The cryptocurrency market is a strange place. It’s the only ecosystem where assets that run on a meme can turn into a multi-billion dollar industry. Because of their high potential for profit, we see all kinds of people join in. And many of them are just trying to make a quick buck. It’s also an environment of sound projects, that have brought people incredible technological advances. Blockchain technology and the protocols that are running on it are setting a new paradigm through the decentralization of almost any industry known to man.
One major advancement that unraveled before our eyes are the decentralized finance (DeFi) market. This new financial ecosystem provided individuals all over the world with access to advanced financial instruments. Moreover, it helped the unbanked finally participate in the internet economy.
However, DeFi is not without its shortcomings. It remains largely unintuitive for the mainstream population and has encountered major drawbacks regarding liquidity. It’s this latter weakness that intrigues us in this article. Some major actors in the DeFi ecosystem tried to overcome the liquidity problem by releasing a mechanism that allows protocols to own their liquidity.
Continue reading Crash of the High Yield DAOs – Was It a Scam All Along?
