the owner's contract. If the owner has no restrictions, that's a red flag for the trader.

Finally, to reiterate, many organizations or financial institutions will enter this cycle unless business development or irrigation for future shutdowns comes to a halt. How to get cookies is the only question we should be asking ourselves. Don't worry, don't think, it's all yours You have to think with ideas and actions and do it with the big picture