Fake dogs flying around the DeFi scene in Tron: It is difficult for public chains to enter DeFi
In the 27 days before the release of JustSwap, Tron never stopped promoting it.
However, JustSwap was a bit hasty on the first day of its launch: the launch time was delayed, counterfeit money was flooded in the early days, and even the corresponding "fake dogs" appeared for "earth dogs".
On the one hand, JustSwap exceeded $3 million in transaction volume within 3 hours; on the other hand, doubts and dissatisfaction with platform vulnerabilities are growing. In a community that was originally based on the concept of decentralization, the problem was finally centered on Justin Sun, the founder of TRON.
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The first scene of TRON DeFi: fake dog, absurdity, game in game
On the evening of August 18th, the launch of JustSwap, which is benchmarking against Uniswap, was postponed by one hour. After the official launch, a large number of user feedback began to appear in the WeChat community.
In just 48 hours, TRON's DeFi scene showed a "DeFi picture of all beings". The situation here is more exaggerated than Uniswap.
A bunch of counterfeit coins preemptively claimed the logo of the real coin icon and went online; someone left a message in the comment section of the project, diverting users to other projects; Accounts holding 999 TRX have issued 280 million "IGG"; even "earth dog" projects have appeared "fake earth dogs", and such projects are also called "deformed earth dogs" or "deformed earth dogs" by investors. "toy dog" has become a new way of self-deprecating in chatting.
"I bought a counterfeit currency, and I haven't slowed down, and then 1 minute later, the counterfeit currency has quadrupled." This is the self-report of an investor in the WeChat community after JustSwap went online. "Then sold it quickly, but died in the There is no amount, and finally reset, 5,000 knives are reset to zero, and my 5,000 knives are spent.
Another investor concluded: "Anyone can issue coins. They don't even need white papers and websites. The cost of scammers is too low. Playing on JustSwap, most of them lose money, even if they earn a few more TRX, TRX Still plummeting."
Someone also said: "This game is a gamble. If you lose, you have to admit it."
All kinds of absurd and even funny oolongs began to be staged. As incidents such as fraud, gambling, and game-in-game appeared one after another, the community focused its conflicts and attention on Sun Yuchen, the founder of Tron. In addition to being questioned and criticized by some people, some people also regard him as a firefighter who can save this situation.
In the early morning of August 19th, some rights protection groups were pulled up. Soon, TRON officials came forward to say: JustSwap is a zero-audit exchange, and issuing tokens on this platform does not mean official endorsement of the project. On the same day, the official release of "Brother Sun's Open Letter to the Coin Circle Regarding the Launch of JustSwap" relieved some community sentiment. Crack down on counterfeit money and maintain the health of the community.
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DeFi out of Ethereum?
"Now all public chains want to take the DeFi car. Obviously, the more users of the public chain, the higher the value."
The developer believes that this is the root cause of many public chain teams imitating Uniswap.
He is very optimistic about the combination of Ethereum +: “Let’s not look at anything else. At present, almost 80% of the star DeFi projects are running on Ethereum. You need to know whose money you are making, not from Asian retail investors, but from overseas. Institutional money. Taking YFI as an example, the current price is still stable. ETH’s Gas fee is a bit of a headache, but complaints are nothing but complaints. I still think that you should not buy DeFi projects on other public chains. Other uncertainties are too great , it is difficult to support it for a long time. Ethereum can come out of a project that can be supported for a long time, this kind of stability is very rare.”
"Shortly after JustSwap went live, Tether officially stated that it would cooperate with a third party within a few hours to migrate 1 billion USDT from TRON to the ERC20 protocol. This is good for Ethereum, whose status lies in Here, in layman’s terms, funds are being attracted to Ethereum.”
Looking at Ethereum + DeFi again, this combination is the result of long-term precipitation.
Since the peak of ICO in 2017, most of the fundraising tokens have been generated using the ERC-20 protocol, and these massive assets have become the basis. The diversified tokens have a strong interoperability here. At the same time, Ethereum-based stablecoins also occupy most of the market share, including stablecoins such as USDT, USDC, TUSD, and DAI, which are all generated based on the ERC-20 protocol. The stablecoin system of the Ethereum network can satisfy user asset mortgages and peer-to-peer lending Such as financial needs, this is an "open finance" in the early stage of the market.
In the past year or so, some decentralized exchanges have been established one after another, some of which have become important infrastructure for the development of DeFi. The interaction between new and old assets in the Ethereum system has formed a preliminary barrier to the DeFi ecosystem.
Overall, on Ethereum, the security, convenience, and high degree of consensus of asset swaps relatively weaken its lack of transaction speed.
Suppose you are a developer, would you spontaneously develop applications on a public chain with a weak consensus? The current situation that these public chains may face is: the infrastructure is not perfect, the funds are relatively lacking, the number of real users is insufficient, and the only amount comes from speculators.
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The public chain team is under pressure again
For the public chain, the beginning of 2020 is not easy. According to a 2019 public chain report released by TokenInsight, in the second half of 2019, the development of underlying public chain applications was lower than market expectations, and the return on investment of each project was negative. In the first half of 2020, when the market volatility is not large, many public chains have encountered some difficulties, such as insufficient funds, market turmoil, and poor ability to resist risks.
The mainstream public chains are also gradually accelerating the update speed of technology and applications in order to seek breakthroughs. Previously, compatibility with alliance chains, decentralized storage, and open finance were all hot topics among public chains.
According to incomplete statistics, the public chain projects that plan to enter DeFi include Tron, EOS, NEO, Nervos, Polkadot, Cosmos, NEAR, Algorand, Avalanche, Solana, Conflux and so on. As for Tron, which launched JustSwap at the fastest speed, this first show has also received the attention of other public chains, and to some extent, it may have also dampened the confidence of other public chains to enter DeFi.
Also anxious may be the public chain team of the exchange.
Yang Haipo of ViaBTC recently publicly commented on social platforms: "DeFi is not a temporary craze, but a concept that runs through the entire current bull market cycle. DeFi is not a single currency, but an evolutionary process of my debut this time. Stablecoins will destroy the life of traditional payments. USDT has a market value of only tens of billions of dollars. What is surprising is that the market value of stablecoins trillions of dollars is just the beginning. In the future, the entire banking system will be built on the blockchain. DEX will destroy absolutely For most of the exchanges, UniSwap is just an initial test. The model and experience around DEX are rapidly evolving. The number of users and transaction volume of DEX will soon exceed that of CEX, and tens of thousands or even millions of assets will be stored on DEX. on issue."
A popular saying in the currency circle recently is: "Ethereum miners harvest farmers' fees, farmers harvest Uniswap leeks, Uniswap leeks harvest small exchange leeks, and small exchange leeks harvest the last listed exchange leeks." Although this statement is a bit extreme, it can be seen that the exchange is not dominant here.
In the face of this situation, the exchanges represented by Gate have already taken action, instead of relying solely on listing coins, Gate issued an announcement stating that "it will engage in DeFi on its own public chain and make money to buy back platform coins."
After JustSwap, can the exchange public chain team bring a new round of topics? This requires us to wait.
