Conversation

SBF
@SBF_FTX
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.
Quote Tweet
SBF
@SBF_FTX
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=
Image
Image
5
52
Bcdrdi
@Bcdrdi
Replying to
@SBF_FTX
and
@SBF_Alameda
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.
2
3
SBF
@SBF_FTX
Replying to
@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.
1
2
Bcdrdi
@Bcdrdi
Replying to
@SBF_FTX
@SBF_Alameda
and 2 others
Sure, some might crash and burn but that's how evolution works. The best DeFi projects will survive, thrive, revolutionize finance and the world and eat centralized finance's lunch someday not too far from today :)
1
1
Show replies