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Yieldra Protocol
Yieldra Protocol@YieldraProtocol·
This really goes to show how fickle trust is in DeFi, even when information is available on chain, contagion may still exists. This is likely due to either a distrust of this info, concern for changing circumstances, or simply users not understanding how to access this info. Users in all markets often prefer certainty over uncertainty, even when the expected value of uncertainty can be greater and web3/DeFi is no exception. Education about DeFi products, and trust in the code is the only way to bridge this gap moving forward!
cryptoeater | Yieldra Protocol@_cryptoeater

Recent contagion from the @KelpDAO exploit has spread across the DeFi ecosystem, with @VenusProtocol's Flux currently being hit with bank run level withdrawals. USDT on Venus Flux is now at 100% utilization with nearly $40million USDT locked as users are unable to withdraw. However, for users who are stuck, or even choose to deposit now, a nice 23.4% APR is up for grabs. As a user with funds stuck in Venus Flux, I did an investigation as to what collateral this USDT pool actually has, and there doesn't appear to be any bad debt or issues with the pool itself. The USDT is mainly overcollateralized by @maplefinance's SyrupUSDT, which to my understanding has not been affected by the recent exploit. (Please DYOR if you choose to deposit) Due to the recent exploit, people are exiting DeFi in the short term as confidence wanes. I saw a few users withdraw their USDT from Venus Flux and deposit straight to Binance. However, over the next few months confidence will likely return, and for those of us who believe in DeFi, we can enjoy higher than normal APRs while this contagion persists. If you do choose to chase high APRs, just understand that your funds may not be withdrawable for an unforeseen amount of time as panic may get worse across DeFi. This is why I decided not to ape the rest of my USDT in as I already have some stuck in there, despite believing there is nothing fundamentally wrong with the pool itself. Personally, I don't see this situation lasting more than a few days as borrowers will eventually close their positions due to high interest rates. However, due to the low peak interest on Venus Flux (operated by @0xfluid), liquidation may take months so we rely on users manually closing positions for now.

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Tutorial
Tutorial@tutorialtoken·
@YieldraProtocol We agree education is the only way for users both retail and institutional to truly trust DeFi. Simultaneously, we need DeFi protocols to emphasize security and risk management much more to earn the trust of users.
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Sherry Banks
Sherry Banks@segetayoo3·
@tutorialtoken @YieldraProtocol Trust in DeFi is fragile, even with transparent on-chain information, possibly due to skepticism, changing circumstances, or lack of understanding
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