The growth of decentralized finance (DeFi) has been so extraordinary that it raises concerns and caution in the crypto community. The last to warn about it was Vitalik Buterin, who he pointed yesterday to stay away from Yearn.finance for the time being.
DeFi lacks maturity
This year the Ethereum community has certainly been fueled by the growth of DeFis. However, it is this that has aroused caution in some of the most important experts in the industry.
Among them, Vitalik Buterin, the founder of Ethereum, has been the last to ensure that he wants to stay away from Yearn.finance for the moment until it is “established”.
This happened on Twitter after referring to a tweet posted by the @spencernoon account where it is noted that there is a large amount of human capital entering YFI.
To that, Buterin responded by pointing: “Personally, I will stay away from the yield farming space entirely until it becomes established in something more sustainable …”.
All recommend caution
As we mentioned earlier, Vitalik Buterin is just the latest character in the industry who seems to have a cautious approach to the DeFi space.
Previously in CryptoTrend we reported that Changpeng Zhao, CEO of Binance, has recommended multiple times to his community on Twitter to be prudent when investing in DeFi to avoid losing money.
«There may be a few (DeFis projects) that survive and prosper. Don’t ‘follow the herd’. You need to research and then choose. Be responsible for your own actions“CZ noted on Twitter.
However, Vitalik Buterin has been quite skeptical when it comes to the DeFi space. In fact, he compared the economics of yield farming tokens to Fed money printing.
Where is it headed?
The DeFi space is in full swing and still has a long way to go. Therefore, there are still many things that are not known and, in such a situation, the best advice is always going to be caution.
Even the crypto community is still studying how to really measure space. DappRadar recently reported that the metric with which the market had been viewed could be inflated and therefore distorted.
So yeah, Buterin’s strategy of temporarily staying out of space is pretty clever.