Will DeFi egress Eth?

DeFi and Ethereum have long been married. However their relationship now seems to be in turmoil.

DeFi and Ethereum are closely linked. DeFi was one of the finest things that ever happened to Ethereum. However, the pace at which DeFi is expanding is disconcerting as well.

There are two parts to understanding DeFi. One is we take existing financial instruments and services and try to Decentralize them. However lucrative it might sound, but still doesn’t unlock the full potential of DeFi.

The other way of thinking about DeFi is we create new incentives and decision-making capabilities that are absent in Centralized finance. This can unlock a lot more potential for DeFi.

The existing DeFi race of creating tokens and yield farming on top of those tokens has alarmed a lot of people including Vitalik Buterin.

At the EthCC conference in Paris, Vitalik commented — “Ethereum has to expand beyond just trading tokens and helping to create other tokens. If you just take DeFi and push it into infinity, you’re just going to get tokens that give you profit from yield farming, and…