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Guide to avoid being scammed in crypto

r/CryptoCurrencySee Post

Hello to all the new users of r/CryptoCurrency

r/CryptoCurrencySee Post

I'd like to share about Influence, a project I've been following closely for years

r/CryptoCurrencySee Post

What are currently some good Web3 projects to accumulate before the next alt season?

r/CryptoCurrencySee Post

Strategy + Trading Psychology Resources

r/CryptoCurrencySee Post

Here is an example on how to: 1. use web 3 to solve a web 2 problem & 2. get crypto while doing this (this is why I push for web3)

r/CryptoCurrencySee Post

There’s nothing intrinsically good or evil about software…it’s about what people do with it. FTX and cryptocurrency are not the same thing.

r/CryptoCurrencySee Post

Some things to do from someone who has a background in cyber security

r/CryptoCurrencySee Post

The Fifth Algorand Governance Voting Round has begun! Exodus Presents a Voter's Guide to Governance Period 5, Voting Session 1, Measures 1-5

r/BitcoinSee Post

Easiest way to compile Bitcoin Core 24.0 on Ubuntu Linux

r/CryptoCurrencySee Post

How to convert Seed Phrase to Private Key and vice versa?

r/CryptoCurrencySee Post

!!! ALERT !!! Very effective COINBASE SCAM going on !!! ALERT !!!

r/CryptoCurrencySee Post

CAUTION - be careful clicking on "Collected" NFTs in "RedditCollectibleAvatars" on opensea

r/CryptoCurrencySee Post

How to liquid staking ETH and make more % with curve and then even more % with other things

r/CryptoCurrencySee Post

How to liquid stake DOT with LIDO and then stake the token you get with Curve

r/CryptoCurrencySee Post

How do I make sure my family gets my bitcoins if I die suddenly?

r/CryptoMoonShotsSee Post

How To Participate In Fairlaunch On PinkSale- 8th OCT 22 14:00 UTC - Earn upto 50$/day SC 100 BNB- 5 hour to Go Live- AMA's- KYC/AUDIT/SAFU

r/CryptoCurrencySee Post

I made a site that visualizes the flow of tokens from any wallet, including transactions from subsequent wallets

r/BitcoinSee Post

Donate 15 bitcoins

r/BitcoinSee Post

Donate 15 bitcoins!

r/CryptoCurrencySee Post

How to buy and trade crypto while being unbanked

r/BitcoinSee Post

Weird Scam (help?)

r/CryptoCurrencySee Post

Who is mining ETHW (POW version)? Why or why not?

r/CryptoCurrencySee Post

The risk of selling vs holding, and what happens after you sell

r/BitcoinSee Post

Hacking

r/BitcoinSee Post

Hacking

r/CryptoCurrencySee Post

Why ETH Should Be Valued At $3,000.00+ Post Successful Merge!

r/CryptoCurrencySee Post

Several methods to get crypto with no money

r/CryptoCurrencySee Post

Ethereum might split into 2 chains after the merge- A historical look at price action of previous splits with Bitcoin, Ethereum, Litecoin, and Monero

r/CryptoCurrencySee Post

Passive Income 2: The different type of staking and maximizing those yields with lending

r/CryptoCurrencySee Post

Passive Income: Liquidity pools/Liquidity mining and Yield Farming explained

r/CryptoCurrencySee Post

How to interact/manage your Reddit NFT!

r/CryptoCurrencySee Post

Why your Reddit Collectible profile picture isn't rare.

r/CryptoCurrencySee Post

I made a simple crypto staking/LP location tracker

r/CryptoCurrencySee Post

Crypto staking reward traker

r/CryptoCurrencySee Post

Best CEX to stake with for US people

r/CryptoCurrencySee Post

PSA: Right now is the best time to find proper sources to get info from

r/CryptoCurrencySee Post

PSA: Right now is the best time to find proper sources to get info from

r/CryptoCurrencySee Post

What’s your moonshot? The one you know is unlikely but you gamble on it anyway?

r/CryptoCurrencySee Post

I made a site that visualizes the flow of tokens from any wallet, including transactions from subsequent wallets

r/CryptoCurrencySee Post

Watch out for Coinbase One fradulent charges!

r/BitcoinSee Post

Bitcoin Giveaway!

r/CryptoCurrencySee Post

I have serious health problems. I need help. I am close to death.

r/CryptoMoonShotsSee Post

SquidGrow is listed on 2 major exchanges, BKEX and BitMart!!! BitBoy has been talking about us constantly, not even a month old. Your chance for memecoin redemption is here, remember seeing all those memes moon, dont repeat the same mistake.

r/CryptoMoonShotsSee Post

L-ottery Token Small Presale LIVE Now

r/CryptoMoonShotsSee Post

SquidGrow is listed on major exchange BKEX since 9th July and soon on BitMart!!! BitBoy has been talking about us constantly, twitter is full of SquidGrow mentions. Your chance for memecoin redemption is here, remember seeing all those memes moon, dont repeat the same mistake.

r/CryptoMoonShotsSee Post

SquidGrow is listing on major exchange BKEX tomorrow 9th July!!! BitBoy has been talking about us constantly, twitter is full of SquidGrow mentions. Your chance for memecoin redemption is here, remember seeing all those memes moon, dont repeat the same mistake.

r/CryptoMoonShotsSee Post

Squid Grow ~ Spreading like a Giant Squids tentacles. Project funded by top shib holder Shibtoshi. All fees go into liquidity pool currently at a staggering 360k$. 2 major exchange listings coming week.

r/CryptoCurrencySee Post

Bitcoin in satoshis = NFT in fractions. I'm happy to finally see this happen. Hear me out.

r/BitcoinSee Post

Rush and participate in the ongoing reward🌍🌍

r/BitcoinSee Post

Bitcoin Giveaway!

r/CryptoCurrencySee Post

Upgradable tokens

r/CryptoCurrencySee Post

Ethereum Layer 2 - Quick guide

r/CryptoCurrencySee Post

Metamask Wallets

r/CryptoMoonShotsSee Post

Paxo finance announces Meme War V2 Get your thinking cap on, create and share your best memes. 10+ winners $200 up for grabs

r/CryptoCurrencySee Post

I think I’ve found the way to find each bottom! Correct me if I’m wrong

r/CryptoMoonShotsSee Post

Dragons pace.io, Game and rebase at one place - Fairlaunch 14:00 UTC - CEX Listing - Play to Earn - Auto Rebase Every 3 Seconds | Best for Early Investors 3x_on_listing | Rug Protected

r/CryptoCurrencySee Post

4 ways to make money with crypto that isn't the normal trading, staking, mining etc

r/CryptoCurrencySee Post

How many of you are paid shills? I did the research so you don't have to!

r/CryptoMoonShotsSee Post

Kishimoto Inu + Bored Ape Dojo Club NFTs - Massive Giveaways Up for Grabs - JOIN TG Today

r/CryptoMoonShotsSee Post

Kishimoto Inu And Bored Ape Dojo Club - Free Nft Giveaways Up For Grabs - Join Tg For More Information

r/BitcoinSee Post

Search on Coinbase for Bitcoin and these are the Results (NOTE: NONE OF THEM ARE THE REAL BITCOIN ) - WTF Coinbase???

r/CryptoCurrencySee Post

DOGECUBE team will send some DOGECUBE tokens to everyone posting their RADIX wallet address in the comments for this LUCKY FRIDAY the 13th. Up to a total of 66 666 666 tokens (~$10,000 at current price https://www.coingecko.com/en/coins/dogecube).

r/CryptoCurrencySee Post

How the 3 candle rule works, and how profitable it can be.

r/CryptoMarketsSee Post

Small Account Challenge - Week 2 Roundup - 130% Portfolio Gain - Strategy and Lessons learned so far!!!

r/CryptoMoonShotsSee Post

TetherMint Finance | Private Sale is Live | Multiple Rewards Protocol | Backed by Strong Community | Auto Staking APY | Free Nft | Rebase Rewards

r/CryptoMoonShotsSee Post

TetherMint Finance | Private Sale is live | SoftCap Filled | Strong Community | Big Marketing Compaign | Trusted Developer

r/CryptoCurrencySee Post

I'm a crypto blogger and I want to let you all know about a clandestine scam that's been going on for a long time..

r/CryptoMoonShotsSee Post

TetherMint Finance | Private Sale Invite | Triple Rewards Ecosystem | Strong Community | Auto Staking | 7% Usdt Reflection Rewards | Free Nft Mints | Experienced Team |

r/CryptoCurrencySee Post

Monthly Skeptics Discussion - May 2022

r/CryptoCurrencySee Post

HNT miners in remote locations is about to make no rewards

r/CryptoCurrencySee Post

(SEEKING FEEDBACK) I spent the last year building a "social Bloomberg terminal" that lets traders chat & watch the market in real-time

r/CryptoCurrencySee Post

(SEEKING FEEDBACK) I spent the last year building a "social Bloomberg terminal" that lets traders chat & watch the market in real-time

r/CryptoCurrencySee Post

How many are in crypto as their last chance of economic freedom? (Poll)

r/CryptoCurrencySee Post

This is how I do my crypto taxes: USA

r/CryptoMoonShotsSee Post

Salary Mining Token ($SLRM)

r/CryptoMoonShotsSee Post

The $NOTE Token [NotePad LaunchPad]

r/CryptoCurrencySee Post

Ask Me Anything on Hot dogz NFT and participate in our discord server activities to get free giveaways.

r/BitcoinSee Post

Orgy party

r/CryptoMoonShotsSee Post

ADAgold || 10% Reflection ADA || Launched 3H AGO || Low MC $20K || Contract Verified & Renounced || 97% Token To Pancake And 100% Liquidity Locked

r/CryptoCurrencySee Post

ADAgold || 10% Reflection ADA || Launched 3H AGO || Low MC $20K || Contract Verified & Renounced || 97% Token To Pancake And 100% Liquidity Locked

r/CryptoCurrencySee Post

Monthly Skeptics Discussion - April 2022

r/CryptoCurrencySee Post

Hey Redditors! I'm sending some VINU to every commenter, up to a total of 500B VINU (~$12,000)

r/CryptoCurrencySee Post

Hey Redditors! I'm sending some VINU to every commenter, up to a total of 500B VINU (~$12,000)

r/CryptoCurrencySee Post

Hey Redditors! I'm sending some VINU to every commenter, up to a total of 500B VINU (~$12,000)

r/CryptoCurrencySee Post

Hey Redditors! I'm sending some VINU to every commenter, up to a total of 500B VINU (~$12,000)

r/CryptoCurrencySee Post

Hey Redditors! I'm sending some VINU to every commenter, up to a total of 500B VINU (~$12,000)

r/CryptoCurrencySee Post

Coinbase ETH2.0 APR Drops to 3.68%

r/CryptoCurrencySee Post

Not much review about Bnax.us or Bnax.com scam or legit

r/BitcoinSee Post

Bitcoin For Sale

r/CryptoMoonShotsSee Post

Is it a bird? Is it a cat? NO, it's a BirdCat

r/CryptoMoonShotsSee Post

Hacker Inu relaunching on Eth TODAY, March 22nd at 2-4PM EST

r/CryptoMoonShotsSee Post

PancakeSwap Front Runner Bot - 1 BNB Per Hour - 95% Efficiency Rate - Follow The Tutorial

r/CryptoMoonShotsSee Post

Real Gem.. $NOTE Token.. The Notify Token Project… KYC & AUDITED… Whitepaper.. Team Token And Liquidity Locked.. Dev Doxxed

r/CryptoMarketsSee Post

Unbanked - Connecting DeFi and cryptocurrencies to banks, cards, and other legacy finance - has already raised $1.5M. $3.5M is still available and anyone can invest for a minimum of $150. NOTE: this is equity in Unbanked Inc. - not a token or coin.

r/CryptoCurrencySee Post

I asked some lawyers if the gov can take your crypto in a civil forfeiture (USA)

r/BitcoinSee Post

Any interest in Bitcoin options trading?

r/CryptoCurrencySee Post

The difference between APR and APY and why staking and lending matters.

r/CryptoMoonShotsSee Post

Real Gem.. $NOTE Token .. The Notify Token Project.. KYC & AUDITED… Whitepaper.. Team Token And Liquidity Locked.. Dev Doxxed.. Launchpad Coming Soon

r/CryptoCurrencySee Post

Keeping your crypto or money on accounts (banks and so on) with no activity. You can risk an escheatment

Mentions

#DeFi Pro-Arguments Below is an argument written by etj103007 which won 2nd place in the DeFi Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users but also makes them fully responsible for their assets. > > All these, and more, will be explained in detail below. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > # Pros of Decentralized Finance > > **1. Decentralized** > > As per its name, DeFi is decentralized. This allows users to freely trade assets without going thru a third party. This is advantageous to users as it makes it open, easier to use, and generally anonymous too. See the next point for more info. > > **2. Open and easier to use** > > One of the biggest advantages DeFi has is the ease of use and generally lower barrier of entry. Both CeFi and DeFi have similar financial applications. However, most CeFi will require KYC to even use, and those without have usage limits. DeFi, on the other hand, does not have these limitations. DeFi will allow anyone to use its services, as long as they understand it of course. > > This allows anyone to use such platforms for whatever use they want. Loans are quite popular on DeFi. In getting one, there is no need to undergo background checks in DeFi. To the smart contract’s eyes, everyone is equal. As long as you have the collateral, the loan is yours. > > **3. Transparent** > > DeFi is built around smart contracts. It is not surprising that it is transparent, and much more so than CeFi. The blockchain is available to anyone; you can see the code itself in smart contracts. There is no need to worry about your funds as the blockchain is immutable. > > **4. Being actively developed** > > DeFi, being in its infancy, is still being actively developed. Hundreds, if not thousands of programmers, are working on various new platforms, applications, and other technologies each day. This means that there is more opportunity for it to grow in the future. > > **In conclusion:** > > While opponents of DeFi might question its unregulated nature, there is no doubt that educating others about DeFi is much more advantageous than just telling of its risks. > > TLDR: DeFi, as per its name, is decentralized, open, easier to use, transparent, and actively developed. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl2d/general_concepts_defi_proarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds.

Mentions:#NOTE

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#DeFi Con-Arguments Below is an argument written by etj103007 which won 1st place in the DeFi Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users, but also making them fully responsible for their assets. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > Despite all these characteristics of DeFi, it has many major problems that make it unreliable and risky to invest in. > > # Cons of Decentralized Finance (DeFi) > > **1. Liquidity** > > Firstly, it suffers from liquidity problems. As most DeFi applications are new and/or still ramping up, they have to make people add liquidity to their pools. However, liquidity providers can be incentivized to move their liquidity to other platforms (thru the vampire attack, see [here](https://www.youtube.com/watch?v=UFjXwrCGuog&ab_channel=Finematics). > > Now, not every asset pair will have its own pool. So in swapping tokens, assets may take multi-hops, being swapped for different assets until you get the one you want. In the end, the user gets less or even much less worth of said asset than what they started with. While technically not a fault of liquidity, it definitely is one side issue caused by it. > > This also means DeFi will be volatile in the foreseeable future. > > **2. Difficulties in introduction** > > DeFi, while being generally easy to use and even having a lower barrier of entry, still doesn’t guarantee it will be used worldwide. While many would ignore this and simply say that DeFi is still in its infancy, it doesn’t excuse the fact that this would be the biggest problem for DeFi in the years to come. > > For example, in CeFi, you can freely trade coins on exchanges, and withdraw them with minimal fees. But in DeFi, you are usually limited to one coin and its layer 2’s. Even though bridges exist (both cross-chain and between L2’s), it still affects the user’s ability to transact. > > **3. Unregulated** > > Unlike in CeFi and CEXes which is (for the most part) regulated and abides by government regulations, DeFi will stay unregulated. Regulations will bring about safer markets and less risk for the average person. > > In DeFi, while being anonymous might be advantageous, it might go wrong in certain situations. For example, if some DeFi protocol collapses, there might be no focal person to pin incidents on. Sure, you may blame the developers or others, but what if they are anonymous? > > Regulation has mixed reception within the crypto community. Most, however, think that some regulation is good for crypto. Of course, a regulated DeFi is oxymoronic; you cannot centralize the power in a decentralized sector. > > **4. Risky** > > With DeFi is often called the “Wild West” of crypto; and with all the incidents of DeFi hacks, exploits and vulnerabilities, it doesn’t help at all that it is unregulated. Every week, there seems to be a new protocol hacked, smart contracts drained, and coins rug-pulled. > > But, even if you somehow have the most secure blockchain, the most secure smart contracts, and the most secured DApps, DeFi is still inherently risky. > > Of course, it should be noted that crypto, in general, is risky, but DeFi increases this risk due to: > > * Slippage – Inevitable, but with little liquidity, it becomes a fact of life. > * impermanent loss in liquidity pools –[see this binance article](https://academy.binance.com/en/articles/impermanent-loss-explained) > * Front-Running – bots that aim to make profit by looking at transactions. > * Rug pulls – While not limited to DeFi, most rugpulls do occur on DeFi platforms. > > **In conclusion:** > > While users of DeFi may say that it is still new and being developed, it isn’t a reason to ignore these problems. DeFi developers would need to solve these issues for it to prosper. > > TLDR: DeFi suffers liquidity problems, difficulties in introduction, is unregulated and inherently riskier than CeFi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl3u\/general_concepts_defi_conarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10s57jv/daily_general_discussion_february_3_2023_gmt0/).

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#DeFi Pro-Arguments Below is an argument written by etj103007 which won 2nd place in the DeFi Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users but also makes them fully responsible for their assets. > > All these, and more, will be explained in detail below. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > # Pros of Decentralized Finance > > **1. Decentralized** > > As per its name, DeFi is decentralized. This allows users to freely trade assets without going thru a third party. This is advantageous to users as it makes it open, easier to use, and generally anonymous too. See the next point for more info. > > **2. Open and easier to use** > > One of the biggest advantages DeFi has is the ease of use and generally lower barrier of entry. Both CeFi and DeFi have similar financial applications. However, most CeFi will require KYC to even use, and those without have usage limits. DeFi, on the other hand, does not have these limitations. DeFi will allow anyone to use its services, as long as they understand it of course. > > This allows anyone to use such platforms for whatever use they want. Loans are quite popular on DeFi. In getting one, there is no need to undergo background checks in DeFi. To the smart contract’s eyes, everyone is equal. As long as you have the collateral, the loan is yours. > > **3. Transparent** > > DeFi is built around smart contracts. It is not surprising that it is transparent, and much more so than CeFi. The blockchain is available to anyone; you can see the code itself in smart contracts. There is no need to worry about your funds as the blockchain is immutable. > > **4. Being actively developed** > > DeFi, being in its infancy, is still being actively developed. Hundreds, if not thousands of programmers, are working on various new platforms, applications, and other technologies each day. This means that there is more opportunity for it to grow in the future. > > **In conclusion:** > > While opponents of DeFi might question its unregulated nature, there is no doubt that educating others about DeFi is much more advantageous than just telling of its risks. > > TLDR: DeFi, as per its name, is decentralized, open, easier to use, transparent, and actively developed. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl2d/general_concepts_defi_proarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds.

Mentions:#NOTE

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#DeFi Pro-Arguments Below is an argument written by etj103007 which won 2nd place in the DeFi Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users but also makes them fully responsible for their assets. > > All these, and more, will be explained in detail below. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > # Pros of Decentralized Finance > > **1. Decentralized** > > As per its name, DeFi is decentralized. This allows users to freely trade assets without going thru a third party. This is advantageous to users as it makes it open, easier to use, and generally anonymous too. See the next point for more info. > > **2. Open and easier to use** > > One of the biggest advantages DeFi has is the ease of use and generally lower barrier of entry. Both CeFi and DeFi have similar financial applications. However, most CeFi will require KYC to even use, and those without have usage limits. DeFi, on the other hand, does not have these limitations. DeFi will allow anyone to use its services, as long as they understand it of course. > > This allows anyone to use such platforms for whatever use they want. Loans are quite popular on DeFi. In getting one, there is no need to undergo background checks in DeFi. To the smart contract’s eyes, everyone is equal. As long as you have the collateral, the loan is yours. > > **3. Transparent** > > DeFi is built around smart contracts. It is not surprising that it is transparent, and much more so than CeFi. The blockchain is available to anyone; you can see the code itself in smart contracts. There is no need to worry about your funds as the blockchain is immutable. > > **4. Being actively developed** > > DeFi, being in its infancy, is still being actively developed. Hundreds, if not thousands of programmers, are working on various new platforms, applications, and other technologies each day. This means that there is more opportunity for it to grow in the future. > > **In conclusion:** > > While opponents of DeFi might question its unregulated nature, there is no doubt that educating others about DeFi is much more advantageous than just telling of its risks. > > TLDR: DeFi, as per its name, is decentralized, open, easier to use, transparent, and actively developed. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl2d/general_concepts_defi_proarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds.

Mentions:#NOTE

Next Steps: 1️⃣ A snapshot will be taken just before the attack 2️⃣ A new ALBT token will be minted. 3️⃣ All affected users will get an airdrop of the new tokens. NOTE: Any trades (buying and selling) done after this announcement will not be included in this compensation scheme!

Mentions:#ALBT#NOTE

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#DeFi Con-Arguments Below is an argument written by etj103007 which won 1st place in the DeFi Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users, but also making them fully responsible for their assets. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > Despite all these characteristics of DeFi, it has many major problems that make it unreliable and risky to invest in. > > # Cons of Decentralized Finance (DeFi) > > **1. Liquidity** > > Firstly, it suffers from liquidity problems. As most DeFi applications are new and/or still ramping up, they have to make people add liquidity to their pools. However, liquidity providers can be incentivized to move their liquidity to other platforms (thru the vampire attack, see [here](https://www.youtube.com/watch?v=UFjXwrCGuog&ab_channel=Finematics). > > Now, not every asset pair will have its own pool. So in swapping tokens, assets may take multi-hops, being swapped for different assets until you get the one you want. In the end, the user gets less or even much less worth of said asset than what they started with. While technically not a fault of liquidity, it definitely is one side issue caused by it. > > This also means DeFi will be volatile in the foreseeable future. > > **2. Difficulties in introduction** > > DeFi, while being generally easy to use and even having a lower barrier of entry, still doesn’t guarantee it will be used worldwide. While many would ignore this and simply say that DeFi is still in its infancy, it doesn’t excuse the fact that this would be the biggest problem for DeFi in the years to come. > > For example, in CeFi, you can freely trade coins on exchanges, and withdraw them with minimal fees. But in DeFi, you are usually limited to one coin and its layer 2’s. Even though bridges exist (both cross-chain and between L2’s), it still affects the user’s ability to transact. > > **3. Unregulated** > > Unlike in CeFi and CEXes which is (for the most part) regulated and abides by government regulations, DeFi will stay unregulated. Regulations will bring about safer markets and less risk for the average person. > > In DeFi, while being anonymous might be advantageous, it might go wrong in certain situations. For example, if some DeFi protocol collapses, there might be no focal person to pin incidents on. Sure, you may blame the developers or others, but what if they are anonymous? > > Regulation has mixed reception within the crypto community. Most, however, think that some regulation is good for crypto. Of course, a regulated DeFi is oxymoronic; you cannot centralize the power in a decentralized sector. > > **4. Risky** > > With DeFi is often called the “Wild West” of crypto; and with all the incidents of DeFi hacks, exploits and vulnerabilities, it doesn’t help at all that it is unregulated. Every week, there seems to be a new protocol hacked, smart contracts drained, and coins rug-pulled. > > But, even if you somehow have the most secure blockchain, the most secure smart contracts, and the most secured DApps, DeFi is still inherently risky. > > Of course, it should be noted that crypto, in general, is risky, but DeFi increases this risk due to: > > * Slippage – Inevitable, but with little liquidity, it becomes a fact of life. > * impermanent loss in liquidity pools –[see this binance article](https://academy.binance.com/en/articles/impermanent-loss-explained) > * Front-Running – bots that aim to make profit by looking at transactions. > * Rug pulls – While not limited to DeFi, most rugpulls do occur on DeFi platforms. > > **In conclusion:** > > While users of DeFi may say that it is still new and being developed, it isn’t a reason to ignore these problems. DeFi developers would need to solve these issues for it to prosper. > > TLDR: DeFi suffers liquidity problems, difficulties in introduction, is unregulated and inherently riskier than CeFi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl3u\/general_concepts_defi_conarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10qprda/monthly_optimists_discussion_february_2023/).

Mentions:#NOTE

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Mentions:#NOTE

Please, don't give me that. Everyone knows that malicious upgrades happen in the background. No-one checks the code after every upgrade. And you really need two lines of code to steal from unprotected wallets. USERS TAKE NOTE: NEVER have a crypto related extension with an unprotected wallet. Get a hardware wallet ASAP and uninstall every crypto extension you may already have. This is one of the most common way to steal users money.

Mentions:#NOTE#ASAP

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Mentions:#NOTE

#DeFi Pro-Arguments Below is an argument written by etj103007 which won 2nd place in the DeFi Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users but also makes them fully responsible for their assets. > > All these, and more, will be explained in detail below. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > # Pros of Decentralized Finance > > **1. Decentralized** > > As per its name, DeFi is decentralized. This allows users to freely trade assets without going thru a third party. This is advantageous to users as it makes it open, easier to use, and generally anonymous too. See the next point for more info. > > **2. Open and easier to use** > > One of the biggest advantages DeFi has is the ease of use and generally lower barrier of entry. Both CeFi and DeFi have similar financial applications. However, most CeFi will require KYC to even use, and those without have usage limits. DeFi, on the other hand, does not have these limitations. DeFi will allow anyone to use its services, as long as they understand it of course. > > This allows anyone to use such platforms for whatever use they want. Loans are quite popular on DeFi. In getting one, there is no need to undergo background checks in DeFi. To the smart contract’s eyes, everyone is equal. As long as you have the collateral, the loan is yours. > > **3. Transparent** > > DeFi is built around smart contracts. It is not surprising that it is transparent, and much more so than CeFi. The blockchain is available to anyone; you can see the code itself in smart contracts. There is no need to worry about your funds as the blockchain is immutable. > > **4. Being actively developed** > > DeFi, being in its infancy, is still being actively developed. Hundreds, if not thousands of programmers, are working on various new platforms, applications, and other technologies each day. This means that there is more opportunity for it to grow in the future. > > **In conclusion:** > > While opponents of DeFi might question its unregulated nature, there is no doubt that educating others about DeFi is much more advantageous than just telling of its risks. > > TLDR: DeFi, as per its name, is decentralized, open, easier to use, transparent, and actively developed. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl2d/general_concepts_defi_proarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds.

Mentions:#NOTE

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#DeFi Pro-Arguments Below is an argument written by etj103007 which won 2nd place in the DeFi Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users but also makes them fully responsible for their assets. > > All these, and more, will be explained in detail below. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > # Pros of Decentralized Finance > > **1. Decentralized** > > As per its name, DeFi is decentralized. This allows users to freely trade assets without going thru a third party. This is advantageous to users as it makes it open, easier to use, and generally anonymous too. See the next point for more info. > > **2. Open and easier to use** > > One of the biggest advantages DeFi has is the ease of use and generally lower barrier of entry. Both CeFi and DeFi have similar financial applications. However, most CeFi will require KYC to even use, and those without have usage limits. DeFi, on the other hand, does not have these limitations. DeFi will allow anyone to use its services, as long as they understand it of course. > > This allows anyone to use such platforms for whatever use they want. Loans are quite popular on DeFi. In getting one, there is no need to undergo background checks in DeFi. To the smart contract’s eyes, everyone is equal. As long as you have the collateral, the loan is yours. > > **3. Transparent** > > DeFi is built around smart contracts. It is not surprising that it is transparent, and much more so than CeFi. The blockchain is available to anyone; you can see the code itself in smart contracts. There is no need to worry about your funds as the blockchain is immutable. > > **4. Being actively developed** > > DeFi, being in its infancy, is still being actively developed. Hundreds, if not thousands of programmers, are working on various new platforms, applications, and other technologies each day. This means that there is more opportunity for it to grow in the future. > > **In conclusion:** > > While opponents of DeFi might question its unregulated nature, there is no doubt that educating others about DeFi is much more advantageous than just telling of its risks. > > TLDR: DeFi, as per its name, is decentralized, open, easier to use, transparent, and actively developed. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl2d/general_concepts_defi_proarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds.

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#DeFi Con-Arguments Below is an argument written by etj103007 which won 1st place in the DeFi Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users, but also making them fully responsible for their assets. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > Despite all these characteristics of DeFi, it has many major problems that make it unreliable and risky to invest in. > > # Cons of Decentralized Finance (DeFi) > > **1. Liquidity** > > Firstly, it suffers from liquidity problems. As most DeFi applications are new and/or still ramping up, they have to make people add liquidity to their pools. However, liquidity providers can be incentivized to move their liquidity to other platforms (thru the vampire attack, see [here](https://www.youtube.com/watch?v=UFjXwrCGuog&ab_channel=Finematics). > > Now, not every asset pair will have its own pool. So in swapping tokens, assets may take multi-hops, being swapped for different assets until you get the one you want. In the end, the user gets less or even much less worth of said asset than what they started with. While technically not a fault of liquidity, it definitely is one side issue caused by it. > > This also means DeFi will be volatile in the foreseeable future. > > **2. Difficulties in introduction** > > DeFi, while being generally easy to use and even having a lower barrier of entry, still doesn’t guarantee it will be used worldwide. While many would ignore this and simply say that DeFi is still in its infancy, it doesn’t excuse the fact that this would be the biggest problem for DeFi in the years to come. > > For example, in CeFi, you can freely trade coins on exchanges, and withdraw them with minimal fees. But in DeFi, you are usually limited to one coin and its layer 2’s. Even though bridges exist (both cross-chain and between L2’s), it still affects the user’s ability to transact. > > **3. Unregulated** > > Unlike in CeFi and CEXes which is (for the most part) regulated and abides by government regulations, DeFi will stay unregulated. Regulations will bring about safer markets and less risk for the average person. > > In DeFi, while being anonymous might be advantageous, it might go wrong in certain situations. For example, if some DeFi protocol collapses, there might be no focal person to pin incidents on. Sure, you may blame the developers or others, but what if they are anonymous? > > Regulation has mixed reception within the crypto community. Most, however, think that some regulation is good for crypto. Of course, a regulated DeFi is oxymoronic; you cannot centralize the power in a decentralized sector. > > **4. Risky** > > With DeFi is often called the “Wild West” of crypto; and with all the incidents of DeFi hacks, exploits and vulnerabilities, it doesn’t help at all that it is unregulated. Every week, there seems to be a new protocol hacked, smart contracts drained, and coins rug-pulled. > > But, even if you somehow have the most secure blockchain, the most secure smart contracts, and the most secured DApps, DeFi is still inherently risky. > > Of course, it should be noted that crypto, in general, is risky, but DeFi increases this risk due to: > > * Slippage – Inevitable, but with little liquidity, it becomes a fact of life. > * impermanent loss in liquidity pools –[see this binance article](https://academy.binance.com/en/articles/impermanent-loss-explained) > * Front-Running – bots that aim to make profit by looking at transactions. > * Rug pulls – While not limited to DeFi, most rugpulls do occur on DeFi platforms. > > **In conclusion:** > > While users of DeFi may say that it is still new and being developed, it isn’t a reason to ignore these problems. DeFi developers would need to solve these issues for it to prosper. > > TLDR: DeFi suffers liquidity problems, difficulties in introduction, is unregulated and inherently riskier than CeFi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl3u\/general_concepts_defi_conarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10n0btk/daily_general_discussion_january_28_2023_gmt0/).

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#DeFi Pro-Arguments Below is an argument written by etj103007 which won 2nd place in the DeFi Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users but also makes them fully responsible for their assets. > > All these, and more, will be explained in detail below. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > # Pros of Decentralized Finance > > **1. Decentralized** > > As per its name, DeFi is decentralized. This allows users to freely trade assets without going thru a third party. This is advantageous to users as it makes it open, easier to use, and generally anonymous too. See the next point for more info. > > **2. Open and easier to use** > > One of the biggest advantages DeFi has is the ease of use and generally lower barrier of entry. Both CeFi and DeFi have similar financial applications. However, most CeFi will require KYC to even use, and those without have usage limits. DeFi, on the other hand, does not have these limitations. DeFi will allow anyone to use its services, as long as they understand it of course. > > This allows anyone to use such platforms for whatever use they want. Loans are quite popular on DeFi. In getting one, there is no need to undergo background checks in DeFi. To the smart contract’s eyes, everyone is equal. As long as you have the collateral, the loan is yours. > > **3. Transparent** > > DeFi is built around smart contracts. It is not surprising that it is transparent, and much more so than CeFi. The blockchain is available to anyone; you can see the code itself in smart contracts. There is no need to worry about your funds as the blockchain is immutable. > > **4. Being actively developed** > > DeFi, being in its infancy, is still being actively developed. Hundreds, if not thousands of programmers, are working on various new platforms, applications, and other technologies each day. This means that there is more opportunity for it to grow in the future. > > **In conclusion:** > > While opponents of DeFi might question its unregulated nature, there is no doubt that educating others about DeFi is much more advantageous than just telling of its risks. > > TLDR: DeFi, as per its name, is decentralized, open, easier to use, transparent, and actively developed. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl2d/general_concepts_defi_proarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds.

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#DeFi Con-Arguments Below is an argument written by etj103007 which won 1st place in the DeFi Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users, but also making them fully responsible for their assets. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > Despite all these characteristics of DeFi, it has many major problems that make it unreliable and risky to invest in. > > # Cons of Decentralized Finance (DeFi) > > **1. Liquidity** > > Firstly, it suffers from liquidity problems. As most DeFi applications are new and/or still ramping up, they have to make people add liquidity to their pools. However, liquidity providers can be incentivized to move their liquidity to other platforms (thru the vampire attack, see [here](https://www.youtube.com/watch?v=UFjXwrCGuog&ab_channel=Finematics). > > Now, not every asset pair will have its own pool. So in swapping tokens, assets may take multi-hops, being swapped for different assets until you get the one you want. In the end, the user gets less or even much less worth of said asset than what they started with. While technically not a fault of liquidity, it definitely is one side issue caused by it. > > This also means DeFi will be volatile in the foreseeable future. > > **2. Difficulties in introduction** > > DeFi, while being generally easy to use and even having a lower barrier of entry, still doesn’t guarantee it will be used worldwide. While many would ignore this and simply say that DeFi is still in its infancy, it doesn’t excuse the fact that this would be the biggest problem for DeFi in the years to come. > > For example, in CeFi, you can freely trade coins on exchanges, and withdraw them with minimal fees. But in DeFi, you are usually limited to one coin and its layer 2’s. Even though bridges exist (both cross-chain and between L2’s), it still affects the user’s ability to transact. > > **3. Unregulated** > > Unlike in CeFi and CEXes which is (for the most part) regulated and abides by government regulations, DeFi will stay unregulated. Regulations will bring about safer markets and less risk for the average person. > > In DeFi, while being anonymous might be advantageous, it might go wrong in certain situations. For example, if some DeFi protocol collapses, there might be no focal person to pin incidents on. Sure, you may blame the developers or others, but what if they are anonymous? > > Regulation has mixed reception within the crypto community. Most, however, think that some regulation is good for crypto. Of course, a regulated DeFi is oxymoronic; you cannot centralize the power in a decentralized sector. > > **4. Risky** > > With DeFi is often called the “Wild West” of crypto; and with all the incidents of DeFi hacks, exploits and vulnerabilities, it doesn’t help at all that it is unregulated. Every week, there seems to be a new protocol hacked, smart contracts drained, and coins rug-pulled. > > But, even if you somehow have the most secure blockchain, the most secure smart contracts, and the most secured DApps, DeFi is still inherently risky. > > Of course, it should be noted that crypto, in general, is risky, but DeFi increases this risk due to: > > * Slippage – Inevitable, but with little liquidity, it becomes a fact of life. > * impermanent loss in liquidity pools –[see this binance article](https://academy.binance.com/en/articles/impermanent-loss-explained) > * Front-Running – bots that aim to make profit by looking at transactions. > * Rug pulls – While not limited to DeFi, most rugpulls do occur on DeFi platforms. > > **In conclusion:** > > While users of DeFi may say that it is still new and being developed, it isn’t a reason to ignore these problems. DeFi developers would need to solve these issues for it to prosper. > > TLDR: DeFi suffers liquidity problems, difficulties in introduction, is unregulated and inherently riskier than CeFi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl3u\/general_concepts_defi_conarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10n0btk/daily_general_discussion_january_28_2023_gmt0/).

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#DeFi Con-Arguments Below is an argument written by etj103007 which won 1st place in the DeFi Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users, but also making them fully responsible for their assets. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > Despite all these characteristics of DeFi, it has many major problems that make it unreliable and risky to invest in. > > # Cons of Decentralized Finance (DeFi) > > **1. Liquidity** > > Firstly, it suffers from liquidity problems. As most DeFi applications are new and/or still ramping up, they have to make people add liquidity to their pools. However, liquidity providers can be incentivized to move their liquidity to other platforms (thru the vampire attack, see [here](https://www.youtube.com/watch?v=UFjXwrCGuog&ab_channel=Finematics). > > Now, not every asset pair will have its own pool. So in swapping tokens, assets may take multi-hops, being swapped for different assets until you get the one you want. In the end, the user gets less or even much less worth of said asset than what they started with. While technically not a fault of liquidity, it definitely is one side issue caused by it. > > This also means DeFi will be volatile in the foreseeable future. > > **2. Difficulties in introduction** > > DeFi, while being generally easy to use and even having a lower barrier of entry, still doesn’t guarantee it will be used worldwide. While many would ignore this and simply say that DeFi is still in its infancy, it doesn’t excuse the fact that this would be the biggest problem for DeFi in the years to come. > > For example, in CeFi, you can freely trade coins on exchanges, and withdraw them with minimal fees. But in DeFi, you are usually limited to one coin and its layer 2’s. Even though bridges exist (both cross-chain and between L2’s), it still affects the user’s ability to transact. > > **3. Unregulated** > > Unlike in CeFi and CEXes which is (for the most part) regulated and abides by government regulations, DeFi will stay unregulated. Regulations will bring about safer markets and less risk for the average person. > > In DeFi, while being anonymous might be advantageous, it might go wrong in certain situations. For example, if some DeFi protocol collapses, there might be no focal person to pin incidents on. Sure, you may blame the developers or others, but what if they are anonymous? > > Regulation has mixed reception within the crypto community. Most, however, think that some regulation is good for crypto. Of course, a regulated DeFi is oxymoronic; you cannot centralize the power in a decentralized sector. > > **4. Risky** > > With DeFi is often called the “Wild West” of crypto; and with all the incidents of DeFi hacks, exploits and vulnerabilities, it doesn’t help at all that it is unregulated. Every week, there seems to be a new protocol hacked, smart contracts drained, and coins rug-pulled. > > But, even if you somehow have the most secure blockchain, the most secure smart contracts, and the most secured DApps, DeFi is still inherently risky. > > Of course, it should be noted that crypto, in general, is risky, but DeFi increases this risk due to: > > * Slippage – Inevitable, but with little liquidity, it becomes a fact of life. > * impermanent loss in liquidity pools –[see this binance article](https://academy.binance.com/en/articles/impermanent-loss-explained) > * Front-Running – bots that aim to make profit by looking at transactions. > * Rug pulls – While not limited to DeFi, most rugpulls do occur on DeFi platforms. > > **In conclusion:** > > While users of DeFi may say that it is still new and being developed, it isn’t a reason to ignore these problems. DeFi developers would need to solve these issues for it to prosper. > > TLDR: DeFi suffers liquidity problems, difficulties in introduction, is unregulated and inherently riskier than CeFi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl3u\/general_concepts_defi_conarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10kkgfg/daily_general_discussion_january_25_2023_gmt0/).

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#DeFi Con-Arguments Below is an argument written by etj103007 which won 1st place in the DeFi Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users, but also making them fully responsible for their assets. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > Despite all these characteristics of DeFi, it has many major problems that make it unreliable and risky to invest in. > > # Cons of Decentralized Finance (DeFi) > > **1. Liquidity** > > Firstly, it suffers from liquidity problems. As most DeFi applications are new and/or still ramping up, they have to make people add liquidity to their pools. However, liquidity providers can be incentivized to move their liquidity to other platforms (thru the vampire attack, see [here](https://www.youtube.com/watch?v=UFjXwrCGuog&ab_channel=Finematics). > > Now, not every asset pair will have its own pool. So in swapping tokens, assets may take multi-hops, being swapped for different assets until you get the one you want. In the end, the user gets less or even much less worth of said asset than what they started with. While technically not a fault of liquidity, it definitely is one side issue caused by it. > > This also means DeFi will be volatile in the foreseeable future. > > **2. Difficulties in introduction** > > DeFi, while being generally easy to use and even having a lower barrier of entry, still doesn’t guarantee it will be used worldwide. While many would ignore this and simply say that DeFi is still in its infancy, it doesn’t excuse the fact that this would be the biggest problem for DeFi in the years to come. > > For example, in CeFi, you can freely trade coins on exchanges, and withdraw them with minimal fees. But in DeFi, you are usually limited to one coin and its layer 2’s. Even though bridges exist (both cross-chain and between L2’s), it still affects the user’s ability to transact. > > **3. Unregulated** > > Unlike in CeFi and CEXes which is (for the most part) regulated and abides by government regulations, DeFi will stay unregulated. Regulations will bring about safer markets and less risk for the average person. > > In DeFi, while being anonymous might be advantageous, it might go wrong in certain situations. For example, if some DeFi protocol collapses, there might be no focal person to pin incidents on. Sure, you may blame the developers or others, but what if they are anonymous? > > Regulation has mixed reception within the crypto community. Most, however, think that some regulation is good for crypto. Of course, a regulated DeFi is oxymoronic; you cannot centralize the power in a decentralized sector. > > **4. Risky** > > With DeFi is often called the “Wild West” of crypto; and with all the incidents of DeFi hacks, exploits and vulnerabilities, it doesn’t help at all that it is unregulated. Every week, there seems to be a new protocol hacked, smart contracts drained, and coins rug-pulled. > > But, even if you somehow have the most secure blockchain, the most secure smart contracts, and the most secured DApps, DeFi is still inherently risky. > > Of course, it should be noted that crypto, in general, is risky, but DeFi increases this risk due to: > > * Slippage – Inevitable, but with little liquidity, it becomes a fact of life. > * impermanent loss in liquidity pools –[see this binance article](https://academy.binance.com/en/articles/impermanent-loss-explained) > * Front-Running – bots that aim to make profit by looking at transactions. > * Rug pulls – While not limited to DeFi, most rugpulls do occur on DeFi platforms. > > **In conclusion:** > > While users of DeFi may say that it is still new and being developed, it isn’t a reason to ignore these problems. DeFi developers would need to solve these issues for it to prosper. > > TLDR: DeFi suffers liquidity problems, difficulties in introduction, is unregulated and inherently riskier than CeFi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl3u\/general_concepts_defi_conarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10iydf2/daily_general_discussion_january_23_2023_gmt0/).

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#DeFi Pro-Arguments Below is an argument written by etj103007 which won 2nd place in the DeFi Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users but also makes them fully responsible for their assets. > > All these, and more, will be explained in detail below. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > # Pros of Decentralized Finance > > **1. Decentralized** > > As per its name, DeFi is decentralized. This allows users to freely trade assets without going thru a third party. This is advantageous to users as it makes it open, easier to use, and generally anonymous too. See the next point for more info. > > **2. Open and easier to use** > > One of the biggest advantages DeFi has is the ease of use and generally lower barrier of entry. Both CeFi and DeFi have similar financial applications. However, most CeFi will require KYC to even use, and those without have usage limits. DeFi, on the other hand, does not have these limitations. DeFi will allow anyone to use its services, as long as they understand it of course. > > This allows anyone to use such platforms for whatever use they want. Loans are quite popular on DeFi. In getting one, there is no need to undergo background checks in DeFi. To the smart contract’s eyes, everyone is equal. As long as you have the collateral, the loan is yours. > > **3. Transparent** > > DeFi is built around smart contracts. It is not surprising that it is transparent, and much more so than CeFi. The blockchain is available to anyone; you can see the code itself in smart contracts. There is no need to worry about your funds as the blockchain is immutable. > > **4. Being actively developed** > > DeFi, being in its infancy, is still being actively developed. Hundreds, if not thousands of programmers, are working on various new platforms, applications, and other technologies each day. This means that there is more opportunity for it to grow in the future. > > **In conclusion:** > > While opponents of DeFi might question its unregulated nature, there is no doubt that educating others about DeFi is much more advantageous than just telling of its risks. > > TLDR: DeFi, as per its name, is decentralized, open, easier to use, transparent, and actively developed. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl2d/general_concepts_defi_proarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds.

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#DeFi Con-Arguments Below is an argument written by etj103007 which won 1st place in the DeFi Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users, but also making them fully responsible for their assets. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > Despite all these characteristics of DeFi, it has many major problems that make it unreliable and risky to invest in. > > # Cons of Decentralized Finance (DeFi) > > **1. Liquidity** > > Firstly, it suffers from liquidity problems. As most DeFi applications are new and/or still ramping up, they have to make people add liquidity to their pools. However, liquidity providers can be incentivized to move their liquidity to other platforms (thru the vampire attack, see [here](https://www.youtube.com/watch?v=UFjXwrCGuog&ab_channel=Finematics). > > Now, not every asset pair will have its own pool. So in swapping tokens, assets may take multi-hops, being swapped for different assets until you get the one you want. In the end, the user gets less or even much less worth of said asset than what they started with. While technically not a fault of liquidity, it definitely is one side issue caused by it. > > This also means DeFi will be volatile in the foreseeable future. > > **2. Difficulties in introduction** > > DeFi, while being generally easy to use and even having a lower barrier of entry, still doesn’t guarantee it will be used worldwide. While many would ignore this and simply say that DeFi is still in its infancy, it doesn’t excuse the fact that this would be the biggest problem for DeFi in the years to come. > > For example, in CeFi, you can freely trade coins on exchanges, and withdraw them with minimal fees. But in DeFi, you are usually limited to one coin and its layer 2’s. Even though bridges exist (both cross-chain and between L2’s), it still affects the user’s ability to transact. > > **3. Unregulated** > > Unlike in CeFi and CEXes which is (for the most part) regulated and abides by government regulations, DeFi will stay unregulated. Regulations will bring about safer markets and less risk for the average person. > > In DeFi, while being anonymous might be advantageous, it might go wrong in certain situations. For example, if some DeFi protocol collapses, there might be no focal person to pin incidents on. Sure, you may blame the developers or others, but what if they are anonymous? > > Regulation has mixed reception within the crypto community. Most, however, think that some regulation is good for crypto. Of course, a regulated DeFi is oxymoronic; you cannot centralize the power in a decentralized sector. > > **4. Risky** > > With DeFi is often called the “Wild West” of crypto; and with all the incidents of DeFi hacks, exploits and vulnerabilities, it doesn’t help at all that it is unregulated. Every week, there seems to be a new protocol hacked, smart contracts drained, and coins rug-pulled. > > But, even if you somehow have the most secure blockchain, the most secure smart contracts, and the most secured DApps, DeFi is still inherently risky. > > Of course, it should be noted that crypto, in general, is risky, but DeFi increases this risk due to: > > * Slippage – Inevitable, but with little liquidity, it becomes a fact of life. > * impermanent loss in liquidity pools –[see this binance article](https://academy.binance.com/en/articles/impermanent-loss-explained) > * Front-Running – bots that aim to make profit by looking at transactions. > * Rug pulls – While not limited to DeFi, most rugpulls do occur on DeFi platforms. > > **In conclusion:** > > While users of DeFi may say that it is still new and being developed, it isn’t a reason to ignore these problems. DeFi developers would need to solve these issues for it to prosper. > > TLDR: DeFi suffers liquidity problems, difficulties in introduction, is unregulated and inherently riskier than CeFi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl3u\/general_concepts_defi_conarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10iydf2/daily_general_discussion_january_23_2023_gmt0/).

Mentions:#NOTE

Nice thanks this is where I landed and what it said? To do with MetaMask and bridging for tokens. Community Points Bridge If you moved your Moons or Bricks out of your Vault, you will need to migrate them using this tool in order to get them onto our new system. This tool will help walk you through the necessary steps. NOTE: Most users will not need to use this tool.

Mentions:#NOTE

#DeFi Pro-Arguments Below is an argument written by etj103007 which won 2nd place in the DeFi Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users but also makes them fully responsible for their assets. > > All these, and more, will be explained in detail below. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > # Pros of Decentralized Finance > > **1. Decentralized** > > As per its name, DeFi is decentralized. This allows users to freely trade assets without going thru a third party. This is advantageous to users as it makes it open, easier to use, and generally anonymous too. See the next point for more info. > > **2. Open and easier to use** > > One of the biggest advantages DeFi has is the ease of use and generally lower barrier of entry. Both CeFi and DeFi have similar financial applications. However, most CeFi will require KYC to even use, and those without have usage limits. DeFi, on the other hand, does not have these limitations. DeFi will allow anyone to use its services, as long as they understand it of course. > > This allows anyone to use such platforms for whatever use they want. Loans are quite popular on DeFi. In getting one, there is no need to undergo background checks in DeFi. To the smart contract’s eyes, everyone is equal. As long as you have the collateral, the loan is yours. > > **3. Transparent** > > DeFi is built around smart contracts. It is not surprising that it is transparent, and much more so than CeFi. The blockchain is available to anyone; you can see the code itself in smart contracts. There is no need to worry about your funds as the blockchain is immutable. > > **4. Being actively developed** > > DeFi, being in its infancy, is still being actively developed. Hundreds, if not thousands of programmers, are working on various new platforms, applications, and other technologies each day. This means that there is more opportunity for it to grow in the future. > > **In conclusion:** > > While opponents of DeFi might question its unregulated nature, there is no doubt that educating others about DeFi is much more advantageous than just telling of its risks. > > TLDR: DeFi, as per its name, is decentralized, open, easier to use, transparent, and actively developed. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl2d/general_concepts_defi_proarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds.

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#DeFi Con-Arguments Below is an argument written by etj103007 which won 1st place in the DeFi Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users, but also making them fully responsible for their assets. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > Despite all these characteristics of DeFi, it has many major problems that make it unreliable and risky to invest in. > > # Cons of Decentralized Finance (DeFi) > > **1. Liquidity** > > Firstly, it suffers from liquidity problems. As most DeFi applications are new and/or still ramping up, they have to make people add liquidity to their pools. However, liquidity providers can be incentivized to move their liquidity to other platforms (thru the vampire attack, see [here](https://www.youtube.com/watch?v=UFjXwrCGuog&ab_channel=Finematics). > > Now, not every asset pair will have its own pool. So in swapping tokens, assets may take multi-hops, being swapped for different assets until you get the one you want. In the end, the user gets less or even much less worth of said asset than what they started with. While technically not a fault of liquidity, it definitely is one side issue caused by it. > > This also means DeFi will be volatile in the foreseeable future. > > **2. Difficulties in introduction** > > DeFi, while being generally easy to use and even having a lower barrier of entry, still doesn’t guarantee it will be used worldwide. While many would ignore this and simply say that DeFi is still in its infancy, it doesn’t excuse the fact that this would be the biggest problem for DeFi in the years to come. > > For example, in CeFi, you can freely trade coins on exchanges, and withdraw them with minimal fees. But in DeFi, you are usually limited to one coin and its layer 2’s. Even though bridges exist (both cross-chain and between L2’s), it still affects the user’s ability to transact. > > **3. Unregulated** > > Unlike in CeFi and CEXes which is (for the most part) regulated and abides by government regulations, DeFi will stay unregulated. Regulations will bring about safer markets and less risk for the average person. > > In DeFi, while being anonymous might be advantageous, it might go wrong in certain situations. For example, if some DeFi protocol collapses, there might be no focal person to pin incidents on. Sure, you may blame the developers or others, but what if they are anonymous? > > Regulation has mixed reception within the crypto community. Most, however, think that some regulation is good for crypto. Of course, a regulated DeFi is oxymoronic; you cannot centralize the power in a decentralized sector. > > **4. Risky** > > With DeFi is often called the “Wild West” of crypto; and with all the incidents of DeFi hacks, exploits and vulnerabilities, it doesn’t help at all that it is unregulated. Every week, there seems to be a new protocol hacked, smart contracts drained, and coins rug-pulled. > > But, even if you somehow have the most secure blockchain, the most secure smart contracts, and the most secured DApps, DeFi is still inherently risky. > > Of course, it should be noted that crypto, in general, is risky, but DeFi increases this risk due to: > > * Slippage – Inevitable, but with little liquidity, it becomes a fact of life. > * impermanent loss in liquidity pools –[see this binance article](https://academy.binance.com/en/articles/impermanent-loss-explained) > * Front-Running – bots that aim to make profit by looking at transactions. > * Rug pulls – While not limited to DeFi, most rugpulls do occur on DeFi platforms. > > **In conclusion:** > > While users of DeFi may say that it is still new and being developed, it isn’t a reason to ignore these problems. DeFi developers would need to solve these issues for it to prosper. > > TLDR: DeFi suffers liquidity problems, difficulties in introduction, is unregulated and inherently riskier than CeFi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl3u\/general_concepts_defi_conarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ghhlu\/daily_general_discussion_january_20_2023_gmt0/).

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#DeFi Pro-Arguments Below is an argument written by etj103007 which won 2nd place in the DeFi Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is Decentralized Finance? (DeFi)** > > Decentralized Finance, often shorted to just DeFi, refers to the emerging infrastructure of decentralized financial applications on cryptocurrency. > > Being decentralized, there is no middleman in your transactions. All are dealt with by smart contracts on the blockchain. DeFi allows users to perform existing financial applications on crypto without using centralized exchanges. This gives greater freedom to the users but also makes them fully responsible for their assets. > > All these, and more, will be explained in detail below. > > (NOTE: CeFi in this article will be referring to CeFi on cryptocurrency.) > > # Pros of Decentralized Finance > > **1. Decentralized** > > As per its name, DeFi is decentralized. This allows users to freely trade assets without going thru a third party. This is advantageous to users as it makes it open, easier to use, and generally anonymous too. See the next point for more info. > > **2. Open and easier to use** > > One of the biggest advantages DeFi has is the ease of use and generally lower barrier of entry. Both CeFi and DeFi have similar financial applications. However, most CeFi will require KYC to even use, and those without have usage limits. DeFi, on the other hand, does not have these limitations. DeFi will allow anyone to use its services, as long as they understand it of course. > > This allows anyone to use such platforms for whatever use they want. Loans are quite popular on DeFi. In getting one, there is no need to undergo background checks in DeFi. To the smart contract’s eyes, everyone is equal. As long as you have the collateral, the loan is yours. > > **3. Transparent** > > DeFi is built around smart contracts. It is not surprising that it is transparent, and much more so than CeFi. The blockchain is available to anyone; you can see the code itself in smart contracts. There is no need to worry about your funds as the blockchain is immutable. > > **4. Being actively developed** > > DeFi, being in its infancy, is still being actively developed. Hundreds, if not thousands of programmers, are working on various new platforms, applications, and other technologies each day. This means that there is more opportunity for it to grow in the future. > > **In conclusion:** > > While opponents of DeFi might question its unregulated nature, there is no doubt that educating others about DeFi is much more advantageous than just telling of its risks. > > TLDR: DeFi, as per its name, is decentralized, open, easier to use, transparent, and actively developed. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl2d/general_concepts_defi_proarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointe