Crypto News

DeFi market is held back by technical failures, says Minterest CEO

Published

1 year ago

January 30, 2022

DeFi still suffers from ease-of-use issues due to the legacy technical infrastructure, like Ethereum 1.0, upon which leading DeFi applications were built, says Josh Rogers, founder and CEO of digital investment platform Minterest.

Rogers explained that interacting with DeFi still requires a high degree of technical understanding, from knowing the various networks, creating wallets and interacting with exchanges – both centralised and decentralised – to understanding how tokenised models operate and deliver value to users.

“Competently using DeFi apps requires falling down a deep crypto rabbit hole in self-education, which acts as a barrier to entry for the potential user majority,” Minterest CEO said.

the emerging fracturing that occurs in new networks upon which DeFi is evolving, from Solana to Algorand or Polkadot, requires even more knowledge.

“It’s because asset transfer between these networks, each with their differing token economies and technical standards, is still not elegant and seamless, and while improving requires substantial further development before the general user will change their behaviour and move to DeFi,” he explained.

However, he added he believes that, as technology evolves, security also improves and regulation settles, the barriers to entry for the more conservative institutional investors will fall away, as they have in so many new financial offerings, and we will see significant institutional adoption of DeFi.

Goldman Sachs recently predicted the Federal Reserve will enact four quarter-percentage point rate hikes in 2022. Rogers claimed the Fed has flagged interest rate hikes for some time, and incremental increases will moderate liquidity in all investment markets.

However, he also believes the Fed’s action is not a surprise and much of the expectation has already been factored in, with rapid price decreases in key crypto including BTC, coming off highs since November.

“Crypto, however, is not just an investment asset and valuations are driven by far more than macro influences like US inflation and interest rates,” he said.

“Yes, they will have a moderating impact in the short term but it’s worth noting the following when it comes to tech valuations.”

The truth is, claims Rogers, the Web 2.0 tech sector has not experienced a crash since 2000 and the reason for that is the extraordinary value creation that has occurred in the online economy over the past two decades.

“Yes, there have been times when tech company prices have been considered over-inflated, but such events were simply overtaken by the freight training of value creation in the sector,” he explained.

“A good example is the relentless continuity of new online use cases such as e-commerce, search engines, social media, dating apps and the almost incalculable ways people and companies now interact.”

Rogers added that just like Web 2.0, crypto Web 3.0 will see a plethora of use cases whose value creation will steamroll through existing crypto valuations which will have a much more substantial impact than current US inflation concerns or BTC pricing.

“While crypto prices have moderated the past few months, liquidity in DeFi is still strong and liquidity growth has responded very positively to the latest US inflation numbers, given they were within expected ranges,” he said.

“At the end of the day, investors seek to maximise yield, and DeFi yield still leaves traditional options in the dust.”

Rogers said that, with overcooked equities markets, and record inflation on the rise, DeFi was starting to look attractive to institutional investors.

“Given broad DeFi adoption of stablecoins, where a token is pegged to the US dollar, institutions are able to benefit from higher yields than traditional markets without the volatility risk of Bitcoin, Ethereum or tokens associated with specific projects,” he explained.

“Additionally, there’s an emerging view that Bitcoin acts as a real hedge against inflation given the number of Bitcoins that can be circulated is fixed and the rate at which that occurs is predictable and transparent.

“Crypto regulation is slowly finding its feet with the adoption of Bitcoin, and with it is institutional investor confidence.”

Asked what’s stopping institutional investors from taking the leap into DeFi, and how DeFi can address these barriers, Rogers outlined three primary things…

“SEC KYC requirements of pooled funds ensuring users from prohibited jurisdictions are exempt, and onboarding fiat funds into crypto currencies with asset security,” he began.

“Buying and selling cryptocurrency with fiat currency is still relatively difficult despite being around for over a decade.

“The problem arises when users want to onboard or offboard from fiat money to crypto and vice versa.

“Legacy financial infrastructure is still a blocker, however Fintechs are working with traditional institutions to improve onboarding and offboarding, and this is happening at a significant pace.”

Secondly, he said most DeFi projects run on pooled funds and for large institutions. For those based in the US, a fundamental requirement is ensuring such pools are exempt from prohibited jurisdictions like North Korea and Crimea.

“DeFi is rapidly developing solutions for such issues and there are already emerging offerings designed specifically to cater to institutional frameworks like this,” he added.

When talking about how Minterest services the billions in Total Value Locked (TVL) in DeFi lending projects, with the specific aim of putting user benefits at its core, Rogers said the whole protocol was engineered to address the issues outlined earlier in terms of legacy technology issues.

“It ensures the value of liquidity mining is maintained as best as possible over time and has developed a powerful incentive structure for users to actively participate in the protocol’s governance,” he continued.

“Minterest also addresses the inefficiencies of the liquidation process that occurs in older DeFi protocols by turning the conventional model on its head with a unique buyback design where it captures all fees associated with liquidation activity.”

Related Topics:CEO DeFi Minterest Technical

Up Next

China pilots nationwide blockchain development over real-world use cases

Don't Miss

Nansen report shows crypto going multi-chain with DeFi and NFTs

Click to comment

Crypto News

Algorand Has Appointed JPMorgan high-flyer Staci Warden As Its New CEO.

Algorand appoints new CEO Staci Warden

Published

1 year ago

February 11, 2022

Abdul

Warden has been a member of the Algorand Foundation Board since September 2021 following a glittering career with JPMorgan, the Nasdaq stock exchange, and the US Treasury Department.

Algorand is actively targeting ecosystem growth in niches such as global crypto payment platforms, DeFi and NFTs. It is hoped Warden’s appointment will catalyse this expansion.

Speaking on the ALGO appointment, Staci Warden highlighted opportunities in the developing world alongside a commitment to the future of DeFi.

“I am excited to build on everything the Foundation has achieved to date, and will be focused on scaling our commitment to our community and our global partners,” she said.

“1.7 billion people in the world do not have access to finance, and the Algorand protocol has the speed, the security, and the decentralisation to address the problem of global financial inclusion at scale.

“By both ratcheting up our global ambitions as well as doubling down on our commitment to the DeFi ecosystem, I know that we will deliver tremendous value for both the Algorand ecosystem as a whole and the end-users it supports.”

The appointment of a new CEO marks an end to the leadership of outgoing Algorand CEO Sean Lee.

Lee served as CEO of the blockchain for 18 months and played a pivotal role in cementing Algorand’s market position throughout the sensational explosion in crypto markets in 2021.

During his time at the helm of Algorand, Lee prioritised community governance and sewed the seeds for the future of the ALGO ecosystem through the Accelerated Vesting program and launch of Viridis and Aeneas DeFi funding programs.

Commenting on his departure, Lee revealed he will be moving on to other projects in the crypto industry.

“I’ve decided to leave the Algorand Foundation to pursue new opportunities in the blockchain space,” said Lee.

“Seeing the transformative potential of the applications being built on Algorand, now is the time for me to explore those avenues.

“I have deep confidence in Staci’s ability to lead the Algorand Foundation and the Algorand ecosystem through its next growth phase.”

Crypto News

Manchester United selects Tezos as official blockchain partner

Published

1 year ago

February 11, 2022

Abdul

Manchester United has today announced a landmark multi-year partnership that will see Tezos featured on the Club’s range of men’s and women’s training kits.

Tezos-branded training kit will be worn by the first team squad prior to this weekend’s match against Southampton, introducing Manchester United fans to the partnership and Web3 technology through the Tezos blockchain.

Victoria Timpson, Manchester United’s CEO of Alliances and Partnerships, said it was an exciting partnership for Manchester United “because it aligns us with one of the most advanced, reliable and sustainable blockchains in an area of technology which promises to truly revolutionise the way that everyone, including the club and our fans, can interact”.

“We are especially pleased to be partnering with one of the most eco-friendly blockchains, using technology that is energy-efficient, limits carbon emissions and lowers costs, consistent with the Club’s wider efforts to promote environmental sustainability,” she said.

“Partnerships are at the core of our strength as a club, supporting the drive for success on the pitch, and we are delighted to welcome Tezos as the latest industry leader to join our family of partners.”

Edward Adlard, Head of Adoption and Business Development, Tezos Ecosystem added that, throughout its history, Manchester United had constantly evolved, with the support of its global community of fans and partners.

“Tezos will enable Manchester United to use blockchain and Web3 to transform fan, player, team, and partner engagement,” he said.

“The decision by the world’s greatest football club to select Tezos as its blockchain of choice is further validation that thoughtful design paired with strong security, low gas fees, and community-led innovation are the essential factors driving the next wave of adoption in the new digital revolution.”

In addition to the Tezos branding on the club’s training kit, the partnership will also include several new fan experiences built on the Tezos blockchain and a pledge to support Manchester United Foundation with ongoing donations in TEZ – the native currency of the Tezos blockchain – to train, educate and inspire young people within the local community.

Crypto News

Shiba Inu Announces Virtual Real Estate on Shiberse Ecosystem

Published

1 year ago

February 10, 2022

Abdul

In an attempt to enter the metaverse in 2022, the meme coin Shiba Inu has unfurled its virtual real estate ‘Shiba Lands’. The new realm of real estate will be available for public auction or purchase soon.

In this new venture, SHIB token holders can own a part of the Shiberse metaverse. Meanwhile, the meme coin has yet to confirm the advantages of owning the lands in its metaverse. So far, the project said that people owning land in Shiba Real Estate would gain a lot of benefits.

As tweeted by Watcher Guru, a media covering crypto news, Shiba Inu will declare the purchase period of virtual real estate soon.

JUST IN: Shiba Inu announces virtual real estate (Shiba Lands) will be available for purchase/actuation soon, as $SHIB is set to enter the Metaverse in 2022.— Watcher.Guru (@WatcherGuru) February 8, 2022

To prevent high gas fees, which happened in the Shiboshi NFT launch 2021, the Shiberse ecosystem will create a queue system for its land release. The queue system can process the sale more smoothly and in a much fair manner for customers.

LEASH coin holders will get priority access to the queue in the first period of land release. Afterward, the queue will be open to the public.

Shiba Inu has stated in its blog ShibaSwap:

This queue allows exclusivity by requiring interested parties to hold “$LEASH“, which gives priority and exclusive access to this first selling phase of the land plots in our Metaverse. In addition to the queue, we also have worked on an anti-dump system in order to protect $LEASH holders. The remaining lands will then unlock, and become available for the public after this exclusive selling process finalizes.

To highlight, the Shiba Land properties will initially be auctioned. Here, users can bid their land and location soon after the project announces the date of auction.

Earlier, virtual platforms like Decentraland, Gala Games, Sandbox, and Axie Infinity had fixed their position in the metaverse. Now, Shiberse has marked its growth in the metaverse which plows for more competition among other meta platforms.

Despite being the latest entry to the metaverse, Shiba Inu has gained wide attention from investors who believe in its developing potential.