Binance Block 101 | Debate: DeFi vs. CeFi with Su Ye, Founder of BlockArk
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Binance Block 101 | Debate: DeFi vs. CeFi with Su Ye, Founder of BlockArk
"The endgame of DeFi should be very clear: DeFi will eliminate all second-tier exchanges, leaving only top-tier centralized exchanges and DeFi."
Navigating Web3 tides with focused insights
On September 2, 2020, Jess, Head of Binance Broker BD, held a live dialogue with Su Ye, Founder of BlockArk. During the livestream, Su Ye shared insights about DeFi projects he has participated in and revealed some wealth-generation strategies that many viewers were eager to learn.
Su Ye believes that the Automated Market Maker (AMM) mechanism is the most suitable model for decentralized exchanges (DEX), effectively solving liquidity issues for long-tail assets. Currently, Ethereum gas fees have become nearly unbearable, making TRON-based DeFi a potential next value haven. When cross-chain protocols led by Polkadot achieve widespread adoption, the true bull market era for DeFi will begin. Ultimately, DeFi will evolve into a fully mainstream phenomenon. Regarding the bull market, Su Ye noted that corrections are inevitable—even past bull markets have experienced sharp drops. These declines signify sufficient turnover and accumulation of strength before further upward movement, meaning the DeFi bull run will continue.
Binance Smart Chain is also launching cross-chain capabilities, aiming to integrate CeFi and DeFi by leveraging CeFi's strengths to enhance user experience in DeFi. On the open decentralized platform of Binance Brokerage, active expansion is underway, offering brokers order-matching systems, account management, and settlement systems while sharing Binance’s deep liquidity.
Guest Insights:
"A friend once asked me who can make money? I said two types: one is those who completely don't understand but jump in anyway, and the other is those truly visionary individuals who see the future clearly. Ordinary people like us can only capture a small portion in between—that's why constant turnover happens, which ultimately allows prices to rise so dramatically."
"We say 'three days apart feel like three autumns,' but in blockchain, you don’t even need three days—after just three hours, the entire industry may have changed drastically."
"DeFi marks a turning point from the past decade where cryptocurrencies were driven purely by narratives. In 2020—the 11th year of digital currency—we finally see real blockchain applications. While not fully matured yet, there are now actual users, capital inflows, profits, and usable products being built. This represents a breakthrough innovation within DeFi."
"Yield farming is an extremely stable way to earn returns. Unlike trading, which inevitably involves drawdowns, yield farming allows large-scale participation with steady, guaranteed income regardless of market conditions—as long as proper hedging is in place to protect principal. As long as the project doesn’t rug pull, your earnings remain secure."
"The endgame for DeFi is very clear: it will eliminate all second-tier centralized exchanges, leaving only top-tier centralized exchanges and DeFi."
"A constantly rising bull market isn’t as healthy as one with sharp corrections. A crash actually provides the opportunity for profitable capital to exit and new capital to enter—a necessary turnover event. Without such crashes, new funds would never come in. Therefore, this kind of volatility is a relatively healthy and normal market behavior."
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Binance Jess: Welcome everyone to today’s livestream. I’m Jess from Binance Broker business—you’ve probably seen me on many previous streams.
Today we’ll take a rational look at the recently exploding DeFi space, discussing its technology, liquidity, and the pros and cons of CeFi with our guest expert Su Ye. He is the co-founder of BlockArk, a company growing rapidly and recognized as an early investor in DeFi, packaging numerous DeFi projects and maintaining strong ties with overseas communities. Su Ye, please introduce yourself briefly.
Su Ye: My name is Su Ye—many of you might have seen me in various communities. Our company, BlockArk, focuses on investment and integrated marketing for blockchain projects, somewhat similar to investment banking services.
As for DeFi, I entered the space quite early and have been actively involved since May. I've managed to catch several major opportunities along the way. Recently, I even changed my WeChat profile picture to include sushi because our entire team is excitedly farming SUSHI tokens—it's been great fun.
I'm thrilled to join Jess here today to share thoughts on DeFi. The distinction between centralized and decentralized finance is something many people discuss frequently, and I’d love to share a few personal insights.
Binance Jess: Let’s start with a simple interaction. Could you share how you first got involved in the blockchain industry? What did you do initially, and how did you progress to where you are now?
Su Ye: Back in 2015, I was still studying when a senior classmate gave a lecture saying blockchain was the foundational technology behind the third internet revolution. He talked mostly about cryptography—I didn’t hear anything then about Bitcoin multiplying in value. So while I found it fascinating, I didn’t immediately dive into the industry. Early on, I worked at PwC and Accenture.
In 2017, the market heated up. I was in Shenzhen at the time, where many projects were doing roadshows. Probably because I invested in some coins that appreciated significantly, I realized this industry offered both innovation and profit-making opportunities—so naturally, I joined full-time.
My first role was at DailyCoinRead, a now-defunct but highly influential company back in 2017. We started operations in September 2017, publishing many well-known blockchain articles. At the time, we mainly evaluated projects and made investments ourselves.
By 2018–2019, we gradually shifted toward becoming an investment firm and integrated marketing agency. Projects like Band and Ankr, which are frequently traded on Binance today, were among the first we introduced to the Chinese market through marketing efforts. Now, our work is broader—we focus on investing and helping portfolio companies grow their markets. We’ve also established China’s largest DeFi community, likely familiar to many of you: the Uniswap Chinese Community.
Binance Jess: What projects are you currently watching? Can you share a few early-stage DeFi projects you’ve participated in?
Su Ye: For example, back in May, almost no one was using Uniswap—its daily trading volume was only hundreds of thousands of dollars, less than 1/500 of what it is today. There were very few projects listed—only around ten active on Uniswap each day. I used to scour Twitter every morning looking for posts related to Uniswap. Since early adopters were mostly foreigners and influencers, I gathered information daily.
After collecting data, I analyzed each project’s smart contract, website, and community development. Many successful projects emerged during that period. Take SWAP, for instance—many of you may have used Trust Swap. It’s now listed on several tier-two exchanges, though not yet on Binance.
That project was wild—I discovered it one morning around 9 AM while researching. I noticed it had launched at 2 AM and within seven hours had already surged fourfold, reaching a $1 million market cap. I thought, “Too late,” and decided not to participate. But it later rose to $50 million—up 100–200x from launch.
At that time, Uniswap was still in its wild west phase. Its liquidity pools followed Bancor’s constant product formula. If early projects deposited minimal ETH into the pool, you could buy massive amounts of tokens with very little ETH.
A friend of mine participated in another project called UNC, focused on underlying Uniswap pools. Many of you may have heard of it. He invested over 10 ETH and earned a 400x return. Such high gains occurred partly because initial liquidity pools were shallow, allowing small investments to acquire large token quantities. Of course, the project itself turned out excellent, contributing to its subsequent rise.
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Binance Jess: Liquidity is another key topic we want to explore. As you mentioned, early DeFi participation meant shallow pools, leading to extremely high returns for early farmers. However, retail investors unfamiliar with yield farming often buy these tokens directly on centralized exchanges.
So let’s compare the advantages and disadvantages of CEX versus fully decentralized DEX platforms. One reason DEX failed earlier was severe liquidity shortages and poor user experience—slow transactions or prohibitively high gas fees. Yesterday, Binance officially launched Binance Smart Chain.
BSC is part of Binance’s DeFi ecosystem strategy, aiming to advance CeFi and DeFi side-by-side since both have unique strengths and weaknesses. For example, mining-related gas fees can be extremely high—I saw some reach $400 today.
Su Ye: Right before entering this stream, I executed a few trades during a price drop and quickly withdrew some assets. During the crash, average gas spiked to around 800 GWEI—roughly 0.08 ETH per transaction, costing $20–30. For ordinary users earning a few hundred yuan per day, two transactions wipe out a day’s wages. It’s become extremely unfriendly.
You brought up a good point—why did Uniswap manage to increase trading volume 500x in three months, while earlier DEX attempts like Binance DEX or 2017-era platforms failed despite better UX?
The answer lies in the AMM mechanism, which is uniquely suited for trading. Normally, buyers and sellers place orders. If the bid-ask spread exceeds 20%, you wouldn’t trade. But AMM DEX forces market-making—every participant becomes a liquidity provider, much like exchanging currency at customs. You don’t wait for someone else to sell you RMB; you exchange directly with the counterparty.
This mechanism truly opened the door for decentralized exchanges and Uniswap specifically. It solved liquidity challenges for long-tail assets—tokens with $100K or $500K market caps. On order-book exchanges, bid-ask spreads for such tokens easily exceed 20%. With AMM DEX enabling continuous pricing, user activity flows naturally.
However, Ethereum transaction fees have reached unaffordable levels. I’m very bullish on TRON. TRON operates similarly to EOS—if you hold energy, transactions are instant and fee-free. Yesterday, MXC and Gate began listing TRON-based projects. JustSwap’s “TRON Triad” averaged 10x gains, and TRX itself rose ~50%. Capital is starting to flow into TRON. Regular users can no longer afford Ethereum—it’s becoming a playground for whales.
Binance Jess: Speaking of quality assets, tell us more about specific projects you’ve engaged with—like Sushi. Share the story behind Sushi.
Su Ye: Over the past three months, I’ve interacted with roughly 200–300 different tokens on Uniswap—there have been so many.
Let me categorize them. First, JST—something many of you know. When Sun Yuchen launched it, we bought in. But the token stagnated for two months without moving. Then, as you’ve seen, it suddenly surged 20x in a month and eventually listed on Binance.
This was a heavily weighted position for our company—and the reasoning was simple. In 2019, the market was freezing cold. Many companies faced closure—including ours. Everyone was short on cash. Binance’s first Launchpad project was BTT. I remember nobody wanted it—people refused allocations when they heard it needed to raise over $6 million.
Back then, the sentiment was terrible—$6 million seemed too high, expected to dump immediately after listing. We took a leap of faith—Binance wouldn’t risk damaging its reputation with its inaugural project—so we participated in BTT. It was easy to get—around half of 20 accounts we manually submitted succeeded. We weren’t confident—hoped for maybe a 50% gain. But it opened 3x higher. If you ask me which coin sparked the 2019 bull run? I’d say Sun Yuchen’s BTT.
There’s a concept called path dependency in trading—gains and losses share the same root. If you profit from futures, you’re likely to lose from futures too. We profited from BTT, so when JST launched, we doubled down. Brother Sun is already financially free—he works hard daily, clearly not planning a quick exit.
JST was priced very low—we bought in at ~$7–8 million market cap, now over $100 million. We believed the valuation was reasonable.
Still, we suffered up to 40% paper losses initially and saw no movement for two months. On July 2nd, it formed a small green candle, rising to $0.007—a 20% jump. We sensed momentum building. From that day forward, we kept promoting it. By August 2nd, it had risen 10x. A few of us regained our Q1 asset peak, and everything beyond that became pure profit.
Recently, YFI and YFII left deep impressions—we participated from day one of their mining launches. Back then, few understood the model—they called it Yield Farming, i.e., mining.
I farmed YFI for about two days, sold near 1x profit—at around $2,000–3,000. Now it’s $30,000—I thought I’d done well. For YFII, we rushed in at midnight on launch. It was worth $50 then—rose to $500 in two days.
We panicked—“What project jumped to $500?”—and sold quickly. After selling, it hit $1,000, then listed on Huobi and Binance, now nearing $3,000. We kicked ourselves hard.
Given how much DeFi we play, many assume we’re raking in huge profits. Not really—we keep missing waves.
Someone once asked who makes big money? I said two kinds: complete newbies who blindly charge in, and ultra-visionary experts who see the future. Average people like us only get a small slice in between—that’s why constant turnover occurs, enabling massive overall price increases.
We were also in the first wave of YAM farming. But due to a contract flaw, it crashed—losing over 90% in under 24 hours. We created a group called “Sweet Potato Gang.” Sadly, within a day of founding, it collapsed—huge losses. We farmed YAM’s second pool, which exposed us to principal risk.
Then came Sushi. Originally, I planned to travel Sunday—but right before hitting the highway, my partner urged me to start farming Sushi. I checked it out. Essentially, if you provide liquidity to Uniswap, Uniswap rewards you—but Uniswap itself has no token.
Sushi’s team was clever—they said, “Uniswap lacks a token. If you provide liquidity on Uniswap, we’ll give you our token.” For the first two weeks, they distributed 10x tokens. Providing liquidity on Uniswap carried no risk. They had about 10 pools—all solid projects like COMP, LINK, BAND—nothing shady.
I instantly recognized the strategy—it mirrored FCoin’s 2018 model: liquidity mining. Exchanges rely heavily on market makers. But market makers earn only slivers. If you reward them with equity or tokens, it becomes highly attractive.
I recall clearly—I bought Sushi at 1.2 USDT on Sunday. Market cap was only $30 million—seemed safe. I deployed significant capital as a miner, focusing on Band, ETH, and UMA pools. Then yesterday, Binance listed it—price soared to 15 USDT, up over 10x in two days.
You might believe in a project’s potential, but rarely expect such explosive growth. The old saying goes, “Three days apart feels like three autumns.” In blockchain, you don’t need three days—after just three hours, the whole landscape shifts. That’s why when friends ask if I’ve seen recent projects, I often haven’t—only non-stop 24-hour monitoring lets you cover 30% of the market.
These projects stand out vividly—but Sushi was the most impressive. Can Sushi go higher? I can’t predict—but its market cap will keep growing. I’m still holding.
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Binance Jess: You’ve recommended Sushi and shared early participations. Have you spotted any promising new quality assets lately? Whether for centralized exchanges or current DeFi trends, quality assets and liquidity remain critical factors. Feel free to share what you’re watching now.
Su Ye: Lately, we’ve focused heavily on TRON-based projects. The trend is obvious—Ethereum is no longer affordable for us. Many ask: Has the rally gone too far? Will the bull market continue? I believe yes—but only if people can still profit. Once participants stop making money, the bull run ends.
Bull markets thrive on innovative narratives initially dismissed by skeptics—just like DeFi early on. Someone believes, shares it, and it spreads—almost like MLM. If you think something is powerful, you tell others, and they pass it on.
Bitcoin follows the same pattern—you believe digital currency is the future, share it, reinforce belief collectively, and a bull market emerges. Crucially, everyone must benefit during the storytelling phase.
Ethereum gas fees are unsustainable for salaried workers. Earning $9,000 monthly ($300/day), two trades eat a full day’s wage—before even considering whether the trade profits. If you can’t earn, you won’t promote the bull market narrative—and the cycle halts.
Lately, we’re studying Ethereum Layer 2 solutions like Loopring (LRC). These can fundamentally reshape Ethereum’s status quo by slashing transaction costs.
Alternatively, can we use TRON instead of Ethereum? EOS exists, but I find it harder to gain traction. TRON has an enormous user base. Back in late 2018, the surge between EOS and TRON mainly benefited TRON—giving it vast adoption.
We’re now tracking TRON closely. The “TRON Big Three”: DZI (counterpart to AMPL), Pearl (mirroring YFI), and TAI (a cross-chain solution akin to Polkadot). These lead in volume—nearly $10 million daily. That’s massive. We expect top-tier exchanges to list TRON projects soon.
Half an hour from now, Sun Yuchen’s SUN token begins mining. I suggest giving it a try—mining carries no risk. You earn simply by participating.
Binance Jess: TRON’s grassroots community is massive, fueling its liquidity. But withdrawing 20 TRX incurs rising fees—from $5 to $10.
Su Ye: Yes—by the time you withdraw, the rally may be over. And redepositing costs another $150.
Binance Jess: Was it 9 PM when SUN mining starts?
Su Ye: Not advertising for Brother Sun—but SUN mining requires staking TRX. If you participate, hedge properly—volatility is high. Binance offers the deepest TRX liquidity. I usually hedge via Binance perpetual contracts.
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Binance Jess: Binance spot markets lead globally. Whether altcoins or general liquidity, Binance excels in spot trading depth.
How do you view risks in DeFi contracts, especially compared to traditional finance, where insurance protects lenders and borrowers? With over-collateralized loans, defaults can occur. What are your thoughts on current DeFi contract vulnerabilities and the lack of decentralized insurance mechanisms? Have you researched this?
Su Ye: This is indeed crucial. Personally, I believe this DeFi bull run—and its journey to becoming fully mainstream—will inevitably face a black swan event. Not unlike the 2016 DAO hack, it could strike a major DeFi project.
Funds being stolen outright is common. BZRX, recently listed on Binance, suffered a flash loan attack early this year—millions lost. DF lost over $30 million. Such incidents happen regularly.
But in my view, smart contract risk cannot be eliminated—only managed based on personal risk tolerance. For example, among our partners—Moke, Captain, and myself—we have vastly different styles. I’m aggressive; they’re more conservative. Conservative approaches rarely lose money—only engage with audited contracts, earning “steady happiness.”
I prefer playing unaudited projects in their first 24–48 hours—returns are extremely high. Take Sushi: the team could rug pull anytime, wiping out all funds. When I joined, total value locked was $300–400 million—few participants. Each block minted 1,000 SUSHI. I held ~1% of the Band pool and ~0.5% of the Sushi pool—early dominance was achievable.
Later, after verification—Binance listing, Huobi listing—it gained legitimacy. Institutional capital flooded in. For retail investors, yields dropped significantly. While caution is needed in bull markets, choices depend on individual risk appetite.
If allocating 20% of funds speculatively—playing unaudited contracts—assess project credibility. Key indicators: Does the team have a solid track record? Like YFI’s developer—a veteran in crypto—low incentive to scam due to reputation.
Second, gauge how much capital is already committed. If only tens of millions are staked in Sushi, I’d hesitate. But when I joined, after 30 hours, $400 million had flowed in. Wealthier players had already vetted and accepted the risk—so following them reduces my exposure.
Third, examine project preparation. Scam projects often appear shoddy—poor websites, newly created Twitter accounts. These red flags indicate high risk. But if early liquidity pools are deep, it signals legitimacy. Based on judgment, entering high-risk/high-reward plays during bull runs can be worthwhile.
Another point: Few projects rug pull during bull markets. Why? Suppose a project raises $2 million. Under what condition won’t they run? If they believe honest work maximizes profits—no need to flee. As long as the market rises, running offers no advantage. Hence, in ongoing bull runs, rug-pull risk is low. So I encourage slightly more aggression.
I always hedge part of my mining positions. I open hedges on Binance—including for ETH mining pools. Perpetual contracts handle tens of thousands of dollars effortlessly. I’m aggressive, but I manage risk.
Binance Jess: How do you see the market outlook ahead?
Su Ye: Let’s break it down. First, how long can the bull market last? Undoubtedly, we’re in a bull market. Two main drivers: First, revolutionary innovation. DeFi is genuinely innovative. Compare to older narratives—public chains like QTUM or NEO—all were story-driven. Stories eventually become confidence games lacking profit support, unlike stocks backed by users, revenue, and earnings. They’re just stories.
DeFi differs fundamentally. Products like Uniswap generate real value. Tokens like SNX or MTA operate like platform tokens—think of them as BNB. BNB isn’t a meme coin—it earns revenue, has a sound economic model, like equities.
DeFi is the same. All synthetic asset revenues on Synthetix ultimately flow to SNX holders. As long as SNX generates profit, holders profit—making it a fundamentally sound asset.
DeFi transforms the past decade’s crypto paradigm. Previously, everything relied on narratives. In 2020—the 11th year—we finally see blockchain applied in practice. Not fully mature, but with real users, capital, profits, tangible products, and widespread usage. This is DeFi’s groundbreaking achievement.
Second, credit goes to Trump. Despite criticism, cryptocurrency players should thank him. Without his massive stimulus, little capital would have flowed into crypto. Without that influx, crypto’s V-shaped recovery this year wouldn’t have happened.
Watch central bank policies—especially Fed and ECB. Each round of monetary easing benefits the highest-risk assets most—U.S. tech stocks and cryptocurrencies. The U.S. has injected $14 trillion; crypto’s total market cap is ~$30 billion—similar to茅台 (Moutai). Pumping the entire crypto market is as feasible as pumping one blue-chip stock. A prolonged crypto bull run is inevitable.
Building on this, how long will the bull market last? Recall how the 2018 bull market ended? Xu Xiaoping passionately declared blockchain revolution was coming—not that he lacked vision, blockchain *is* revolutionary. But bull markets reflect supply-demand balance. Initially, knowledge spreads within the community—peer-to-peer, circulating existing capital.
When external capital enters, the bull market ignites. When does it end? When the final wave of outside money pours in. In 2018, that wave included traditional VCs and retail investors—your stock-trading uncles and aunts.
Binance Jess: Traditional institutions also joined.
Su Ye: Why do I believe this bull market persists? Today we discussed Sushi, but many haven’t experienced it firsthand. To truly benefit from DeFi, you must learn yield farming. Thus, I believe this DeFi bull market won’t end until even average users farm routinely.
Two more reasons the bull market continues: Currently, we’re mostly confined to Ethereum. Ethereum can’t interoperate with TRON, EOS, or Bitcoin. Why did REN surge? It enabled BTC-to-Ethereum bridging—unlocking Bitcoin’s liquidity. The true leader in cross-chain? Polkadot. But Polkadot hasn’t rolled out cross-chain functionality yet.
Once Polkadot’s cross-chain goes live—enabling interoperability across chains, especially bringing BTC onto Ethereum—the true DeFi age of exploration begins. So there’s no need to panic. Bull markets typically lift average assets 10x. In 2017, NEO rose 1,000x. Ethereum has only tripled—still modest, merely a recovery phase.
If this is truly a bull market, we’re still early. But it doesn’t mean no corrections. Review 2017’s charts: Between 2016–2017, Bitcoin corrected 8–9 times by over 20%—enough to liquidate 5x leveraged positions. Bull markets include crashes. Crashes are healthy—they enable profit-taking, turnover, and renewed strength before climbing again. I remain optimistic—DeFi’s bull run continues.
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Binance Jess: Mentioning cross-chain brings us to Binance Smart Chain, which aims to bridge CeFi and DeFi—combining CeFi advantages like lower fees and better UX into DeFi. Many discuss integrating CeFi strengths into DeFi. DeFi’s liquidity and depth have improved dramatically—from previously unusable to acceptable today thanks to increased capital inflow. Still, gaps with CeFi remain.
Many haven’t tried mining. I agree with you—DeFi’s bull market indirectly boosted CeFi exchange volumes to new highs. For viewers unfamiliar with mining, what advice would you give to start earning in DeFi quickly?
Su Ye: Yield farming is an extremely reliable way to earn. Trading involves inevitable drawdowns—even if 10 coins double today, your total portfolio might only gain 10%. Mining, however, allows large capital deployment with stable, consistent returns—regardless of weather. The tokens you mine are newly issued. With proper hedging, principal is protected. As long as the project doesn’t rug pull and contracts hold, your returns are secure.
I strongly recommend learning yield farming—it’s not hard. Plenty of tutorials exist online.
Second, trading DeFi isn’t about hype—it’s about fundamentals. Ultimately, judge by Total Value Locked (TVL), number of users, and protocol activity. Easy to assess—just like trading BNB: check Binance’s monthly profits, buyback amounts, undervaluation. Very measurable.
Where to find high-TVL projects? Visit DeFi Pulse to check TVL. Project websites and direct contract calls also show this data.
For speculative plays, chase new concepts—market-dependent. Recently, TRON projects attracted capital. Earlier, AMPL-like elastic supply tokens dominated—RMPL, SBTC all surged. Follow market leaders. DeFi sectors include lending, oracles, DEX, derivatives, insurance, stablecoins, AMPL-style tokens.
Example: To judge oracle sector strength, watch LINK. If LINK jumps 20%, other oracles become viable buys. This “follow the leader” strategy explains why, when YFI hit $36,000, I sold and rotated entirely into Sushi and YAM. Over next 1–2 days, Sushi rose 10x, YAM 5x—extremely rewarding.
Stock markets behave similarly—after龙头 (leaders) rise, e.g., in 2015, after CRRC surged, all rail transport stocks followed. Same logic applies. “Big brothers” are usually on Binance—watch top 5 trading pairs. Whichever coin exceeds 5,000 BTC daily volume and gains over 20%, consider buying its sector’s “second,” “third,” “fourth” brothers. Higher risk-reward ratio—capturing entire sector appreciation.
Binance Jess: Let’s make a prediction. Though DeFi was coined in 2018, this boom lasted mere months. Any forecast on DeFi’s endgame?
Su Ye: DeFi’s endgame is clear: It will disrupt nearly all second-tier exchanges, leaving only top-tier CEX and DeFi. Recently, Coinbase news shocked everyone—Uniswap’s volume surpassed Coinbase, rivaling Binance.
Listings on tier-two exchanges now offer little premium—Uniswap *is* the biggest market, the ultimate catalyst. DeFi, through AMM mechanisms, has found its purpose. With LP tokens, anyone can contribute to decentralized protocols, stake funds, and earn whenever Uniswap profits—all liquidity providers benefit.
But DeFi and CEX aren’t substitutes—they coexist symbiotically. Centralized exchanges act as connectors, bundling lending, derivatives, and trading—serving as bridges to DeFi—while offering unmatched speed and UX.
If I’m a seasoned DeFi user, I spend most time in DeFi. But new users constantly emerge—they prefer centralized exchanges. Thus, the final landscape will leave only top-tier exchanges standing.
Recently, YFI—what we call “farmers’ projects”—I wonder how you view them. Though I keep jumping in, I believe such projects don’t create incremental value—they merely redistribute value.
Now we have “Matryoshka dolls”—BNB is layer one. Use BNB to mine Token A, use Token A to mine Token B, and so on. Like 2008 subprime crisis—bundling good and bad assets into new securities. Back then, packages reached 30+ layers. Today, we’re still at 1–2 layers—safe for now.
But if nesting reaches 30–40 layers, it will inevitably collapse. This is my prediction—similar to January’s crash: BTC below $7,300, ETH below $186—the liquidation trigger on MakerDAO. Chain reactions ignite. Ethereum remains fragile—during crashes, gas spikes from 400 to 800, making exits impossible.
Ultimately, I see derivatives and DeFi acting as dual leverage—amplifying market swings. This bear market, when it comes, will end abruptly. Risk awareness remains vital. Personal opinion only.
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Binance Jess: I largely agree with your views on winner-takes-all dynamics and the Matthew effect. We’ve recently observed this not only in crypto but across traditional industries and internet giants—the concentration at the top is evident. Any final questions? About mining or wealth secrets?
Su Ye: Today’s crash is normal. Bull markets typically follow a “three steps forward, one step back” pattern. As long as pullbacks stay under 70% of prior gains, they’re healthy. E.g., +10%, -7% is reasonable. Beyond that, caution is warranted.
Today’s move fits—after big gains, correction is natural. A perpetually rising market isn’t healthier than one with crashes. Sharp drops allow profit-taking and fresh capital entry—essential turnover. Without crashes, new money never enters. So this is actually a healthy, normal occurrence.
Binance Jess: Someone asks: Does Teacher Su Ye have social media accounts?
Su Ye: Yes. Search WeChat Official Account “区块方舟Pro” or Weibo “区块方舟.” We publish a daily report—“Moke Daily”—likely the timeliest in China, updated every 2–3 days. It covers fastest-moving wealth opportunities. Simply reading it keeps you aligned with market pace. Written personally by our partner Moke—who achieved financial freedom this bull run—so every recommendation is carefully selected.
Binance Jess: Thank you, Su Ye, for sharing. I think you might need to head off to start mining. That concludes today’s livestream. Thanks, Su Ye.
Su Ye: Thank you, Jess, for hosting. Everyone, keep trading on Binance!
「Disclaimer: The views expressed by the guest do not represent the stance of Binance's "Blockchain 101," nor constitute investment advice. Please exercise caution.」
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