TradFi veteran (10+ years experience on Wall Street) connecting the dots between decentralized finance (DeFi) and traditional finance (TradFi). @bridgingdefi
Concerns of a regulator: A key question is if risks of DeFi are contained to people engaging in DeFi or could there be broader spillovers to society? For example, inadvertently providing funds to bad actors (such as terrorists).
Stablecoins face the risk of (1) run risk where in periods of turmoil, stablecoin “depositors” withdraw funds from a stablecoin issue, (2) being used in illicit finance where bad actors (such as terrorists) use stablecoins to bypass the traditional financial system to move money.
Definitions: The crypto ecosystem consists of three parts:
- a crypto-asset
- technology that directly facilitates trading crypto-assets; smart contracts and tokenization
- a database management protocol used to record trades and ownership of assets; blockchain
Concerns of a regulator: A key question is if risks of DeFi are contained to people engaging in DeFi or could there be broader spillovers to society? For example, inadvertently providing funds to bad actors (such as terrorists).
12/ 3.9k monthly active devs are building in DeFi -- how many devs does it take to create a new financial system?🤔
DeFi has had a rough 18 months since DeFi Summer but developers are up 240% since then!
Perhaps surprising to some, 50% of DeFi devs are outside of @ethereum