I would like for everyone to have a conversation around setting community standards for defi projects.
As we know, Defi is growing at a rampant pace. It is not only a honey pot for scammers but also a terrible opportunity for the well meaning but negligent and or less-competent to create hazards for themselves and others.
We are starting to see scams ( dogz coin or whatever that was ). I know a relatively small loss does not seem like cause for concern. Though, every time a scammer gets a minor victory that is their funding and feedback to up their attention onto the Tezos community. Plus, to get the community on board and reach consensus, the earlier we start this process, the better.
The standards would, like all things decentralized, be regulated by willful participation, or it’s absence. Ultimately, every individual will and should determine for themselves what projects to support or not. Though, a general community recommendation on what to look for and compare projects by would be incredibly helpful in minimizing the damage that careless or dangerous projects have on the Tezos community.
I have been in crypto since 2013, worked support with the trust dep at Coinbase and support at Blockchain. I have watched every kind of scam, fraud or hazard. It is my opinion that the vast majority could have been prevented with minimal effort via common sense and a bit of objectivity.
Some common sense places to start:
Does the project have a white paper?
Is it open-source?
Does it have a free use license (MIT)?
How long has it been operating ‘in the wild’?
Has the code been audited by an independent third party?
Are the participants anonymous? What reputation do they have on the line?
A useful resource for reference, developed by a professional in this area is https://www.spacesuitx.org/ by Bruce Fenton. https://brucefenton.com/ is one of the most credible people on these topics in the industry. He has I believe, at least two decades on Wallstreet and has been a passionate, principled supporter of crypto since the beginning. This resource was created more for ICOs and tokens but the same principles apply.
Thanks for reading, participation and any feedback!