Ethereum's Vitalik Buterin Criticizes DeFi: 'Exciting Stuff But Short Term'

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Thu, 07/02/2020 - 10:59
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Vladislav Sopov
The ongoing insane run of DeFi assets has already generated solid hype around this segment. It appears that not all Ethereans are happy about it
Ethereum's Vitalik Buterin Criticizes DeFi: 'Exciting Stuff But Short Term'
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The father of Ethereum (ETH) claims that the euphoria around DeFi may deflect attention from building valuable instruments for the long run.

'Yield farming' instead of a new social organization

Vitalik ironically commented on the 'yield farming' motto of DeFi users, which means earning a high profit on various decentralized lending and borrowing schemes. He claims that this unsophisticated concept is much more attractive for the majority of people than ground-breaking smart contracts use-cases.

Vitalik Buterin mocks 'yield farming'
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Moreover, he denies the idea that decentralized financial applications may guarantee more profitable annual yield rates than classic financial instruments. However, he appreciates the most boring parts of DeFi constructions, i.e. worldwide access to a strong crypto-dollar that isn't subject to deflation due to the yield mechanism.

Vitalik Buterin also mentioned the areas of the decentralized system that look attractive to him. He admitted that he still appreciates DAOs, DAICOs and prediction markets.

The most valuable real-world use-cases for decentralized instruments are smart contract wallets, privacy technologies and public goods funding schemes, according to Mr. Buterin.

Community disagrees

Some 'yield farmers' started defending their segment from the Ethereum (ETH) co-founder's criticism. Eric Conner, a podcaster and Ethereum (ETH) core developer claimed that this new scheme isn't so different from familiar investment mechanisms, while its motto is nothing but a memetic label.

Anthony Sassano, an EthHub co-founder, outlined that this euphoria could get people interested in other valuable things on Ethereum (ETH).

Analyst Adam Cochran highlighted the role of early DeFis as a sandbox environment for future products:

Flashy short-term things help us test long term features, but also attract new thinkers, builders, users and explorers to the space.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)