Nicki Sanders
@nicki
Iâve spent 7 years in DeFi. Iâve lost money, made money, and learned more than I ever expected. Here are 10 mistakes Iâll never make again (so you donât have to): 1. Chasing unsustainable APYs If the yield looks too good to be true, it probably is. Iâve learned to ask where the yield is actually coming from.
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Nicki Sanders
@nicki
2. Overexposing to a single protocol or chain Putting all your capital in one place is dangerous. Even the most hyped projects can collapse overnight. 3. Using unaudited smart contracts I once trusted a sleek interface and lost funds to a basic exploit. Audits arenât a guarantee, but no audit is a clear warning sign. 4. Not securing my keys properly Hot wallets are convenient, but theyâre not the place to store serious capital. Hardware wallets and multisigs are now non-negotiable for me. 5. Assuming stablecoins will always stay stable I used to think stables were safe by default. I learned the hard way that understanding the mechanics behind the peg is essential. 6. Ignoring governance dynamics Low voter participation and whale-controlled voting often make governance meaningless. Now I evaluate a protocolâs political health before getting involved.
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Nicki Sanders
@nicki
7. FOMOing into tokens without understanding tokenomics I used to buy the story. Now I break down emissions, lockups, and incentive structures. Most tokens lose value unless carefully designed. 8. Staying too long in ecosystems with fading developer activity If builders are leaving, Iâm already late. Developer engagement is one of the clearest signs of a healthy ecosystem. 9. Underestimating regulatory risk I used to ignore it. Now I track legal exposure and jurisdictional risks before deploying capital. 10. Believing âthis time is differentâ Every cycle has the same emotional beats. I keep notes, revisit old mistakes, and remind myself that experience is expensive. DeFi is still in its early days. The risks are real, but the innovation is too. If youâre navigating this space, I hope these lessons help you avoid a few pitfalls. Whatâs one DeFi mistake youâll never repeat?
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Matt âď¸
@mattdcp
Good list! While all important love #8. Developer engagement has to be healthy and hungry to advance.
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Nicki Sanders
@nicki
đŻ
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