Invite industry chiefs to talk about the current market situation and see the future trend! This issue of Dialogue Chief online event was successfully held at 10 am on May 24.
This Dialogue Chief specially invited Li Lewei, founder of DUO Network, Allen An, co-founder CEO of The Force Protocol, Pan Chao, head of MakerDAO China, and Dai Shichao, head of Hydro Protocol DDEX market public relations, as the hosts of this roundtable. guest.
Four expert observation groups: Yang Mindao, founder of dForce Blockpower, Gu Yanxi, researcher of blockchain and encrypted digital assets, Hao Fangzhou, senior editor, and Guo Guanghua, co-founder of Lianwang Technology founder of Substrate China League.
Three media observation groups: Gong Bo from Lianwen, Chang Xingyu from LianDDe, and Wang Xuejing from Lieyun Finance.
At the same time, Dialogue Chief also welcomes exchanges, wallets, mining and other blockchain chiefs to participate in our activities and jointly offer advice and suggestions for the development of the industry. For details, please contact TokenInsight Chief Communications Officer Weiwei: tokeninsight_data.
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/ Session 1: Roundtable 1 /
Lieyun Finance Wang Xuejing: It is understood that there are currently thousands of DeFi projects. From stablecoins to decentralized exchanges, wallets, payment networks, lending and insurance platforms, to key infrastructure, markets and investment engines, the entire DeFi ecosystem is booming.
Earlier this year, some blockchain software companies also stated that decentralized financial services based on Ethereum will achieve a 10-fold increase in users in 2019. According to its incomplete statistics, there are currently hundreds of DeFi projects based on Ethereum. Based on this, I mainly have the following three questions to ask industry experts:
1. DeFi has been a hot topic in the blockchain field since 2018. Many people believe that DeFi is an inevitable trend in the development of the industry. I would like to ask the original intention of each project party to choose DeFi when they enter the market, and why they are optimistic about the prospects of the DeFi industry?
2. How does a DeFi project stand out from other projects through its own unique design mechanism?
3. Financial projects generally need to be in direct contact with user assets. How can DeFi projects ensure the security of user assets?
Allen An, co-founder CEO of The Force Protocol: It is true that more and more people are paying attention to and mentioning Defi. The Force Protocol team actually noticed the application potential of Ethereum in distributed financial service scenarios very early on. The team is researching During the investment process, it was discovered that the use of smart contract technology combined with the blockchain can better solve the trust problem in financial transactions. The original features of the blockchain ledger, such as publicity and traceability of transactions, can subvert traditional centralized financial platforms everywhere. .
Coincidentally, starting in 2018, a group of companies and teams led by Coinbase proposed the concept of DeFi, which coincides with the work done by The Force Protocol.
So our team just caught up with the rise of the concept of DeFi. In fact, whether it is DeFi, DeFin, or Open Finance, we still hope to make good use of smart contracts and blockchain technology to serve users and protect users. While assets are safe, more people can get real inclusive financial services from the popularization of blockchain technology.
Then how does the DeFi project stand out from many projects through its own unique design mechanism? We believe that the first thing that a DeFi project must do well is to polish its own technology. Only by ensuring that its own products have no loopholes and the security of user assets can it To become a qualified project, in addition, DeFi projects also need to improve the user experience, and carry out a lot of optimization in terms of transaction speed and usage process, so as to truly lower the threshold for users to use.
Thirdly, unlike centralized financial services, DeFi uses smart contract technology to achieve de-intermediation, users own private keys, and complete various financial service operations by authorizing smart contracts, which minimizes the risk of assets being centralized. The possibility of misappropriation and theft by chemical institutions.
Our team has always believed that solid product development and application implementation should be the basis for the survival and development of a DeFi project, and you need to be hardworking yourself.
Li Lewei, founder of DUO Network: The core team of DUO comes from the financial industry. We chose to enter the blockchain field because of its potential to subvert the existing financial system. For us, open finance is an ultimate goal, and blockchain technology is an important way to realize it.
How does a DeFi project stand out from the crowd through its own unique design mechanism? In my opinion, good DeFi products should be able to empower other blockchain projects, or help users and partners create value. High-quality DeFi projects will be committed to interacting with digital assets and ecological partners. If you use the recently popular term, it is also called resonance.
Regarding the security of user assets, DUO aims to allow users to return to their familiar and verified operations as much as possible. For example, our derivative token (CAT) is compatible with the most mainstream ERC-20 protocol, so that users can manage these assets through their usual wallets instead of relearning a set of processes.
Dai Shichao, Head of Hydro Protocol DDEX Market PR: The concept of DeFi really became something in October 2018, from Brendan, the founder of the lending agreement dharma. Then several blockchain financial projects successively raised funds, voiced their voices, and huddled together to keep warm.
From the perspective of DDEX, DDEX officially launched the Ethereum mainnet on January 9, 2018. At that time, there was no so-called DeFi ecology. The idea of DDEX appeared in the autumn of 2017. At that time, we saw that such an unfriendly exchange had such a large traffic, so do we have a chance to make a more usable dex? At that time, there were many new technologies that could be done, but good technology did not necessarily mean a good business.
The exchange is a good business with continuous hematopoietic ability, but the centralized exchange is also a business that cannot make people sleep well (stolen). So we chose the decentralized exchange track because we think it is a new technology + good business.
At the same time, later we also saw what the decentralized exchange DEX can do, but the centralized exchange CEX cannot: the interaction of smart contracts.
And this is also the essence of the DeFi ecology. The essence of each DeFi product is one or a group of smart contracts. The interaction between DeFi products is like building blocks with smart contracts. So we later open sourced the Hydro Protocol to provide various types of trading markets for various on-chain assets.
Heres the story of how it started. Looking back at DeFi now, perhaps this is the most suitable thing for Ethereum at this stage. EVMs are expensive and slow, so what would work for this setup? finance. The low-frequency and large-amount transactions of finance itself can prevent the current shortcomings of Ethereum from being an obstacle.
The second question, how does a DeFi project stand out from the crowd through its own unique design mechanism? In my opinion, the essence of DeFi is: Tokenize eveything, trade anytime, anywhere.
The most important indicator of DeFi is liquidity. Where does liquidity come from? Everyone can make more money before spending money on your products. Therefore, we say that if you make a DeFi product without allowing users to make money, it should not be done.
If you want your own DeFi products to occupy the market, you must give users arbitrage opportunities, or opportunities to make money. After all, the rise of the digital currency industry itself, one of the important sources of belief, is also the wealth effect. This is something beyond pure idealism. In other words: good technology + good business must be combined.
The third question is that financial projects generally need to be in direct contact with user assets. How can DeFi projects ensure the security of user assets? I think it depends on three aspects: smart contracts, oracles, and brands.
First of all, the category of DeFi has a broad sense and a narrow sense. Many semi-DeFi and cefi products also claim to be DeFi, but this is not a bad thing, and we do not require every link to be completely decentralized. Decentralization can ensure safety, but sometimes users do not need this sacrifice of efficiency bring security. Its a trade, trade-off. So, if you want to be completely decentralized, then please ensure that your contract is safe and the oracle machine is reliable.
(Science popularization: Most Defi projects involve accessing real market prices and other information on the chain. We call this stuff oracle. A decentralized oracle is currently lacking in the market, but it is needed.)
If you do not do complete decentralization under the balance, then please cherish the feathers and build a trustworthy brand.
Pan Chao, Head of MakerDAO China: The first question is why the project chooses DeFi and is optimistic about the prospects of the industry. When the MakerDAO project started, there was no concept of DeFi. In fact, there was no such thing as a stable currency at that time. Our original intention was to provide a decentralized basic stable currency on Ethereum, and later found that there is still a lot of room for imagination, a global money market and credit system.
The second question, how does a DeFi project stand out from many projects through its own unique design mechanism? Dont be imaginative, but absorb the wisdom of traditional finance. The network effect and user experience of the blockchain are very important.
The third question is that financial projects generally need to be in direct contact with user assets. How can DeFi projects ensure the security of user assets? ——Write the code well, do more audits, and choose the right public chain.
Lieyun Finance Wang Xuejing: Next, I would like to ask Mr. Gu Yanxigu, a blockchain and encrypted digital asset researcher of the expert observation group. As far as the current development of the Defi industry is concerned, which direction do you think is the most promising?
Gu Yanxi, a researcher of blockchain and encrypted digital assets: I think there are many subdivisions that have great development prospects. For example, distributed clearing based on blockchain technology will fundamentally subvert the clearing systems of the securities industry and the banking industry.
Therefore, the boundary between the banking industry and the securities industry will become blurred in the future. A user can directly hold digital stablecoins and digital assets in his wallet. He can pay with stablecoins at any time, or when the stablecoins are insufficient, he can immediately sell his digital assets on the exchange in exchange for stablecoins for retail payments. And all this is entirely due to the same underlying blockchain that supports the clearing of banks and securities.
In addition, another segment that I am very optimistic about is decentralized mortgage lending.
The essence of this mortgage lending is collateral management commonly used in the financial industry, such as in the securities industry. The business that everyone is most familiar with is securities lending, which is now run by securities firms. However, if it is done in an open financial way, many retail individuals can directly participate in lending securities to obtain interest.
Another application of this distributed mortgage lending is the stable currency generation mechanism. I think the main generation mechanism of a stable currency in the future is based on the mortgage generation of digital assets, and it must be done in a distributed manner.
Due to the gradual popularization and application of blockchain and encrypted digital assets, more and more real assets will run on the blockchain. In fact, digital currencies can be issued based on these assets. Issuing digital currency in a distributed manner (essentially collateral management) will allow more people to participate in the minting process. This also realizes everyone minting coins. And most importantly, a reasonable seigniorage can be obtained by participating in minting.
To sum up, I am personally very optimistic about distributed liquidation and mortgage lending, these two open financial models.
But I think that in the business of the modern open financial model, there is a misunderstanding that is to pursue a complete, open and decentralized financial model.
I think the development trend of open finance should start from a completely decentralized and digital asset-based approach, but if this model is to be expanded, it must be combined with a centralized approach under the premise of compliance. Only in this way can the largest volume of assets and funds in society be reached.
This is because the vast majority of assets and funds in the modern world operate under the scope of supervision. If open finance does not operate under the premise of compliance and can only develop in a local market on the edge, it will definitely not be possible. make it bigger.
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/Second Session: Roundtable 2 /
Chang Xingyu of ChainDD: Just now, all the guests have shared some views and opinions on the past and present of DeFi, so I will discuss it with you from the technical aspect. My question is:
The performance of the current blockchain restricts its wide application. Then you can talk about it from your own perspective, what are the current technical problems that restrict the development of DeFi? What are the solutions in the industry? Once the technology matures, what expectations or imaginations do you have for the new industry landscape?
Pan Chao, Head of MakerDAO China: In terms of performance constraints, such as the commonplace speed problem, I always think that the slow speed is not a problem (bug) of DeFi, but a feature (feature). Important large-value transactions are carried out on the main chain to ensure security, while small payments can be completed in the state channel or side chain.
Taking Dai as an example, large transactions can be sent on the Ethereum main chain (POW consensus), while small payments can use the xDai side chain (POA consensus) that pursues speed and convenience. This is also a layered solution similar to the large real-time payment system and delayed settlement system in the traditional currency system.
The biggest bottleneck of DeFi at present is on the asset side. Except for Bitcoin and Ethereum, there are no good assets with strong decentralization and high liquidity at the same time.
In order to enrich the asset side, it is necessary to synthesize traditional assets into the chain, which requires a trade-off of decentralization to a certain extent, but it is a necessary step. I think the better direction of DeFi should be open finance, not limited to complete decentralization. Because decentralization is not the goal, there are degrees. Finance, at least from an asset perspective, should not be discriminated against based on ideology.
Dai Shichao, Head of Market PR at Hydro Protocol DDEX: In my opinion, the performance of Ethereum is sufficient for DeFi. The performance of some decentralized exchanges, such as DDEX, has long been able to achieve the same transaction efficiency as centralized exchanges.
The real problem of DeFi now is not technical problems, but market problems. Looking for nails with a hammer, there is good technology, but it has not matched the large-scale market. And this problem involves the high threshold for users to use. It is too difficult to teach our parents, grandparents and grandparents to have the ability to manage private keys.
That is to say, DeFi also decentralizes the rights and obligations of self-managed assets, but not everyone has the ability to come to the crypto world and control such rights.
If you have to find a fragment that DeFi is currently missing, it should be the oracle machine I just mentioned. For example, for a leveraged transaction, the current market price of ETH is required for liquidation. Who will set this price? Where to get it? Now it is mainly for the project side to make a centralized oracle machine, take the prices of several mainstream exchanges, and make an average as the price information. But in this process, there is the possibility of doing evil.
The ideal state is to use a decentralized oracle. Third-party decentralized oracle solutions include Chainlink abroad and DOS Network in China. There is also Augur, which designs a set of consensus mechanisms by itself, which acts as an oracle machine. But this is not a technical problem, but a business logic, or the stage of ecological development has not yet reached this level. Everyone has not yet realized the importance of oracles.
The expectation for DeFi is to really do it: Tokenize eveything, trade anytime, anywhere. That is to tokenize any asset, trade anytime, anywhere, without identity, geography, or any threshold.
We talk about freedom of wealth, freedom of supermarkets, and freedom of cherries. What DeFi gives people is: freedom of trading. I wrote an article that systematically talked about this issue (Hydro community Sequoia also takes a gamble, unveiling the investment code of DeFi)
For the vision of DeFi, Uncle Caigen can be used to express: DeFi is a small step from carbon-based civilization to silicon-based civilization.
Li Lewei, founder of DUO Network: From the perspective of our development, the problem is also: the progress and acceptance of asset cross-chain (on-chain) is lower than expected.
The derivatives market requires assets with good liquidity and high market value. Most of the assets on the market that meet this standard are based on their own public chains. Therefore, it is necessary to cross-chain assets on other chains to DeFi smart contract platforms (such as Ethereum). Whether it is the original gateway, hash lock, or the new cross-chain technology under development, it has yet to be recognized by the market.
The current DeFi landing does not need to pursue 100% decentralization. In order to make a useful product, a centralized solution can be adopted for some functions. In the early stage of asset cross-chain, instead of trying to persuade users to accept new technologies, it is better to invite high-quality institutions that have already won the trust of customers as acceptors to launch products that meet user needs as soon as possible. If the demand is verified by the market, the development of related technologies will be more directional.
I basically agree with Pan Chao on this point of view.
Allen An, Co-Founder CEO of The Force Protocol: The current technical problems restricting the development of DeFi basically coincide with the technical problems restricting the development of Ethereum. They mainly focus on the transaction speed. From the aspect of product design, it can be close to or even surpassed The experience of centralized financial services, but currently all DeFi projects are facing the expansion problem of the underlying blockchain. At present, the industry revolves around expansion, and there are two types of expansion solutions headed by sharding and state channels. In the field of DeFi, both solutions have their place.
For example, at the level of sharding, in the future, we can consider making a special partition for DeFi services on Ethereum. Specific to each subdivision direction of the DeFi field, it can be continuously subdivided, and finally within a security controllable range , try to ensure that people serving the same service can complete on-chain operations in the same shard, taking into account both safety and efficiency.
For another example, in terms of state channels, technology projects headed by Celer have been developing for DeFi scenarios. By introducing state channel technology, high-frequency transactions can be carried out off-chain, and the final results can be placed on the chain, which can greatly improve financial performance. In terms of service efficiency, The Force Protocol team is also paying attention to the progress of projects like Celer, and will consider cooperating with such excellent expansion projects in the near future.
Chang Xingyu of ChainDD: I also talked about cross-chain technology just now, so I also want to ask, what is the biggest difficulty facing cross-chain at present, and when is it expected to make a breakthrough?
Guo Guanghua, Co-Founder of Lianwang Technology Founder of Substrate China Alliance: The biggest difficulty of cross-chain at present is: Due to the limitations of the cognition of the times, the previous public chains were too simple in design and lacked scalability, but they still occupied the digital currency Most of the market cap. For example, BTC has a single function. If you want to achieve a completely decentralized cross-chain, there is only one solution for light nodes. But it is impossible to write the light node code of any chain on the BTC chain.
For this kind of breakthrough progress, Chain X, which is running now, is a landing solution. The crossing from BTC to ChainX is completely trustless and does not require anyones intermediary to participate, because BTC light nodes are running on the ChainX chain. However, crossing back to BTC from the ChainX chain uses a compromise solution of multi-signature custody. This is already the most breakthrough progress for the traditional chain. If BTC is upgraded to support off-chain multi-signature algorithm in the future, there will be room for improvement.
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/ The third session: round table meeting 3/
Lianwen Gong Bo: Let’s talk about the collision between ideal and reality. At present, the entire blockchain industry is looking for incremental funds, and DeFi is no exception. Then everyone thinks:
1. Can DeFi projects attract Old Money? What is the reason why traditional financial funds have not yet entered the blockchain industry on a large scale? What concerns does the traditional financial community have about current blockchain projects?
2. An important concern of traditional finance for the digital currency market is its violent price fluctuations. Can the design mechanism of the stable currency make Old Money eliminate certain concerns and open the door for Old Money to enter DeFi?
Pan Chao, Head of MakerDAO China: Traditional funds have not entered on a large scale because there is no investment portfolio in the cryptocurrency market, and there is no hedging, and they are all betas of Bitcoin.
Old money is a good word, the name itself actually explains the problem. That is, cryptocurrencies need to have a money market (money market), that is, stable currency (funding) and derivatives (futures, etc) based on debt (debt), so that there can be a capital market (capital market) with a measurable rate of return (return). market), rather than the expected cash-out based entirely on the mysterious commodity (coin).
In addition, for old money, compliance and supervision are required, that is, if something happens *better* someone will stand up and cover it.
Dai Shichao, Hydro Protocol DDEX Market Public Relations Director: Thinking about this question is more important than answering it. Lets take a look at the four important DeFi financings from October 2018 to February 2019. This time period was chosen because it was the most bitter and coldest period in the digital currency industry. Traditional big-name VCs such as Sequoia, Bain, and a16z are still willing to invest when all kinds of funds are withdrawn.
So I think about two questions: Why are most of the DeFi projects we see are foreign developers?
Why was the cold winter period of digital currency at the end of last year, which was also the budding period of DeFi, and only foreign Old Money was willing to invest in these blockchain projects? At the same time, what are domestic developers and VC agencies doing? Is it because we are more anxious to make quick money and have less value and belief?
I would like to discuss this issue with you. But regardless of belief, whether Old Money invests in the blockchain or not, it needs to see your business model, and needs an expectation of being able to exit smoothly and get a return. From the perspective of VC, technology is very important, the team is very important, and it is also very important to tell a good story.
Li Lewei, founder of DUO Network: Have you ever thought that DeFi projects may not be disruptors, but the vanguard of Old Money.
The picture in my mind is: the DeFi ecosystem dominated by start-up teams is constantly exploring the boundaries of open finance. Only when a sufficiently large market demand is found and verified, Old Money and traditional financial capital can enter the blockchain industry on a large scale. This is also the point where compliance really becomes important. After that, the most successful DeFi projects may become new giants.
Other competitors may be acquired and consolidated by larger institutions. In the eyes of traditional financial institutions, the blockchain market has not shown enough significant disruption to the traditional financial scene. But from the individual level of institutional practitioners, they have seen the huge potential in this field. This is also reflected in the fact that financial institutions have moved relatively slowly recently, but people from institutions are still very active in entering the market.
About stablecoins: Widely accepted stablecoins are definitely a key part of the DeFi ecosystem. In addition to Old Money, it is also important for ordinary users to accept DeFi services. I think Old Money may care more about whether there are more stable assets in this market than stablecoins anchored to fiat currencies, such as fixed-income products based on mainstream assets and structured bonds based on project tokens. This is also the direction DUO is going to make efforts in the future.
Allen An, co-founder CEO of The Force Protocol: I think we still need to look at how to define Old Money. Different definitions of opportunities have different thinking and answers. Whether the so-called traditional financial circles are worried about the blockchain world, whether they will lay out in stages or test the water in the crowd may depend on the nature of funds, security and compliance issues.
Some uncontrollable risk issues in the blockchain ecology and the nature of funds and security attributes of traditional financial institutions are currently hedged too much, just like the hedging issues behind Nasdaq and any exchange in the blockchain world are the same .
Yes, as everyone said, stablecoins must be or may be a key part of the DeFi ecology. In fact, the establishment of a stablecoin mechanism to solve the violent price fluctuations only eliminates the old money’s impact on the entrance of funds and the period after the inflow of funds. Concerns, adjusting posture while running, have concerns, but there are still traditional funds actively opening the door to take a look.
The construction of The Force Protocol’s stablecoin system will be put into operation in the second half of Q3, and we have gradually implemented it for an excellent project party like reserve.
Lianwen Gong Bo: There is a natural conflict between the anti-censorship attributes of DeFi projects and the compliance requirements of financial projects in some links. How do you view this contradiction?
Senior Editor Hao Fangzhou: Lets look at this contradiction dialectically. The anti-censorship attribute of DeFi is mainly reflected in the issuance, transaction and payment of digital currency.
First of all, when the project party formulates monetary policies and financial models, it skips the regulatory agencies, and the risk control experience of the business layer mainly comes from the team and the community, which makes the DeFi project far away from the compliance requirements in the first step (at least in the original sin in the eyes of traditional regulation).
After that, when participants enter the transaction process, their on-chain identities are decoupled from their real identities, and the credit system in the traditional financial world is still based on the real-name system, which creates another point of contradiction.
I will try to understand the original intention of classical compliance: use centralized laws and regulations to protect the rights and interests of all participants and the relative fairness of market competition.
As for DeFi, it uses smart contracts, asset pledges, and decentralized resolutions to take into account both model innovation and risk control. (Of course, this also raises the threshold of cognition and use, making the current DeFi less inclusive)
Speaking of regulations, judging from past experience, regulatory technology and thinking are often lagging behind, but they are also developing and adjusting.
At present, we have seen that some blockchain security service providers and to G chain data organizations are helping policy parties with smart contract audits, AML, mapping rules between chains and real identities, etc.; there are also third-party hosting, Clearing, auditing and other infrastructure service providers are using the logic of the blockchain to transfer the successful experience of traditional financial supervision to DeFi.
Therefore, in the long run, DeFi will embrace regulation in order to expand the market, and regulation will also formulate norms that are more in line with the logic of DeFi to adapt to financial innovation.
Lianwen Gong Bo: There is a natural conflict between the anti-censorship attributes of DeFi projects and the compliance requirements of financial projects in some links. How do you view this contradiction?
Yang Mindao, founder of dForce Blockpower: Hello everyone. I entered the currency circle in 2013, participated in the Ethereum ICO in 2014, and subsequently participated in more than 30 projects, and we did PoS nodes, quantitative transactions, and launched the dForce decentralized open financial agreement protocol platform (the first chain interest-generating index stable currency USDx). Along the way, the entire ecology of the blockchain has participated, and I have deeply felt the process of everyones perception of cryptocurrency, digital assets, blockchain, PoW/PoS, DeFi, and stablecoins.
I have always said that stablecoins are the Holy Grail (holy grail) of crypto. If we talk about the entire digital currency movement, there are currently two killer applications that have actually landed, and all of them are financial applications: one is the financing of the original blockchain Mode - IxO mode; the second is a stablecoin.
Stablecoins actually hijack the network effect of legal currency through the blockchain and tokenize the huge stock of legal currency assets. This is a Trojan horse war launched by digital currency against traditional finance. Stablecoins will become the asset-pricing currency of digital currencies and the underlying infrastructure of all DeFi.
We only look at the M0 circulation of US dollars in the United States, which is about 3.2 trillion U.S. dollars, M1 is about 3.4 trillion U.S. dollars, and M2 is about 14 trillion U.S. dollars. Stablecoins are actually not just tokenizing M0, but extending tokenization to M1 and M2 through other protocol layers of DeFi (such as our interest-bearing index stablecoin USDx, Compound, Dharma for lending, and derivatives for derivatives) Protocols such as DyDx, Augur and Veil in the prediction market are all stretching the tokenization boundary of stablecoins), this process basically reconstructs the bottom layer of traditional finance.
In my opinion, it is not Bitcoin that can complete the reconstruction of the underlying currency, but stable coins.
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/Free Discussion Session/
Allen An, co-founder CEO of The Force Protocol: Mr. Yang, from the perspective of the design mechanism of stablecoins, there are currently two types of stablecoins that have been recognized by the market. PAX, TUSD, etc. The other is the stablecoin backed by encrypted asset pledge, which was first realized by BitShares. On Ethereum, MakerDAO has been successfully recognized by the market. Based on other mainstream public chains, there are also projects similar to MakerDAOs idea that are under development.
At present, from the perspective of compliance, stability, volatility, etc., Old Money will prefer the first type of stable currency to enter the market. This can be seen from the recent surge in the issuance of stable coins such as PAX. As for the second type of stablecoin, we believe that it is still not possible to effectively attract Old Money to enter the market at this stage. At this stage, DeFi projects can indirectly connect to Old Money by accessing PAX, USDC and other stablecoin projects to import for themselves More mobility. So I would like to ask, what do you think about the issue of Old Money?
Yang Mindao, founder of dForce Blockpower: Stablecoins are fungible. In fact, the entry path of Old Money has little impact on the choice of stablecoins. As long as DAI has sufficient liquidity in the secondary market, the money of these old mones will eventually be in DAI. There is actually no difference in USDC.
Li Lewei, founder of DUO Network: I agree that in the current market, the core competitiveness of stablecoins is long-term secondary market liquidity.
Allen An, Co-Founder CEO of The Force Protocol: Mr. Hao, after reading the question you just answered, “There is a natural conflict between the anti-censorship properties of DeFi projects and the compliance requirements of financial projects in some links, so what do you think about this? Contradictory? Maybe we have analyzed it ourselves. In the traditional financial field, non-compliance occurs frequently due to the dark side of human nature or other reasons. On the contrary, in the DeFi field, because a large number of operations and steps are operated by smart contracts. , reducing the interference of human factors on business as much as possible. In terms of meeting compliance requirements, we are more optimistic about the potential of DeFi.
Senior Editor Hao Fangzhou: I agree that smart contracts will reduce human interference. As you said, the premise is that DeFi is open to the existing regulatory authorities, and the degree of openness of regulation can also accommodate DeFi. At present, many stablecoins are doing well. Lending and DEX are still on the way to embrace supervision. I personally look forward to it optimistically.
Allen An, Co-Founder CEO of The Force Protocol: As for anti-censorship properties, at present, in addition to a few cryptocurrencies that highlight privacy and anti-censorship such as Grin, BEAM, and Monero, mainstream currencies such as Bitcoin and Ethereum are in the country. There is actually no real resistance to censorship in front of a machine.
For DeFi projects that provide services to mainstream people, they can use technology, process design and other methods to cooperate with regulatory authorities to open up review authority to ensure the compliance and sunny operation of their own business. As long as the DeFi project party does not actively touch Touching the regulatory red line of each country, can this contradiction be completely resolved?
Yang Mindao, founder of dForce Blockpower: Regarding the regulation of DeFi, we may first ask whether DeFi is actively embracing regulation, or regulation is actively adapting to the new species of DeFi.
The product form of DeFi completely subverts the traditional territorial supervision, that is, if you want to be supervised, you cant find a supervisor. You deploy a protocol on Ethereum. On a network without a centralized server, this protocol has no concept of territory. It is difficult for you to find a regulatory agency, so there is no way to be supervised. Then we can only regulate to adapt to new species. When we cannot adapt, regulatory arbitrage will inevitably occur. This is not only a problem for DeFi, but also for the entire blockchain asset.
