#Binance This time, the $CYBER current currency earning and redemption limit incident has caused quite a stir, and there are some interesting things in it:

1. The biggest controversy at present is that some people think that Binance uses users’ funds to destroy the market at a high level, and then collects it back at a low level and returns it to users. Personally, I feel that this is unlikely. If you want to destroy the market, you can directly “print money”, so there is no need to do so. tired.

2. In fact, whether it is Binance’s current financial management or Defi’s lending agreement, it is essentially a lending product. The source of interest for saving is a lending product (loan). What does it mean?

In Binance’s current coin-earning product, the initiative of repayment is in the hands of the borrower. The main thing is that his deposit is sufficient, otherwise he does not have to pay it back when you want to redeem it. These terms are all written, but maybe Binance did not write them in such detail, so you are forced to pay back the coins, or you may not be able to get them out in a short time. Although the currency is not normal, it is still a small probability event that can happen!

Personally, I suggest that Binance think about changing its name. The name of this current financial management product really makes people think that it can be withdrawn at any time! In this regard, I think @TingHu888’s suggestion is quite good: liquidity is exhausted and lending rates are steep. While waiting for the borrower to repay the currency, add a liquidation function, which is a certain safety line to liquidate the mortgage funds of the borrower to the depositor. On the currency side, it is up to the depositor to decide whether to purchase the deposited currency at the current price (market price), instead of having to wait for the borrower to return it and slowly withdraw it. I hope Binance will consider adopting it!

3. Some lessons: No matter which exchange you use, remember to understand its rules! Don't do something you don't understand! You must know that wherever you want to gain profits, there must be certain risks waiting. It’s just that the greater the desire, the higher the risk.

I find the currency circle very interesting. Everyone knows that contracts have risks, but they don’t know that financial management actually also has risks. In essence, you are giving your assets to others for safekeeping, and your destiny is also handed over to others. This time it is a systemic risk caused by price differences, and financial management may also be a risk of running away! Therefore, always remember that sentence, investment is risky, and you need to be cautious when entering the market!