Learning about DeFi

2 months ago
3 Min Read
588 Words

Similar to a product that is in the consolidation phase of its lifecycle, I am also in a consolidation mode for quite some time. I am reading as much as I can on the latest crypto developments and gathering relevant information so that I can make informed choices/decisions as a member of the crypto community. And, LeoFinance has been a great source of information among many other podcasts, blogs and newsletters.

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Source- Coingecko

Who does not want to know more about DeFi these days? Especially after what's happening in the sector with Suhiswap and Uniswap and the price boom that we are experiencing. But, I have this intrinsic fear or question about the DefI governance mechanism.

I feel the Defi space is a wild west nation without a proper governance mechanism and showing potential that it remains like this for a longer period of time. Some may argue that the whole existence of Defi is to eradicate central governance and by forcing governance mechanisms we may destroy the evolution of this sector. But, I firmly believe that some form of governance/monitoring is required.

The non-governance scenario may generate two results - 1/ It may defame the whole sector ultimately giving a bad name to crypto as a scammers' heaven like it is happening to ETH at the moment OR 2/ it matures and evolves into a space that truly represents the idea of decentralization and financial freedom. Having said that, the recent developments in DeFi have raised more questions that provided answers.

Defi projects are definitely a new form of money spinning machines with the trading volumes eclipsing established traditional trading platforms like coinbase pro. There is nothing wrong in diving in and making profits out of this huge pool of money being invested. I see the launching of wLEO a timely initiative. If done right, it could make Leo Whales billionaires overnight :) and could possibly attract new investors.

But, the Leofinance team may want to ensure how they would retain these new investors. Not sure how much those new investors will be keen in developing and advancing the leofinance platform further. I guess, the flock of these new investors are looking to make profit from the token price swing.Hope the LeoFinance leadership team is already aware of this and are pondering how to manage the situation.

@khaleelkazi must find it interesting that I actually listened to the podcast live on periscope (full length) :P and it was fun to go through the uniswap UI and listen to the Leofinance team discuss the gamut of relevant issues. Thanks for that.

The Community Effect

After the podcast, I was pondering how much the community behind the Leo token and the blog interface will be important going forward. The Leo token is based on/integrated to the Leofinance platform and the growth of Leo community and user base will have positive influence on the whole project.

Token value may skyrocket with all these new initiatives but the project team does not want to forget the fundamentals and basics that are linked to the platform. Hope more users are here on the platform to generate more traffic and ad revenue and help Leotoken achieve what it is striving to achieve.

*P.S. I am not an expert. My blog posts reflect my learning process and the issues that I am after. I am a random dad, policy person trying to understand the new crypto space and associated nitty gritties.

Posted Using LeoFinance Beta