On: The explosion in stablecoins revives a debate arou...

[diveanon]

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.

[_clhx → diveanon]

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

[diveanon → _clhx]

Yeah, that’s called capitalism.

[_clhx → diveanon]

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

[diveanon → _clhx]

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.

[_clhx → diveanon]

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

[post_from_work → diveanon]

>>>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?

[diveanon → post_from_work]

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.

[wittycardio → diveanon]

Congrats you've reinvented ponzi schemes

[diveanon → wittycardio]

Oh my, never heard that one before.

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

[pjc50 → diveanon]

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

What is a yield farm and how is is structured?

[diveanon → pjc50]

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.

[pjc50 → diveanon]

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?

[diveanon → pjc50]

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).