My little DeFi journey
Decentralized finance, or DeFi for short, has been gaining a lot of traction in recent years. It's a new way to access financial services without the need for a central authority. I've been on my little DeFi journey and I thought I'd share my experience with you.
Before the CoinFlex collapse and the emergence of SmartBCH, I decided to move to Bitcoin DeFi, thinking that it would do well. However, I quickly realized that Bitcoin's high fees and the limitations of the Lightning Network made it difficult for me to use. So, I went to Bitcoin Cash and adopted SmartBCH. However, I knew that the centralized bridge would become a problem, so I eventually moved back to BCH.
Thinking that DeFi on BCH worked for me, I thought that DeFi on Bitcoin would be a boom. But I was wrong, and it's been dying day by day.
No one told me that Bitcoin Cash had a sidechain, so I deduced that Bitcoin would have one too. That's how I found RSK and Sovryn. Unfortunately, that project is now dying a slow death due to the developers' focus on the future instead of the present.
I wouldn't recommend buying DeFi because it seems that regulation is coming for it, and that means only great fines and zero services from the government. If you want to buy DeFi, you will need to ensure that those behind the project are not US citizens and don't live in the US and that they don't sell or buy or allow US citizens.
The United States is similar to the UK when the car first came out. Those who buy good DeFi projects today will have to leave the US behind, and the US will deserve to lose just like the UK did when they made ridiculous laws against the car.
El Salvador recently passed a law for digital assets, which means the country is open for business. This means projects like Sovryn will do well within the country, as well as other DeFi projects. They are also going to create a "Volcano Bonus" with it and use that law.
I don't want to recommend Sovryn, but I would like to tell you to please learn how RSK Rootstock works, and decide if any of the other projects that RSK offers will be a good option for you, not just as an investor but also as a Bitcoiner.
I must declare that as a Bitcoin holder, you should look into what RSK has to offer because RSK is the closest you can get to being a Bitcoin sidechain. I don't think that Liquid and Stacks are sidechains. RSK has merged mining with BTC miners, and you need to hold BTC to pay for fees while the other sidechains don't. The Liquid network doesn't give fees to miners but to themselves, meaning they screw the miners and enrich themselves instead.
In conclusion, my little DeFi journey has been a rollercoaster ride. I've learned a lot about the various DeFi projects and their pros and cons. I hope my experience can help others make informed decisions about their DeFi journey. Remember, always do your research and never invest more than you can afford to lose.
Who Receives Liquid’s Transaction Fees?
Liquid transaction fees are sent to a wallet controlled by Blockstream. The fees are used in part to pay the Bitcoin mainchain fees required for L-BTC peg-outs from the Liquid sidechain to the Bitcoin mainchain and thereby indirectly facilitate free peg-outs for network users. Fees are also utilized to manage the Liquid Federation's mainchain BTC wallet.