I have been trying to learn more about DeFi lately because I realized I was a bit stuck in time with knowledge there. This field moves way too fast, and it only takes a couple of months for things to change completely. If you don't keep up, you risk missing out on many opportunities that come with new development.
Admittedly, this is my situation right now. I came to the sad realization that my current knowledge of the DeFi arena is very outdated and not compatible with many of the new platforms, assets and strategies that exist today.
Not that I was an expert before, but at least I used to have a good idea of what was going on, which is no longer true.
Introducing DeFi with science
Before I go on and explain what this is all about, I must say I'm not 100% sold on this name. I'll start with that because I can't think of anything better right now but that could change anytime.
Why DeFi with Science?
As an engineer by training, I take a real interest in learning how things work "under the hood." The depth of understanding may be different depending on the subject, but I always try to have at least minimal knowledge of the technology, mechanisms or rules that make things work.
One thing I realized about some of the people I know who are into crypto is that, when they are asked about why they did buy asset X or sold token Y, they often say things like "Oh, I just went with my gut" or "I saw another guy do it and so I did the same."
I don't think that's necessarily bad, especially when things go well. As the saying goes "It's better to be lucky than good," am I right?
The only problem is that I would like to reproduce strategies that lead to good results and luck is hard to reproduce consistently.
As I said in a recent article, good decisions are those that statistically lead to good outcomes and, therefore, can be repeated over time for maximized success. It's very clear that, by this definition, relying on luck is the complete opposite of a good decision, which means it's a no-go for me.
Recommendations are slightly better and more reliable but you still need to make sure that the person you are taking recommendations from knows what they are doing and that's not always the case. Take Twitter influencers and their memecoins, for example. The vast majority of them promote dead tokens.
The old crypto adage still stands: "Do Your Own Research".
With that in mind, I decided to create the "DeFi with Science" series, where I'll share in varying degrees of depth how things work in the world of decentralized finance.
The word "Science" was chosen to represent the idea of understanding how things work. This does not necessarily mean I will provide intricate explanations of all the technical aspects of DeFi. It merely means I'll try to apply science to my reasoning and stop doing things only because I saw someone else do them.
Final thoughts
One of the best ways to learn something new is by teaching it to others, and that's what I plan to do with this series. I would not dare to think I can teach anyone about DeFi, but I hope the attempt provides some value to myself and anyone who reads my articles.
I'll try to maintain some consistency in the "episodes" of this series, but I will not commit to a fixed schedule. I'll write about things when the timing feels right and I want to remain flexible to adapt my schedule in case something super relevant happens in the DeFi universe.
Posted Using INLEO
🤔😎🤙 when I think defi, I think tokens.. am I wrong? and there are so many other, bigger areas of financial trading and investing.. that are not those things much more profitable? ie. defi is but the smallest fraction in market cap, vs. something like stocks or futures..
Tokens are definitely part of it! But there is more to DeFi than just the tokens. It's much smaller than traditional finance but not necessarily less profitable. If that was the case, we would not have those huge institutions going balls to the wall on Bitcoin, for example!
i see. 🤔👊
Things in crypto do indeed move and change fast,
Inleo is a great example. A short while ago it ws Leofinance and FInance focused.
Now the UI, focus on finance and focus on longform posting has changed.
Good Luck,
I will swing by to see how your doing.
I love to read others summaries of changes.
Thank you!