The ecosystem is overrun by early DeFi releases with many flaws: because the technology is new, because the chains they work with have flaws, and because people are greedy and see an opportunity to make a lot of money very quickly by increasing product launches. without worrying about those who pay for their income. We can do better.

Just as the ICO boom in 2017 sparked great interest in the crypto market, DeFi will have a lot of focus on our industry. But we must remember that the cost of the increase in 2017 and the ICO was the ultimate loss of public interest and a long winter for cryptocurrencies that followed when the vast majority of these projects failed to deliver on their promises. Instead of rapid projects that do not conform to stated ideals, we should focus more on the public interest in sustainable elements of DeFi and keep our promises. Few of them make it this far, but we as an industry can keep our promises with DeFi.

DeFi fans often point out how damaged today’s banking and financial systems are. This is true, but they forget the most obvious flaws in their systems. DeFi takes advantage of democratic opportunities to make money and gives freedom from circumvention, while at the same time fighting to deprive ordinary people of profitable investment opportunities and imbalances in information that makes it difficult for the little man. These are high ideals that must be realized, but at the moment this is not what DeFi products offer us.

So far, DeFi has given us:

Developers build billions of dollars from systems they do not use.
Developers are flooding their communities with early money.
Liquidity providers pull the ground out of the system.
FOMOing Lovers have earned on endless currencies.
Control characters that do not control, but only serve as a reward.
A poll, which is nothing more than a poll that project developers can decide to conduct – or not.
Large packages of tokens that were previously mined by the founders at the expense of society.
DeFi platforms that do not purposefully motivate more stakeholders.
DeFi platforms are built on smart contract platforms with fees so high that only the best traders can hope to win.
The cryptocurrency community can be more demanding by supporting projects that truly live up to their benefits. This requires more critical thinking and a set of clear guidelines that serve as minimum requirements for an investment project. The price for an emerging DeFi industry that does not meet such a set of requirements is that DeFi projects will follow ever-shrinking cycles for fork, launch, mining and unloading until it becomes clear that these projects have no future. At this stage, we will most likely see that public interest in blockchain and cryptocurrency declines again to real value appearing in the future cycle, rather than enrichment schemes at the expense of others.

Simple rules for DeFi projects
It is a simple set of guidelines that we must require before participating in any DeFi project. In short, the project must actually comply with the intended principles of what makes DeFi better than existing systems.

First, the founders must be publicly identified and have some experience in the blockchain industry. When the “developers” behind a project are not identified, the personal costs of exit fraud become incredibly low. Only when people put names and reputations in line with these projects can they gain trust.

Second, each important member of the ecosystem should be rewarded in relation to the contribution. It may seem intuitive that if a system depends on the work of a particular group, it should be rewarded according to its importance. Projects that depend on a prize oracle, traders, influencers or other ecosystem members who are wanted but not rewarded, place these groups in a position that limits or hinders the project’s long-term success.

Third, there should be no previous funds for deposits or development that can be stolen. Launching before mining was a popular way to reward project founders, as well as a popular way to get rid of tokens and spend money on other people’s accounts. Instead, it is better to earn royalties for developers as the project progresses.

Fourth, the judge must be taken more seriously. Any government currency must be liberalized for a limited period. Control coins must be issued using a well-defined symbolic issuance schedule over a reasonable period.

Source: CoinTelegraph