Hacker News new | past | comments | ask | show | jobs | submit login

Imagine being a billionaire because you convinced enough people to give you money in exchange for a promise.



Pretty sure this is exactly how most startups get funded.


And this is HN. Imagine how the rest of the world thinks.


Fundraising as we know it will be replaced by coin offerings soon.

Just consulted on a project that was able to raise $20m on their own through a yield farm and is using it to build out their product team and do tons of marketing.

Defi is the future, anyone who doesn’t see that is being willfully ignorant.


Well, some people will get rich. Many will lose a lot of money.


Yeah, that’s called capitalism.


It's the worst parts of capitalism if you have people getting rich by taking advantage of others.


I love how these conversations always come up in relation to defi/crypto.

I don’t know what world you live in, but it’s like you guys believe there is some kind of ethics or moral high ground in sneering at something you barely understand.


I'm saying if your plan to get rich is to scam people you're just a jerk.


>>>Just consulted on a project that was able to raise $20m on their own through a yield farm

Jeez. Over how long of a timeframe, and how much did they start farming with?


They launched the token and farm, it was their fundraising mechanism for the project and it is still ongoing.

Its for a game with play-to-earn mechanics, still early phase but they just made a ton of big hires.


Congrats you've reinvented ponzi schemes


Oh my, never heard that one before.

People’s willingness to speak confidently from a position of ignorance always surprises me.


> raise $20m on their own through a yield farm

What is a yield farm and how is is structured?


That’s a very googleable question, but in a nutshell it is a series of smart contracts that reward token holders for holding a staking a token.

It incentivizes investors to buy and hold instead attempting to trade the asset and create unwanted volatility.

It can also raise funds through a small fee structure that can be applied on deposit of non-native token pools.


OK, so it's a shadow bank: lend long, into other people's short term borrowing.

So it must have extremely high interest rates? Which raises the question, who's borrowing all this and how's it collateralized?


I think you are starting with an incorrect assumption and trying to work your way backwards from it.

If you want more mature examples of this structure in the wild I would start with pancakeswap ($4b market cap) and apeswap ($500m market cap).


And how brick-and-mortar banks operate.


Then there is civil asset forfeiture.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: