@yourmercedesguy9646
7 hours ago
mista phi....have you checked out Paca Finance?
Thx for the share mercedesguy...
I just looked it up and saw a recent video from Crypto Mischief. Good to see that some of these guys have evolved and aren't just shillin' projects for referral rewards; and are sharing some of the associated risks with these projects.
I may have to ponder on this a bit more, but my initial thoughts are a no-go for the following reasons:
1) Projects that require the locking up of your capital (TVL) are a huge red flag for me. Looks like this protocol locks up your capital for 250 days.
2) It seems that paca finance's operations depend on (and are subject to) the operations of other pools. If these pools shut down or get hacked, paca finance and investors of their protocol will suffer losses as well. So additional risks come with each new level of dependency.
3) Additional risks come from the necessity to manually manage the pools. If something happens to the person or people managing the pools (or if they just get burnt out), the income stream would be nonexistent and payouts would then be subject to ponzi-styled dynamics.
4) Similar to (3), if the person managing the pools is unable to generate sufficient income to cover the protocol's payouts, the ponzinomics will kick in. Just like other ponzi schemes, things work well; until they don't... And all (and I do mean ALL) ponzis schemes eventually come to an end. So for those that are willing to invest in paca finance, I wouldn't recommend playing with a long-term strategy (ie. doing all that compounding).
5) The USDT payout is too slow, especially for those of us that are Bitcoin maxis. And especially now when the market is at the cusp of a potential bull run. Better to buy & hold Bitcoin b/c (a) I have access to my capital, (b) my capital is not at risk, and (c) Bitcoin's price appreciation could very well produce greater returns.
Hope that makes sense... But if I'm missing something or misrepresented anything in the statements above, please let me know. But based on my understanding of the protocol thus far, paca finance's risk/reward falls outside of my risk tolerance. ie. the risks are too high and the time is far too long for me to receive an anticipated (not guaranteed) reward. So I'll have to give this paca finance a thumbs down
But again, many thanks for sharing and if you discover any other projects that may be of interest, please open up a discussion here in the DCS forum.
Proshate cha
