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21463715 No.21463715 [Reply] [Original]

So in basic terms DeFi is ERC-20 but instead of usecases like supply chain, energy, utility tokens, ETH killer, etc its usecase is just being a way to get rich quick through tokenomics and provided liquidity? Is liquidity with the smart contract poof'd out of thin air or does the smart contract creator provide their own ETH? It's starting to make sense but this is a different landscape to navigate. Seems smart and also retarded.

>> No.21463775

>>21463715
no moron. it's literally a parallel banking system created on a blockchain

>> No.21463877

>>21463775
I can kinda see where that ties in, why are ERC-20 shitcoins based on DeFi relevant? The concept of pooling makes sense a little bit, with the contract deciding to burn/reward etc based on transaction fees, liquidity provided to the token and whatnot. I feel like I'm learning how Ethereum works all over again.