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Daily DeFi Thoughts, 2020-08-11: Liquidity mining, in its current form, is stupid. It artificially inflates metrics. Maybe it was good for marketing but don't drink your own cool-aid: citing TVL is like citing fake exchanges' fake volume. $50m in real VL >>> $500m in fake VL.

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SBF

@SBF_FTX

Aug 10, 2020

Daily DeFi Thoughts, 2020-08-10: The proof is in the pudding. How do you know that the ETH network is valuable? The top 13 DeFi tokens are ERC20s. coingecko.com/en/defi How do you know @solana really is fast? Send 5x ETH network capacity yourself: break.solana.com/setup?cluster=

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and

As if you didn't know it's used to bootstrap liquidity, a lot of which will remain after mining ends. It's kind of like the gimmicks you use to attract users at your CEX except in DeFi's case the rewards are real.

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salty much?

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and

Not at all, I'm just a bit tired of your subtle digs against DeFi every other day.

SBF

@SBF_FTX

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@Bcdrdi

Fair :) FWIW I think there's a pretty big difference between FTX's incentives and some of DeFi's -- mainly one of quantity. Small-ish ones are totally fine to drive adoption! Huge ones drive unsustainable adoption. I'm super happy with DeFi 5% yield; 50% is a lot.

11:10 PM · Aug 10, 2020Twitter Web App

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and

Don't worry about it being a lot, you don't have to use it. Actually, you're not allowed.. at

@BalancerLabs

, and

@compoundfinance

turned down your attempt to farm your bitcoin there ;)

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and

Brutal!!!!! But yeah, I do think it's +EV for people to liquidity mine right now -- not debating that! (Well at least in some places.) But the $ are coming from valuation money, and unless the projects back it up with awesome products it'll crash and burn at some point.

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