Post
Topic
Board Tokens (Altcoins)
Re: [ANN][IDO] DECENTRALIZED LENDING, GOVERNANCE, AND FIAT LIQUIDITY DAPP
by
cordasco
on 04/09/2020, 19:01:59 UTC
the biggest risks of DeFi applications is,The smart contracts could be hacked.There could be a backdoor that allows someone to steal all of  keys. What is the backup plan for this you have.Because we have to trust this and we need reason for that.
Regardless, a “run on Compound” is less likely to happen than a bank run. Bank runs usually happen because of banks’ financial mismanagement. And people don’t know about that until it’s too late. Due to the transparent nature of blockchain, users would probably spot anything fishy way before any run on Compound.
Not to mention Compound’s high interest rates for lenders, near-instant interest payments, absence of loan terms or penalties, and accessibility by anyone anywhere make it too good to pass up on. Especially compared to boring old banks.