Aug 33 mins read

Founder of Defi's YFI Warns of Unsustainable Prosperity in Defi

DeFi Market Insights

Founder of Defi's YFI Warns of Unsustainable Prosperity in Defi

The founder of Defi's YFI, Daiyifeng, spoke at a smart contract summit and warned that the prosperity of Defi is unsustainable, mentioning three leading value projects: synthetic asset leader SNX, mortgage lending leader COMP, and oracle leader LINK.

He explained that most Defi projects are essentially circle-playing games that generate income through holding coins, leading to a continuous rise in coin prices.


Although Defi has created a massive bubble, it has also contributed to the continuous rise in mainstream coins, as many projects like Bitcoin, Ethereum, and LINK accept lock-up investments. This has greatly promoted their rise in value, but also presents significant risks.

The two main risks include a mainstream coin drop leading to increased mortgage rates and forced liquidation, or Defi bubble bursting, causing mass coin redemption and a sell-off risk.


In conclusion, the leveraged bull market of Defi carries significant risks, and when risks appear, one should withdraw immediately to avoid market damage. The current trend is not healthy, and there is a possibility of a major risk release that will lead to a global downturn.


In terms of market analysis, Bitcoin is facing pressure and Ethereum is relatively strong due to many star projects using Ethereum as collateral. However, the current trend is not healthy, and there is a risk of a downturn that needs to be addressed.

Bitcoin vs Ethereum

DeFi Market Insights

Polka Ecological Tokens

Today marks the release of the tutorial "Dragon Brother's Coin Hunting Secrets", which introduces the easiest method for obtaining Polka Ecological tokens for free. Projects such as the Polka ecological star project, which locked 13,000 Ethereum shortly after its launch, thrive due to the continued strength of Ethereum.

HT Token

Meanwhile, HT will open up fast track listing channels, benefiting from multiple positive developments. LINK may not be a good signal for market leads, seeing a significant decline. LTC is seeing continuous increases in trust funds and may be good for speculation.

EOS Token

EOS still has potential while TRX may require a change in strategy at its pressure zone. NEST may be a risky investment due to it being primarily driven by speculators, but SNX has seen positive overall trends.

REN Token

REN is expected to see a second surge in growth. Ultimately, investors may need to adjust their strategies according to the constantly changing DeFi market, but long-term investments in Ether may yield positive results. This article is an opinion piece and does not constitute investment advice.

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