The finance world is so detached from the real world that most mechanism for making money sounds ridiculous if you're not paying enough attention.
Many years ago I didn't understand Bitcoin enough to explain why someone would make bitcoin by just running their computer. The fact that I could explain it now doesn't make it any more relatable for the real world.
The defi world manage to create another cognitive dissonance last week with yield-farming.
You can earn 100% annual interest rate using USD in multiple places on Ethereum right now. How?— Tony Sheng 🦉 (@tonysheng) June 20, 2020
Thread you can share with normies.
To my poor understanding now, this looks like passing money from left hand to the right and back, profiting from the difference. It only sounds dubious if we don't understand who is on the losing end of this mechanism.