DeFi Degens

November 21, 2023 - Around 2 mins mins to read

Understanding DeFi Degens

DeFi Degens represent a unique facet within the DeFi ecosystem, characterized by unregulated and chaotic cryptocurrency projects that straddle the line between being a joke and a scam. While DeFi is renowned for its innovative financial services initiatives, DeFi Degens focus on projects that are often unaudited and built upon cryptic rules that are challenging for anyone other than the developers themselves to comprehend.

DeFi Degens congregate in private Telegram and Discord channels, where they share information about new DeFi projects that they believe can generate profits or simply provide entertainment. For many Degens, decentralized finance offers an opportunity to create projects that blend monetary concepts with elements of massive multiplayer online games.

These projects frequently involve the creation of obscure and unpredictable tokens, such as the ill-fated Yam token, which has become a symbol for DeFi Degens. Yam, for example, implemented regular token dumps every 12 hours, encouraging users to rapidly drive up the token’s value before cashing out their profits.

Participating in these DeFi projects without a comprehensive understanding of their mechanics can be risky, as they lack audits and regulatory oversight. However, Degens perceive them as enjoyable and potentially lucrative endeavors that push the boundaries of crypto code and challenge the norms of the crypto community.

DeFi Degens are often associated with the “pump and dump” trend, where low-value coins are artificially hyped up in private forums and channels, only to be abandoned or deliberately crashed once Degens have made their profits.