The crypto space is an unregulated space. A free for all space with many of the protocols and ideas open-source so that everyone can help out, but this a double edge sword... Protocols being open-source indeed means anyone can help out with the development, but it also means anyone can copy the code and spin their own version! And this is what we are seeing in DeFi right now.
Yearn.finance is a protocol that moves the funds from protocol to protocol trying to farm the best interest rates plus governance token yields. After months of being online, the smart contract owners decided that maybe the protocol should have a governance token, and so they introduced YFI... but some people decided the distribution was not the best, so they forked the whole protocol and made their own version with their own governance token! And others disagreed with both versions of the protocol so they forked it again...and again... and again! YFII, YFV, YFL, Yetc...
This is the nature of being open-source, protocols are very easily copy-pasted, and implemented again...
All these protocols and governance tokens that copy-pasted the YFI token are very risky in my opinion, the devs aren't well known and at any time they can introduce a bug in the software and steal everything. Hodling the token for short term trades might be ok, but for long-term, not sure if it isn't too risky...
But YFI was just one of the firsts, now even Uniswap is being forked!
Uniswap was forked and introduced a governance token. The new protocol is called SushiSwap, it's basically a fork of uniswap, works the same way, but the Liquidity providers get the fees plus the governance token called SUSHI! I don't like to trust in protocols that are so new, so I'm not putting any money on it... and I think Uniswap V3 will come with their own governance token, still, the Uniswap devs are calling out the Sushi devs on twitter.
It seems the Sushi devs are giving SUSHI to Uniswap Liquidity Providers(LP) for the next few weeks and will only launch SushiSwap after this early distribution... This is crazy! It's trying to influence LP from Uniswap to change to SushiSwap. I wonder what will happen... The main dev from Sushi is also calling out the main Uniswap dev for getting the VCs involved in the protocol.
But SushiSwap isn't the only one trying to influence people to change protocols, this next one is trying to do it in a devious and awful way... What SushiSwap did, I have no problem, the free-market will deem which one is worth and which one is not, but what this next one did is just awful.
Spartan Protocol, a new protocol that is going to launch on Binance Chain to do synthetic assets stole the Ethereum Synthetix community name... The Synthetix community have been calling themselves Spartans for many many months, they made Synthetix memes based on Spartans, they have big accounts named SpartanFarmer, DegenSpartan and so on... and Binance Chain just decided to deploy a protocol with this name, and with the exact same use case that Synthetix has? Camon...
This is devious, this feels just like Justin Sun trying to steal the Steem community and thinking that people will go along with it... But I guess I shouldn't be surprised about this, CZ and Justin Sun are exactly the same! They are in this to suck as much money out of the system as they can, they don't care about us, they only care about how heavy their wallet is. I feel really happy seeing DEXs volume going up exponentially while CEXs volume are staying stable or even decreasing...
Stealing the name of a community is just wrong! How can they even think about doing this! It's devious and awful... I'm all for copy-pasting protocols, I'm a free-market type of guy, I like the competition between protocols, it only makes them better long-term, but using a wicked tactic like stealing the community name to use in another protocol's name just to try and get some less knowledgeable user, is just wrong...
I'm a capitalism supporter, but capitalism needs to be based on good morals, ethics, and values, there is a limit to how far you can go in trying to be competitive in the free-market. If you are trying to be competitive by developing better things, it's ok, if you are trying to be competitive by burning down your opponent's business, or trashing whole neighbors, or sending more toxics to the water or atmosphere than the max limit allowed, you are doing it wrong. We are first and foremost humans! Not machines without values, morals, or ethics.
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