47: 06 Did not quite get the explanation about how lending works. Ok you put crypto in and others borrow and pay interest that gets shared among lenders. Anonymous borrowers can’t just bail and run with the money because they have to deposit value that equals or is greater than what they borrow. That’s what he said, but he never touched on a critical point… Why would they borrow the money and pay interest if they already have that amount and have to lock it up to get the money? Because they also get paid interest on that locked amount? So its essentially turns into a ponzi/pyramid scheme where interest is paid by new users?
Regarding YFI: Why are people piling into this coin?? The founder himself pointed out that the coin is fundamentally worthless. The only benefit is the possibility of paying a future dividend and having some say in the governance, but the coin itself cannot be worth more than a few dollars at best!
Hahaha has Chris blec on. Chris wouldn’t know defi if it slapped him in the face
47: 06 Did not quite get the explanation about how lending works. Ok you put crypto in and others borrow and pay interest that gets shared among lenders. Anonymous borrowers can’t just bail and run with the money because they have to deposit value that equals or is greater than what they borrow. That’s what he said, but he never touched on a critical point… Why would they borrow the money and pay interest if they already have that amount and have to lock it up to get the money? Because they also get paid interest on that locked amount? So its essentially turns into a ponzi/pyramid scheme where interest is paid by new users?
Thanks for making this! Great educational content, and awesome to see how the space is growing up!
Regarding YFI: Why are people piling into this coin?? The founder himself pointed out that the coin is fundamentally worthless. The only benefit is the possibility of paying a future dividend and having some say in the governance, but the coin itself cannot be worth more than a few dollars at best!
Excellent rational advice…. Thanks guys..
Excellent defi discussion guy’s.
Thank you from England UK