Could this project destroy YFI? – Toshify
DeFi added $ 300 million with YFI tokens
DeFi market is growing too fast
Experts suspect the DeFi industry is a bubble
Hackers Already Hacked Several DeFi Protocols
International consortium of news organizations developing transparency standards.
The market for decentralized finance is growing rapidly. Over the past two weeks, the industry has grown by another $ 1 billion, and the Curve.fi protocol added more than $ 300 million after the purchase of the YFI token.
Curve becomes the DeFi market leader
Decentralized finance project Curve became the market leader by adding $ 266 million to its locked wallets. This makes the protocol the most popular in terms of the total value of blocked tokens. The inflow of funds into the protocol was associated with the launch of the corporate token YFI.
Almost immediately after the launch of the token into circulation, the company received millions of dollars through its sale. Many experts call this explosive growth of DeFiDecentralized finance (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient and … More insanity and believe that it could be a “bubble” that is about to burst.
In the meantime, the Curve project is developing rapidly. The project facilitates the exchange of stablecoins between protocol users, and also distributes unused pooled liquidity between other DeFi protocols such as Compound and yEarn.finance, which provide constant interest income for liquidity deposits.
DeFi will fall victim to its popularity
This opinion is shared by many experts. The DeFi market is growing too fast, increasing its assets. Over the past two years, the decentralized finance market has grown by only $ 1 billion a year. However, 2020 was an explosive year for the industry. In a few weeks, market capitalization increased by another $ 1 billion. Many believe that the trigger was the launch of the Compound protocol and the Comb token, which in just a few days increased in value by 50%.
However, as the experts themselves assure, one should not rejoice at such growth. A rapid expansion of the market could result in an equally massive collapse. Waves Association founder Alexander Ivanov compares the rise of DeFi to the ICO craze seen a few years ago. According to the expert, the DeFi market could collapse as quickly as the ICO sphere, leaving investors with millions of losses. .
In addition, in pursuit of super profits, protocol developers do not pay enough attention to project security. Since the beginning of the year, several protocols have already been hacked. Earlier, BeInCrypto reported that the 1inch decentralized cryptocurrency exchange based on Ethereum was attacked by hackers. Criminals managed to withdraw $ 500 million worth of crypto coins.
Lendf, one of two protocols supported by the dForce Foundation, also fell victim to cybercriminals. Criminals withdrew 99% of the contents of wallets.
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