WHY IS DEFI LOSING SO MUCH?
Hello, alts are suffering (see my previous idea), but why is defi suffering even more? Should it not be the FUTURE?
Well, there are basically two reasons.
The first and most obvious one is that, despite other alts, old generation alts, the defi alts experienced an astonishing rise that would have come to an abrupt end anyway. They had to come to more realistic levels.
The second one, that also answers the question "yes, but why are they getting slaughtered?", lies in the rational behind the defi world.
DeFi (as it is now) is lending and borrowing. Mainly lending at astonishing % to people willing to pay huge interests to swap their coins and invest in more profitable coins. Why the hell would someone borrow BAT at 60%? To farm defi coins and to invest in projects that have a 60%+ expected returns. For the game to stay in equilibrium, coins HAVE TO RISE. With the first fall, the whole game crumble down.
It also depends on BTC. With BTC indecision, many are in usdt and btc only, simply not willing to deploy their coins in any way. They just want to stay liquid. We need to wait for a better moment to re enter DeFi
Well, there are basically two reasons.
The first and most obvious one is that, despite other alts, old generation alts, the defi alts experienced an astonishing rise that would have come to an abrupt end anyway. They had to come to more realistic levels.
The second one, that also answers the question "yes, but why are they getting slaughtered?", lies in the rational behind the defi world.
DeFi (as it is now) is lending and borrowing. Mainly lending at astonishing % to people willing to pay huge interests to swap their coins and invest in more profitable coins. Why the hell would someone borrow BAT at 60%? To farm defi coins and to invest in projects that have a 60%+ expected returns. For the game to stay in equilibrium, coins HAVE TO RISE. With the first fall, the whole game crumble down.
It also depends on BTC. With BTC indecision, many are in usdt and btc only, simply not willing to deploy their coins in any way. They just want to stay liquid. We need to wait for a better moment to re enter DeFi
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