Yea I work at Balancer and love decentralized finance. It is the shining light of the crypto market and it unfortunately gets so little attention in mainstream media.
We have a chance to make finance better with companies that are completely transparent. Where all funds are held by code which can be audited and proven that they can't steal funds.
Decentralized versions of what FTX did already exist:
- Exchanges: Uniswap, Balancer
- Lending Markets: Aave, Compound
- Options: Lyra, Ribbon
- Perps: GMX, Perpetual
We don't have to suffer through scammer after scammer until the end of time, and we don't need overbearing regulation to save us. We just need transparency.
Real finance is already being done in these platforms and I wish more people would take it seriously and realise this can be a much better future for everyone.
Plus because they're open source and composable we can innovate much faster but that's a thread for another time.
Your "love" of decentralized finance is clouding your judgement. "We just need transparency" -> this is patently false. The decentralized exchanges you mentioned are supposedly open and transparent and yet 97% of coins listed on Uniswap are scams. Being open source and transparent solves nothing.
What we need is better, more equipped, and less corrupt regulators.
The problem with DeFi is it can't handle credit risk. You see, banks can also eliminate credit risk. They could lend money, and then insist that the money be kept in a box under their supervision. That would eliminate credit risk, and the money would always be safe. Okay, but what would be the point of that? The entire point of lending is temporarily giving up control of resources so that other people can use them. Therefore credit risk is inherent to any lending activity that is useful. Lending without credit risk is pointless, it defeats the purpose. Most DeFi enthusiasts I have spoken with don't understand this.
We have a chance to make finance better with companies that are completely transparent. Where all funds are held by code which can be audited and proven that they can't steal funds.
Decentralized versions of what FTX did already exist:
- Exchanges: Uniswap, Balancer
- Lending Markets: Aave, Compound
- Options: Lyra, Ribbon
- Perps: GMX, Perpetual
We don't have to suffer through scammer after scammer until the end of time, and we don't need overbearing regulation to save us. We just need transparency.
Real finance is already being done in these platforms and I wish more people would take it seriously and realise this can be a much better future for everyone.
Plus because they're open source and composable we can innovate much faster but that's a thread for another time.