What is DeFi Degens in Cryptocurrency?
Decentralized finance (DeFi) refers to alternative financial instruments that eliminate intermediaries like brokerages and banks using blockchain smart contracts. Individuals can borrow, lend, or trade without the bureaucracy typical in centralized platforms. Out of this industry, DeFi Degenerates or Degens have emerged as a group of crypto enthusiasts who are passionate about the sub-sector. They believe the space is the future of finance, and are working to build the infrastructure and applications that will enable this vision. Degens are a diverse group of people from all over the world, with a wide range of skills and experience. They are united by their belief in the power of decentralization, and their commitment to building a more equitable and accessible financial system.
What Are Stablecoins Used For?
Stablecoins are cryptocurrency tokens whose value is pegged on national currencies like the US Dollar. They are backed by a corresponding stored value of cash, or similarly pegged asset to ensure it maintains the value of an asset. For instance, the stablecoin USDT always has a value of 1 USD. Stablecoins help traders balance some risks from the volatility of cryptocurrencies and have become immensely beneficial in DeFi.
Are DeFi Degens good or bad?
DeFi Degens stands for DeFi degenerates. It refers to a subculture within decentralized finance who are, unfortunately, notorious for pump and dump schemes. This practice involves purchasing enough of a coin to make prices tick upward and get others to buy before dumping and leaving the remaining holders to bear the losses. The term degenerate is fitting because these entities cause losses for investors and create baseless hype around meaningless cryptocurrency projects. The distortive behavior affects legitimate projects which compete with the pumped-up projects.
What Are Degen Tokens?
These are tokens driven up by speculative traders without due diligence or real market research. The activity is either for pump and dump reasons or the fear of missing out (FOMO). Therefore, the prices go up artificially, only to crash when the DeFi Degens exit their positions.
What is Ethereum and DeFi?
Ethereum is the dominant smart contract blockchain. Its popularity means that most DeFi tokens use the ERC-20 standard. Therefore, Ethereum has a central role in the DeFi era, with blockchains like Polkadot and Cardano scooping up the remaining dApps. ETH gas fees are often the subject of debates among DeFi participants.
What is DeFi Gaming?
Decentralized gaming is a sphere within DeFi where individuals play and earn blockchain in-game items such as NFTs. It is a bridge between the two industries, enabling efficient collaboration that could not be done before due to geographic restrictions and language barriers. The sub-sector will enable both gamers and game developers to come together and work on new games. The team behind this movement aims to change the game development industry by allowing anyone to contribute to, enhance, or monetize any game assets in a fair and transparent manner. It works by not relying only on game developers but also by involving independent game asset makers and talents with their own followings. Eventually, DeFi gaming will make it easy for game fans and players to connect with talented game asset creators, giving them the opportunity to work on their own projects that can be used by big game studios.