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June 26, 2023, 6:56 a.m. EDT | 1 minute read
After once again criticizing yield farming and looking for a “least popular DeFi project,” Ethereum (ETH) co-founder Vitalik Buterin revealed his own vision for a new decentralized finance (DeFi) project.
Vitalik Buterin. Source: a video screenshot.
This time it's about the Fork Maker (MKR).
“All I want [DeFi] is that someone forks the maker, rips out the governance and replaces it with automated interest rate targeting that rips out [Dai Savings Rate] and just let the token itself target “index * (1 + interest rate)**time” and generalize it to a whole range of price indices,” Buterin tweeted.
The idea was picked up by other members of the cryptoverse saying that this idea could soon become a reality.
However, Buterin's previous attempt is to “ask anyone who normally sees themselves as… [DeFi] Enthusiast” about their “least popular DeFi project” received more criticism.
Scalar Capital’s Linda Xie said these types of questions “can potentially be daunting for teams working on Ethereum.” “Maybe we can focus on ways to improve existing popular DeFi projects or something along those lines,” Xie added.
Additionally, Buterin yesterday reiterated his criticism of yield farming projects that promise unusually high returns, suggesting that printing central bank money is nothing compared to the minting of tokens needed to sustain the DeFi boom:
“Seriously, the sheer volume of coins that have to be printed non-stop to pay liquidity providers in these 50-100% yield per year farming systems makes the major national central banks look like they are all controlled by them [former presidential candidate in the US] Ron Paul,” Buterin said sarcastically. Paul criticizes the Federal Reserve for “creating trillions of new dollars out of thin air” and claims that “a return to sound money is an absolute necessity and only a matter of time.”
Meanwhile, Buterin said in July that he had a bit of “love and hate” for the influx of DeFi apps, adding that the high interest rates charged by some liquidity providers would prove “unsustainable in the long term.”
Today, the total value locked in DeFi exceeds $9 billion.
Source: defipulse.com
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