Ethereum Founder Buterin Slams the DeFi Model Latter Terra’s Crash
Ethereum founder Vitalik Buterin said there is no true investment that can achieve anywhere near 20% returns per year after studying the Terra crash which drowned the crypto market down.
The downfall of Terra has sparked a massive sell-off in the crypto market, particularly in the DeFi market. Over the span of a few days, it dropped to nearly zero dollars, wiping away $60 billion in Terra coins alone.
Analyzing this Viltalik Buterin said, “The greater level of scrutiny on Defi financial mechanisms, especially those that try very hard to optimize for ‘capital efficiency’, is highly welcome,”