- This topic has 0 replies, 1 voice, and was last updated 4 days, 16 hours ago by bigtiddies86.
- Monday, November 21st, 2022 at 17:07 #408044bigtiddies86Participant
It all began on a sunny day at HippoVille with a tweet :
After which Mr Roubini replies :
> Each time I hear someone talking about “yield generation” I am reminded of Ponzi scams such as Celsius, Genesis, BlockFi, Voyager, Gemini, FTX. “Lending” in crypto isn’t lending: it is high-levered bets on other shitcoins that go bust. So if BNB is “yield farming” run from it now
*Hmm this doesn’t seem entirely true does it ?!*
>Professor please, Speaking as huge fans of your past work on emerging markets, Allow us to explain that our Dapp is not lending nor using any leverage And unlike CeFI crypto XCHG/lenders such as Celsius & FTX A Dapp is based on immutable smart contracts(SC) in the blockchain
>For Hippo, our SC are simply automating actions on the BSC blockchain on behalf of users and to do that, we need BNB which is used to pay for gas fees required to perform transactions on the blockchain. This a source of organic demand for BNB besides disc trading fee
>Hippo vaults accept Liquidity Provider (LP) Tokens, which represent a pool at a Decentralized Exchange (DEX) like [PancakeSwap](https://twitter.com/PancakeSwap). We then perform several functions like auto-compounding the earned [$CAKE](https://twitter.com/search?q=%24CAKE&src=cashtag_click) token rewards to generate additional yields. The underlying token itself, can represent real world assets, Like our BUSD-USDC vault, where the yield is correlated to the # trading between those 2 pairs. BUSD and USDC are stable coins issued by Paxos and Circle respectively, they hold US treasuries to back their issuance.
>Other vaults like KRS-BUSD or HOOP-BUSD, are more speculative assets that represents in game tokens of Non-Fungible Token/mobile games. These types of tokens may or may not have unsustainable tokenomics however we at Hippo make no opinion on that and simply provide vaults of the latest in demand LPs.
>With that said, other yield optimizers (YO) in BSC do engage in very risky practice that involves using leverage or lending out the user deposited coins. These types of YO usually grow much faster due to being able to offer much higher yields however they tend to end abruptly. The point we are trying to make, You can’t paint with a broad brush over the entire space, the devil is in the details.
>Are there lots of unsustainable ponzis in BSC/BNB? YES
>Are all BSC Dapps Ponzis? NO, of course not, many do provide real world value
BNB has a legitimate use case and was really deflationary a few months ago.
Economist professors can be voracious readers despite remaining uninformed about current events.
He may be correct on many issues, but he is also human and will make mistakes.
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