This looks like a scam, the reason cub defi can provide aprs of 280% is because you are providing liquidity to other users. Defi platforms are also more trustworthy as they are ethereum smart contracts which means the assets are code secure and never actually leave your wallet. This is simply a Ponzi scheme where you deposit funds.
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I agree to everything you said exept the scam thing. I am not saying that this is a service you can trust and put thousands of bucks in it (and I definitely wasn't goind to do that) but instead it's just a fun way to farm some extra crypto with Hive-Engine tokens.
The team behind this project is MusicForLife Tribe on Hive, the 2nd most active tribe on Hive so as long as I get some returns I trust them with my 30$ worth of $Pizza tokens.
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Look like either one of is wrong here.
To whom Den provides the liquidity?
like Defi100 ?
Nobody is paying old users with the cash flow from new user, It's a fixed pool, more user the user will get less. Your investment will remain intact.(as per design.)
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Den's are a tax on in the system, all they are designed to do is increase TVL - they add no value and personally, I'd get rid of them.
I'd feel more comfortable putting my money into a smart contract that doesn't leave my wallet rather than a scheme where you deposit funds and get magic money, source: unknown.
The fixed pool where the rewards are paid in inflation... with seemingly nothing backing up the value of the token? Maybe deposited user funds?
This is what I feel, replied above.
https://leofinance.io/@r1s2g3/re-stayoutoftherz-3fvag1
So demand of their NFT(that require VFT to purchase them) ,deposit fees , (musician creating there brand NFT and paying fees in VFT , but not sure) is some ways can keep giving value to VFT but nothing is assured.
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So what value does holding user's funds provide exactly? Surely they'd be better off keeping the inflation of their token and selling it rather than giving it away to people for free essentially?
Every day 1000 VFT is minted(fixed in number) and distributed to pool holder in proportion to their Stake,
Yes, I get that. Why do they need people to deposit money though, what is the benefit to this significant financial security risk?
That's a valid question, depositor are at risk and everyone has their own calculation to invest in it.
Like knowhow say it is ok to take $30 risk. In my case risk is of almost $500 , but my personal trust on liuke and ML tribe , desire/greed of creating passive income is making making me to ignore this fact(depositor's risk).
I guess everyone has their own thinking to put the money on this.
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