Follow up

More DeFi news – Curve premature launch

Here is another post around the DeFi phenomenon, this time in regards to the Curve project. Curve claims itself to be a decentralized exchange pool that is built on Ethereum. They also claim that their fees are only .04% of any trade of stablecoins.

The contracts were posted to Github before the CurveDAO was launched, so an anonymous user went ahead and deployed the token and contracts on the Ethereum mainnet.

The Curve team reviewed the code, determined everything was legit and just went ahead and accepted that the protocol was live and they couldn’t do anything about it.

Users quickly noted that wallets had already started staking and earning Curve tokens. Users also noted that it was unfair.

I’ve shared my opinions on DeFi in general on the show. I think the technology is incredible – and this particular case shows even further what is so appealing about it. It is almost completely unregulated, and has a low barrier to entry. Almost anyone can join a DeFi protocol and has a shot at earning. However the immaturity of the technology also makes it dangerous for people not in the know, and also makes it easy for users that are more advanced to milk the system and leave the uninitiated holding the bag. Until there is more maturity in the DeFi space, and until some DAO’s breakout as the leaders, I am going to continue to watch from the sidelines. Bitcoin is boring compared to all of these DAOs, but I know what the rules are, and those rules apply to everybody.

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