The Pros and Cons of DeFi
When the DeFi Hype was real I got involved into it and there are so many different sidechains protocols or things where we can earn yield, interest or make Good Money out of our investments in DeFi space.
For Now this bear market effect has drown DeFi Total value locked (TVL) from above $150 billion to only around $55b in DeFi TVL which is at it's all time low after all this Hype.
After 1 Year of being involved in DeFi protocols I have seen Many pro's and cons.
Before moving towards the Pros and Cons let me explain what is DeFi in simple words.
What is DeFi?
DeFi stands for Decentralized (De) Finance (Fi). It is in existence since the 2018 and the mainly purpose of DeFi was making a decentralized Finance ecosystem where people can build different kind of protocols on Smart contracts without any troubles.The Pro's of DeFi
DeFi is a huge space where it offers many Good things to investors. Some of pro's I came across after trying multiple protocols of DeFi are something worthy.
1. DeFi Doesn't need KYC or Key's of Asset's belongs to owner
Mostly Big Money is in DeFi space because of it doesn't require of KYC.
Everyone is free to Build on DeFi and can hold their Assets safely in their own wallet where key's belong to the owner.
2. DeFi Governance and Proposals
Every protocol on any DeFi Smart chain or smart contract have a Governance or through proposals it gives right to the community to decide what they want.
From Listing a token in DeFi, High yields or APR farms for a token their are protocols which will decide every matter through Governance.
3. Many Dapps or Protocols offers High Yield in DeFi
DeFi have so many Dapps it has Decentralized Exchanges (Dex) where we can Trade tokens built on Smart contracts of Blockchain i.e; PolyGon, BSC and Dex like CubFinance.io and Pancakeswap.
Other than Trading Dex offers Farms or Pools where we can Farm on high yield by providing liquidity and also by just staking in the Pool to earn the x token of Dex i.e; Farming in CubFinance farm to earn xCub.
People fear Impermanent loses in DeFi but than Leofinance - CubFinance came up with Stablecoins Pair farms which is more like the Insane APR on Stablecoin Pair BHBD-BUSD Farm on CubFinance for me and many.
Some other pro's of DeFi
I have seen many DAO's or NFT protocols in DeFi from where people have made tons of money even though in my DeFi journey I have sold many NFTs on different marketplaces and sidechains.From this I realized DeFi offers a lot of benefits to Developers of Blockchains who build Protocols whether it's an NFT protocol, a marketplace or a Dex etc.
Even there's many Play 2 Earn Games in DeFi on different sidechains lowest or high fees, POS or EVM these are all things Comes under DeFi and creates a Good whole lot of opportunities for investors.
The Cons of DeFi
Everything have it's own pro's or cons and so far the biggest cons of DeFi in my perspective is Many Rug Pulls or Ponzi's schemes.
I have seen tons of Rug pulls happening in DeFi like people launching Dex or tokens and any protocols just to run away with the all liquidity people have provided.
Even though at some point Certik Audits doesn't help much in DeFi.
And so only Ponzi schemes and Rug pulls (scams) is the only thing that troubles many investors.
My DeFi Journey
I've been into DeFi more than a Year now and in this tenure i had been involved into many DeFi protocols as a investor only.
Mostly into Farms or NFTs and also tried Tokens but sold in loss/profits.
This bear market hit me so hard and I had made a mind of not doing anything in DeFi or also no other choice except to take my ass out of DeFi but then I came to know about the CubFinance Stablecoin farm so I'm now into that and ain't worried at all just sticking to CubFinance or Leo and Hive Ecosystem.
Fin.
In the End DeFi is something Good where one can have freedom to build Dapps and it creates many more opportunities for people which is always something we need more in Crypto space.
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