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Egwinsi

(64 posts)
1. DeFi is an illusion
Tue Mar 18, 2025, 08:51 AM
Mar 18

I actively participated in the crypto space since 2017 up until around 2022-2023, and in that time I've been able to learn about these pitfalls through experience and repetition.

Running and contributing to a few of these projects, most of them being NFT / DeFi related, the main issue with "liquidity" is not a bug, it's a feature. The feature being too little or too much liquidity.

There are many examples I can lay out, whether it be the tokenomics of Ethereum's Olympus or the Solana equivalent Invictus. Or you could point to the pump.fun tokenized culture of ultra-low liquidity token startup projects that rug within the hour.

The irresponsible nature of Decentralized Finance in its current iteration is intentional, with the goal being liquidation in most cases. Whether it be cross-margin DeFi across multiple assets used as collateral, which has its own vulnerabilities, or overnight pump and dumps to collect LP fees, it's an ecosystem designed to con the participants of the trade.

I'd be happy to talk more about the examples or experiences I have in this space, it's the Wild West out there.

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