DEFI is full of nesting dolls, exchanges are fighting each other, and the enlightenment brought by the red and black business war is comprehensive

The long-awaited DeFi bull market is like a blessing to people in the bear market. A lot of funds have entered the market, and various projects have been launched desperately. When the bull market comes, all kinds of funds have become active, and there is peace and prosperity.

After more than two months of this trend, DEFI ushered in its biggest adjustment so far. Various liquidity market-making rates have been lowered, the mined coins have been sold by various farmers and scientists, the coin prices have plummeted, and the market has entered a correction.

Of course, as a measure to keep DeFi alive, mutual nesting between DeFi projects is crucial. We believe that if there were no nesting and imitation projects, all kinds of DeFi might have collapsed at the end of August, because there were already some signs at that time, but these nesting projects have basically contributed to its persistence until now.

The Battle of Red Cliffs can well explain the risks of the nesting doll project, but centralized exchanges have not united

Although this kind of mutual connection and mutual development does have great power, once structural adjustments occur, naturally no one can be immune to it, and greater lethality will inevitably occur.

However, retail investors have at least tasted the meat. As for whether they can escape, or how they can escape, that depends on their own ability.

On the other hand, on the centralized exchanges side, the situation has continued as before. Once a situation arises, they start to fight. You expose my scars, and I tear off your fig leaf. It is so lively, and many spectators also bring their stools and come to watch the show with relish.

For example, today, many people have seen constant quarrels on Weibo regarding Binance's public chain DeFi project and OKEx's DeFi activities. In fact, the purpose is the same, which is to harm the opponent, but what is the result? Maybe the third party will win the final benefit, which is not a good thing for the market or for themselves.

The whole story is actually very simple. It is mainly because Binance has launched a new public chain based on Ethereum. We will temporarily assume that it is a modified copy. The DeFi project on it has been complained by some people. Some people found that they made too little money after participating in it, and of course the experience was average. Binance Smart Chain is indeed developed based on Ethereum, which is understandable. After all, it is unlikely to redevelop a completely different public chain in a short period of time. The Binance Chain is based on Cosmos, and there are not many DeFi projects on it. Therefore, in order to layout DeFi, Binance can only issue Binance Smart Chain based on Ethereum, so that all Ethereum projects can be migrated to Binance.

This is the essence. People who understand it will naturally not over-hype it, because the technical content is not high. However, this made some people jealous of OK, so OK Jay Chou refuted it, and then this was the fuse. After all, OK's DeFi is indeed not as good as Binance's public chain. You must know that the OK public chain has not been officially released yet, and the team has been holding back its big moves, so naturally people will give it a handle, and finally a war of words on Weibo broke out. For this war of words, the OK public chain was specially renamed OKEx public chain, and promised to distribute OKT to everyone at a 1:1 ratio according to the number of OKBs. For a time, the price of OKB also skyrocketed. Of course, it has basically fallen back now.

This is what happened. As a third party, Huobi has remained silent. Huobi’s public chain has also been promoted before, but I think keeping silent can avoid disputes. However, it has also hurt the hearts of many Huobi fans. After all, Huobi’s public chain has been silent and the price of the currency has gradually been surpassed.

Before this, Binance and OK have always been at odds. This is a recognized fact in the currency circle. This kind of mutual attacks has been going on for more than a year and a half since 2019. In fact, the audience has probably eaten a lot of melons, but what will happen in the future? I think there is a high probability that they will continue to fight. After all, not all bigwigs are willing to drink from the cup of wine.

This naturally means that it will be difficult for the exchange market to develop. Now is still a chaotic period. As long as everyone is not united, the bull market will not be very solid.

In fact, this is a question about human nature. In the management of many companies, the team will play a game called "Red and Black Business War" to make everyone understand that cooperation and expansion of the market are the key, rather than internal fighting and mutual distrust.

The game Red and Black Business War is very popular abroad. It has been spreading in China in recent years and has indeed achieved very good results in internal team training for enterprises. The game is currently being disseminated in China and there are many versions, but the core is the same. Friends who are interested can search it on Baidu. It is also a good idea to invite a few of your friends to try it out.

The main reason is that this game actually imitates, to a certain extent, the competition and cooperation between several peer companies in a market. As long as peer companies continue to compete and do not trust each other, this will inevitably lead to the market not becoming bigger and stronger. At the mildest, unicorns will be produced, one company will be full and the others will starve to death. The market will become smaller and smaller, and it will inevitably not tolerate the existence of other competitors. At the worst, everyone will starve to death, and no one will do well. As a result, the industry will naturally be torn down and rebuilt. To put it simply, this is to make money from competitors.

On the other hand, if peers trust each other and work together, the effect is actually different. First of all, there will certainly be competition for the first place, but the market will be bigger and stronger, so the second, third and even the younger brothers behind will actually have a good life. At least they have net revenue and are guaranteed not to go bankrupt. The industry will naturally develop and prosper, and become bigger and bigger. To put it simply, it is about making money from the market.

So, is it to make money from the market or from competitors? This is actually a test facing the exchange.

Centralized exchanges must be controlled by humans, so human factors are the biggest uncertainty. Corporate culture is the hobby of the company's founder, and corporate decisions are actually made by the company's founder on a whim. This is what Zhou Hongwei of 360 said. In other words, anything centralized is actually inevitable to compete with peers, and then price cuts, and finally the market becomes smaller and smaller, resulting in no one making money. When the bear market comes, they all go bankrupt.

In the decentralized world, this becomes another way of playing, because the founders do not have the final say between the projects, and there are not too many patents or other restrictions to constrain them. So I can easily map your LP token and then send related tokens to my users. There is no legal risk in doing so. Therefore, this has formed a habit of mutual nesting, which has led to everyone starting this model. In the end, the DeFi market is getting bigger and bigger, the participants are getting more and more benefits, and the opportunities will continue to increase.

It now seems that even for the DeFi projects on the EOS chain with the worst returns, the mainstream ones basically do not have an annualized rate of return lower than 100%. In centralized exchanges, 100% annualized rate is already quite high. The fundamental reason is that decision makers are not trying to make the cake bigger, but to grab the cake from each other. After all, focusing on grabbing users from each other is really a very stressful thing.

If you hurt the enemy by a thousand and hurt yourself by eight hundred, it will eventually have a negative effect and accelerate the demise of the market. Of course, at present, all this is just a matter of time.