What is a DeFi Degenerate (DeFi degens)?
DeFi degenerates, or DeFi degens, refer to the infamous side of decentralized finance that is composed of different types of pump and dump schemes. The term is also used to describe users that pursue high yields in DeFi projects which are not sufficiently evaluated or verified. The way the DeFi system functions enable a vast number of entities to produce or build some form of digital assets and dApps. Hence, there are projects that are unregulated and with unclear futures and perspectives.
Such unaudited projects are part of the system referred to as DeFi degens. Users can generate losses if they don’t fully understand the way in which these projects function. Project creators could try to increase the value through forums and channels and eventually take out their profits, leaving the users with worthless or nearly worthless tokens. After the degens have pulled out their profits, projects are abandoned.