DeFi Karma
DeFi has already taken the world by storm, but I think it's just getting started.
In the past, when a new trend that seems inevitable has occurred, I've often made the mistake of believing that it was cycle top.
SaaS is a good example -- and this was when I started using salesforce.com at my start-up.
But SaaS was just getting start and it couldn't to grow at a rapid pace.
Bitcoin was similar....by the time I heard about it in around 2016 (or so), I assumed it already became a thing; but it was just getting started, and in fact, had alot more adoption. Now that it's an ETF, I'm not so sure, but maybe it still can.
The landscape of DeFi that Bitcoin has ushered in still has its bugs and worts to work out, but it's also going to be mainstream.
In fact, I may include memecoins into it, as well.
Most people think that it has no utility, and they don't right now The Memecoin Utility. But they will.
Anyway, DeFi has become a term I hear all the time, but I haven't truly dug in and tried different things, so I'm going to start to do this. I'm way behind all the crypto natives, but I am hoping that this will help me to onboard future users.
As with many spaces, it's very "crowded" but I've also learned, those can be good one to stick with and stand out in by being consistent and providing clarity.
Right now, DeFi seems to have accelerating and growing usage and awareness. But I suspect that it remains small relative to traditional finance.
In the traditional finance world, people are educated around different ways to handle credit, loans, investments, p2p loans, real estate.
What is the goal?
In the same way that traditional finance blogs and websites helped consumers to understand their financial options, I'm trying to do the same for DeFi.
Some of those ended up primarily being product reviews and comparisons (which credit card is better, for example).
Those are both valuable and tedious given the options.
Some have been helpful in terms of how and why to use a given approach.
For example, the websites that explained DCA, comparing the value of investing in buying or renting a home, and so forth. Those are financial strategies, and I suspect they could be largely similar, but with different vehicle.
The last is one that I think remains to be seen, which is new vehicles (versus specific project investments).
A vehicle could be, say, restaking. Project investments could be specify a token.
The latter seems more akin to "stock picking" and .... there seems to be alot of shillers around already.
This is an area I'm not sure I would delve into.
This type of writing seems like it will be akin to "Seeking Alpha" and all the other stock picking.
It does seem like this has been a lucrative approach. The "Motley Fool" is a good example of this.
But indexing the market has largely worked for stocks; I suspect it will be similar once DeFi matures.
What will be the unique approach?
This I am still determining.
Right now, I'm not an expert; I'm an aware person, trying to get started and going deep.
So perhaps it really is to begin with a review-based approach.
For this, I would like to participate jointly with the providers.
With DeFi, being able to inspect publicly what they do and how they do it is a huge, perhaps the primary, benefit of DeFi over TradFi. The opacity of TradFi is definitely for their benefit, at the cost to consumers.