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.
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.
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.