Ethereum DeFi's most enigmatic investor, "DegenSpartan" says this will be DeFi's watershed moment

If you've followed DeFi on Twitter, you've likely heard of the name "DegenSpartan."

The pseudonymous investor, believed to be based in Asia, has become one of the most popular voices within the Ethereum and DeFi community, having entered this crypto industry extremely early on.

DegenSpartan is one of the few DeFi investors not to be infatuated with Yearn.

Finance, the yield aggregator and full-stack DeFi protocol.

DeFi could see further losses: "You didn't invest in a perpetual money machine".

While it isn't clear when exactly this was recorded, DegenSpartan seemingly suggested that the DeFi space has further to drop in the weeks and months ahead. His comment was that not all investors have realized that they have not invested in a perpetual money machine, referencing how for each percent yield earned, there is a loser on the other side of that transaction.

The incentives of many DeFi protocols are skewed, he added, discussing how investors that those that farm assets are often barely incentivized to hold them for longer periods of time.

DeFi's watershed moment will be layer-two decentralized exchanges.

Finally, he discussed what he thinks will take DeFi truly to the new level: decentralized exchanges, namely derivatives exchanges built on layer-two scaling technologies.

While DeFi is quickly becoming the place to obtain loans and earn yields in the cryptocurrency space, there are not yet exchanges in DeFi that match the experience of using a platform like FTX or BitMEX. DegenSpartan thinks that when such exchanges launch, Ethereum DeFi will be brought to the next level.