Vitalik Buterin will stay away from DeFi for the time being

 

The growth of decentralized finance (DeFi) has been so extraordinary that it raises concerns and caution in the crypto community. The last one to warn about this has been Vitalik Buterin, who said yesterday that he will stay away from Yearn.finance for the time being.

DeFi: Opportunity or Bubble?
DeFi lacks maturity
This year the Ethereum community has certainly been driven by the growth of the DeFis. However, it is this that has raised the caution of some of the industry’s leading experts.

Among them, Vitalik Buterin, the founder of Ethereum, has been the last one to assure that he wants to stay away from Yearn.finance for the time being until it is „established“.

This happened on Twitter after making reference to a tweet published by the account @spencernoon where it is pointed out that there is a large amount of Bitcoin Trader human capital entering YFI.

To that, Buterin responded by pointing out: „Personally, I will stay away from yield farming space completely until it is established in something more sustainable

Changpeng Zhao recommends caution with YFI

Everyone recommends caution
As mentioned above, Vitalik Buterin is only 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, Binance’s CEO, has recommended multiple times to his Twitter community to be cautious when investing in DeFi to avoid losing money.

„There may be a few (DeFis projects) that will survive and prosper. Don’t ‚follow the herd‘. You need to research and then choose. Be responsible for your own actions,“ CZ said on Twitter.

However, Vitalik Buterin has been quite skeptical about the DeFi space. In fact, he compared the economics of yield farming tokens to printing money from the Fed.

DeFi growth under scrutiny of new metrics

Where are you headed?
The DeFi space is in the middle of its birth and still has a lot to go through. Therefore, there are still many things that are not known and, in such a situation, the best advice will always be caution.

Even the crypto community is still studying how to really measure the space. Recently DappRadar reported that the metrics with which they had been visualizing the market could be inflated and therefore distorted.

So, yes, Buterin’s strategy of staying out of space for the time being is quite clever.