Review on Wrapped Bitcoin by Alexander Grizma

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A new application has appeared in the decentralized finance (DeFi) market. It promises clients hundreds and thousands of percent of profit when opening a deposit. But using the platform is extremely risky, the developers themselves warn about this.

A new player has appeared on the decentralized finance (DeFi) market - the Spaghetti Money platform, and on the very first day of its existence, users entrusted it with $ 250 million in cryptocurrency. The reason for this demand was the high rates on deposits. Immediately after the launch of the site, traders could transfer Ethereum, the bitcoin-backed WBTC token and other coins to it in order to receive up to 35,000% per annum as a deposit.

The launch of the platform took place on August 17, as the project developers reported on their blog. Since then, the interest rate on deposits has decreased, and therefore users have withdrawn about $ 150 million of their funds. Now, from a deposit in Wrapped Bitcoin (WBTC), you can receive about 64% per annum, in the case of Ethereum, the rate is lower - 42%. The most profitable contribution to the Compound token is more than 300% profitability per year, but trusting funds to this platform is probably the most risky way to make money in cryptocurrency at the moment. On each page of the project site there is an inscription in bold, which says that the site protocol has not passed the test. The developers recommend using their service only to those who are personally convinced of the serviceability of its program code, thereby shifting responsibility from themselves to customers.



The exact same warning was posted on the Yam project site. It appeared on August 12, within a day after that, users transferred more than $ 150 million in cryptocurrency to the platform. On the second day of the application's operation, its developer reported that he had found a critical vulnerability in the program code. Half an hour later, the rate of the token of the same name dropped from $ 167 below $ 1.

The Spaghetti Money platform also has its own coin - Pasta. Users who deposit funds to the site receive payments on deposits in alt coin. And that's another risk for potential customers. The project's token is getting cheaper, as it is sold by traders as they receive interest on deposits. Thus, the price of the asset since the launch of the application dropped from $ 3.7 to the current level of $ 0.14.

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