On August 4, 2020, Zora, Binance Taiwan community lead, interviewed Pan ZhiXiong, Research Director at ChainNews. During the livestream, Pan shared his insights on the DeFi market and liquidity mining from the perspective of a cryptocurrency community content creator. He emphasized that only by strictly managing risks can new DeFi projects achieve sustainable growth, and that current efforts should focus on building overall security.
Pan highlighted the advantages of DeFi (decentralized finance) as follows: 1) Data is public and open, with all logic built on blockchain, enabling traceability; 2) DeFi achieves composability that centralized finance cannot match, allowing protocol-layer combinations to unlock new possibilities. According to Pan, DeFi's greatest strength lies in its ability to precisely address user pain points and deliver real value.
Regarding the currently frenzied DeFi market, Pan noted that rising FOMO sentiment has driven massive user inflows, pushing up prices of governance tokens at the protocol layer. In the long run, the market remains in a chaotic phase. Users should first assess their asset size and risk tolerance, find a balance, and then identify suitable investment opportunities accordingly.
For more精彩 stories, follow the official account @Block101 to watch the full video recording. The guests' opinions do not represent the views of this program, and this program does not constitute any investment advice.
