How to thrive financially in DeFi？

Power and wealth are, in reality, accumulated from exclusions. Human beings operate in the form of a collective organization to outperform and keep out those who wander alone. In the realm of finance, holding an edge over others often means to have (1) better access to information, (2) greater research capability and (3) economies of scale.

All three can only be achieved by institutions.

Decentralized Finance is not the atomization of users, but an organizational pattern where retail investors work together in a spontaneous manner without forfeiting the ownerships of their assets.

The gradual decline of the memecoin sales entails the fact that DeFi investors are better educated in 2024 than they were 4 years ago, and they begin to prioritize assurance over pay-offs. Certainly one can make 1000X profit overnight by “Apeing” his/her life savings into a doge variant, but the faith and fund of those risk-takers have been drained by one rugpull after another.

Yield farming, the next “go-to” option after memecoin, improves upon the existing DeFi mechanism, and its grand scheme is more reasonable on paper. That being said, many don’t possess the adequate skills to study the target platform and its smart contract, and this could lead to total loss of assets comparable to that of memecoins. Essentially, investors tend to cut the “middleman” to avoid paying fees, but the cost and risk they end up bearing are actually way higher. For one, interest compounding is unaffordable for most individuals in terms of gas fee and time, not mentioning the risks.

The “middleman”, a yield aggregator, is what many people rely on for generating safe and stable passive income in DeFi. It pools individual assets to minimize gas cost, and is monitored by the professional analysts, algorithms and governed by DAO.