ZoneBitcoin EditorialYou have certainly seen the information: Andrew Cronje (the founder of Yearn.Finance and developer of FTM and KP3R) has decided to withdraw from DeFi. This can be confusing to read and understand because he is a major figure in the world of Decentralized Finance.
He deleted his Twitter account and for those who follow him on LinkedIn and on Medium, we could have suspected this for a while. He was always more critical of the crypto community which, according to him, would deteriorate over the years.
Why is Andre Cronje's withdrawal significant?
By the way, we are talking about Yearn.Finance but it is also behind more than 25 protocols…It is perhaps one of the rare thinker of DeFi, most members being users or sellers of services. We can say that Cronje is one of the thinking heads who is able to understand the issue and the models used by the protocols, where others only copy and exploit them without further questioning.
Andre Cronje explained a lot and wrote numerous articles on Medium which are real mines of information for anyone who wants to go further in understanding the protocols
In short, we have carefully read the two articles in which he explains the “problems of DeFi” and what explains his departure.
We based this article on the two parts written one year apart of the article entitled " Building in #DeFi sucks ». In French, this gives something like " Creating in DeFi sucks or stinks according to everyone's opinions...
In fact, he explains that DeFi has its good and bad sides but that he prefers to leave DeFi because the bad sides seem to be stronger today…
We have given you a short summary.
Users “criticize” too quickly
The first complaint concerns the community and the users. Andre Cronje is tired of hearing endless criticism on Twitter and social networks. This is the lot of everyone exposed, of course, but given his level of popularity, it seems to particularly annoy him. He also speaks on behalf of other developers…
He says: “Honestly, if this keeps up, we won't see people trying to innovate in this space, all we see are teams constantly trying to attack each other and break each other.”
Basically, he blames the community for attacking each other instead of lifting each other up.
He insists on the fact that people who have doubts are quickly relayed and this has a sort of snowball effect with content shared to the extreme. Doubts and criticisms spread quickly, without much basis. Developers are forced to respond immediately (no matter if they are busy with other tasks) and if they do not respond, doubts increase. Instead of checking, users tend to get fired up….
2/ Development takes time and the community is impatient
Andre Cronje reminds us that development on the blockchain takes time technically. The haste of people who constantly ask "so, when will it be ready?" "When will it be released", "We want an update!". This pressure and impatience can be dangerous for developers who are increasingly stressed.
Likewise, the slightest error in the code is then revealed and perhaps used against developers for months and years. Errors and failures are increased tenfold in DeFi.
3/ People are only interested in gain and profit (not technology)
He explains that people are in a hurry to see the release or update of a protocol without caring about the project itself. What interests them is the fact that this will influence the price upwards. What interests them is money and profit.
“They don't actually want to use your product, they only want to use the “narrative” of your product to make money. »
Andre Cronje (Building in #DeFi Sucks).
😩 Read our article: And, if we re-focused on utility rather than qWhat about DeFi returns?
4/ People are only interested in gain and profit (not technology)
Real users are rare and if you take away the various subsidies, this number will collapse. There are few Defi users but speculators. In fact, the Yield farming is a good example. (He was the instigator despite himself…) As rates collapse, users disappear.
“Real users are scarce, for all the billions we have in challenge right now, if you strip away the subsidies (paying for users), this number will collapse. »
He writes: “People don’t care about your asset management system, they just want to farm tokens.” (People don't care about your asset management system, they just want to farm tokens.)
He explains that this search for profit rather than utility means that people will immediately turn to protocols that pay more and have copied a good protocol. No credit is given to the developers behind the first protocol. The copy-pasted version with big APYs is enough…
Here he criticizes the DeFi Degens…
5/ The value of a protocol depends on the “price” of the token
Andre Cronje explains this very painful truth in the crypto sphere which is that if the token increases in value, then the developer is seen as a genius, a hero and that if the token goes down, then he is a crook, a bogus project , etc…
DeFi users usually have no knowledge of economics and follow their instincts as new amateur traders with their quickly performed “Technical Analysis” (TA). Only the price of the token allows them to estimate the value of a project.
Of course, this correlation is more than misleading...
He concludes, “Your success belongs to your “community,” but your failure belongs 100% to you.”
6/ Ingratitude and the governance of dictators
Andre Cronje explains that he regrets having distributed YFI tokens from his Yearn.Finance protocol. He explains that he wanted to do it to give the community more weight on the protocol. In fact, he was held responsible for all the price drops. He advises other developers not to try to be generous at all costs...In fact, it cost him a lot of money in terms of development. He lost money doing it.
He writes « Community is bullshit"
He argues that in fact, in governance tokens, people do not want to govern and give their opinions. They just want to have tokens worth money and be dictators who give orders to developers.
Andrew Cronje
Because all people want to do is govern, but not in the trenches helping fight, instead on their throne as a dictator simply shouting orders while their plebian developers need to execute.
He even adds that " governance and community kill innovation and development. Don't do it.
Andre Cronje's conclusion
He concludes with an “honest” piece of advice, saying that it’s not good to be a developer in DeFi unless you’re a masochist.
He says it's better to be a shitcoin trader, who wanders around all day on Twitter and on Telegram posting injectives to developers waiting for updates. And when the shitcoin is on the rise, you will boast of having made a good trade and if it goes down, you will blame the developers and the project.
At least you'll make more money. And if you screw up, you can say it was "Psyops" (Psychological Operations usually used by the military to influence the enemy) behind it who want to liquidate the protocol.
In short, he concludes like this by asking himself the question (apparently the question he had asked himself) by asking: "Why do you want to bear all the costs, all the responsibilities and all the risks with a fraction (or in my stupid case, none) of the reward...
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We are saddened - to tell you frankly - by the departure of Andre Cronje. He was clearly a person who contributed enormously to DeFi with his analyses, his relevant research. We feel that DeFi is expanding more and more and that it attracts more and more people....Maybe not the "healthy" ones....Many people enter this world with the sole aim of getting rich and forget that we are dealing with a technology above all.
Andre Cronje is not the only one who thinks so and some time ago, Vitalik Buterin had already “complained” about the immature behavior of the crypto community…
We will see what the future holds for us, but if intelligent personalities like Andre Cronje leave the boat, we risk swimming in troubled waters... If this is not already the case...
You can see the video on Youtube at Andrew Cronje right here:
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