The crypto market is witnessing a massive bull run initiated by the growth of the DeFi space. While the surge spilt positive liquidity in altcoins as well, the gains in non-DeFi tokens have been minuscule. Moreover, the rise is not going unnoticed within the Chinese crypto community as well as they are beginning to FOMO in quickly.
Dovey Wan, leading crypto analyst and founding partner at Primitive Crypto shared the developments in the DeFi space in China. She notes that the Chinese forks are being made more user-friendly and accessible to the masses. She tweeted,
Mobile version Balancer launched for YFII hahahahah pic.twitter.com/FrbgUTmNMg
— Dovey 以德服人 Wan (@DoveyWan) July 29, 2020
The Chinese Touch
There are multiple DeFi pools which just keep on adding another ‘I’ to their name. The liquidity pool design of Yearn Finance (YFI) is being forked by name in China as it launches YFI, YFII, YFIII and so on. She added,
not sure how this will mutate and evolve in China, but all tier 2 and 3 CEXs in China are so FOMO and trying to launch their own version of YF()
The Chinese might have entered late into this space, but Wan notes that the Chinese are already tweaking in their customizations into making the applications more user friendly.
They have even initiated derivatives trading of their new DeFi tokens. For e.g., Wan pointed out the addition of YFII perpetual swap support, she notes,
…. this is how Defi ends up with Cefi … Perp swap of YFII is coming on a Chinese Cefi …
Bulls Back On
Meanwhile, the growth in the original YFI token seems to be picking up momentum again. Josh Roger, crypto trader and analyst tweeted,
At the same time, YFI may have dipped – but if it holds this current support and reclaims over $4,134 This could continue back up to over $6k
He further notes that the original projections of a surge to $10,000 per YFI is also probable.
As mentioned earlier on CoinGape, the way return is being accumulated across DeFi pools smells of Ponzi. However, the growth of such design on the back of decentralization could continue for a long-term due to the absence of risk of cashing out from controlling parties. As the Chinese being to flood the market now, Wan tweeted,
If a ponzi design reveal its ponzinomics publicly so each participant can DYOR (FOMO3D, $AMPL, partial of $YFI) A ponzi scheme intentionally defrauds ppl with seemingly legit claim but in fact sustains profit with new principal
Do you think the Chinese DeFi entry could pave the way for another DeFi leg up? Please share your views with us.