2025-12-24 09:28:06

History always repeats itself. Suppose by the end of 2025, a leading centralized lending platform secretly moves user funds off-chain to invest in junk bonds or high-leverage gambling to fulfill an 8% high-yield promise, only to be爆炸ed by market fluctuations. Hundreds of thousands of people's money instantly becomes bad debt. Once again, a bloody lesson: all opaque financial promises are essentially playing hot potato.

The core issue is simple—re-mortgaging with black boxes. You have no idea where the money is flowing.

In contrast, what does true on-chain finance look like? Data is verifiable. You can see the destination of every fund through a blockchain explorer: whether it’s lent to over-collateralized users in a DEX or staked with blockchain nodes. Every transaction can be matched to an account.

More importantly, risk isolation is thorough. No credit loans, no unsecured investments; all returns come from over-collateralized positions in on-chain protocols. If bad debt occurs? Collateral is directly liquidated, at most at a discount. Unlike CeFi, where a single blow can wipe everything out.

This is the fundamental difference between on-chain and off-chain. One is a glass box, the other is a black box.

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IntrovertMetaverse

· 11h ago

Glass box vs black box, no wrong points... but I still don't trust anything operated by humans, whether on-chain or off-chain.

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UnluckyMiner

· 12-24 09:57

Here we go again, I just want to know when it will finally settle down... I've heard the 8% promise for three years, I should have realized by now. As for trust, I respect the transparency of on-chain data; at least bad debts are clear at a glance, no need to be kept in the dark and wait for death.

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DEXRobinHood

· 12-24 09:56

There is going to be another wave of runaways, do these CEXs really not want to play for real?

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ColdWalletAnxiety

· 12-24 09:54

Here we go again with this? Every time they claim transparency, but as soon as an on-chain bug appears, no one can save it.

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AirdropHunterZhang

· 12-24 09:49

Coming with this again? I already suffered this loss on a major platform in 2023. The 8% promise directly turned into zero, and I'm still on the liquidation list. A black box is a black box; it should have been fully on-chain long ago. At least the data should be verifiable, so stop the scams.

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CoffeeNFTrader

· 12-24 09:43

Coming back with this again? I stopped believing in 8% high returns a long time ago, and many people are still falling for it. On-chain transparency is there, but you need to know how to read a block explorer; most people simply can't.

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ProposalManiac

· 12-24 09:40

Glass box vs. black box, well said. The problem is that most people simply can't understand blockchain explorers, so they still have to rely on trust. No matter how perfect the mechanism design is, execution issues are just as likely to happen. Bad debt liquidation is also an ideal scenario—during a bull market, collateral is abundant; what about during a bear market? I've seen several chain reactions of liquidations, and it's still just harvesting the leek. CeFi will die, but don't expect on-chain to be completely safe—it's just a change in the type of risk, not its disappearance.

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