Cryptocurrencies

Setbacks of Curve and YFValue, errors of Youth or Chronicle of an announced disaster? – Cryptocurrencies

Rationality, you say? DeFi is exploding and, not to everyone’s taste. When a DeFi token allows itself to exceed Bitcoin (BTC), one can either applaud the achievement and follow the crowd’s movement, or ask the questions that disturb.


The heart has its reasons, which DeFi adores

DeFi is the fashion of the moment for many cryptophiles who rush into it, some with the impression of being in the shoes of a great modern-day financier.

This craze has pushed Vitalik Buterin to take action on Twitter and call on users to exercise good judgment in their investments.

One of the most telling examples of this frenzy is the token YFI of yearn.finance whose value recently exceeded that of Bitcoin, hitting an ATH of $ 12,800.

The progression of YFI is obviously linked to that of DeFi but also to the recent launch of the new product yinsure.finance, a launch that allowed YFI to win the hearts of many investors.

Observers agree that the insurance industry could very well become the next promising market for DeFi.

The DeFi of governance without trust

But DeFi isn’t all about success stories – ephemeral as they are, the future being uncertain.

Some players are simply in trouble today. 2 protocols are currently in the limelight following revelations indicating governance problems: the first is the third DeFi protocol on the market, Curve Finance ; the second is the protocol YFValue whose launch had taken place a few weeks earlier.

The founder of Curve Finance, Michael Egorov, would currently control 3/4 of the protocol’s voting rights, in an attempt to halt the progress of Yearn Finance who held 58% of those votes.

As for YFValue, a native bug would have been identified on the application: this anomaly would have allowed the founders to keep indefinitely the blocked funds that users reserved for staking. A similar bug was previously identified on the protocol Yam Finance. With respect to YFV, the team quickly stepped in to make a series of corrective decisions, claiming in good faith. A simple heat stroke, then, but which leaves a funny aftertaste when it comes to the credibility of a sector that still has everything to prove.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Is DeFi just another bubble that will eventually explode? DeFi projects that will be sustainable and successful over the long term are those that have real utility for their users, and not that turn out to be mere speculation devices hidden behind a jumble of pseudo technicality. The siren song promising rapid enrichment is unfortunately far more powerful than any anti-scam alerts sent by the brain.

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