In defi, the building block would be a wide o designed space ofa incentive mechanism. One of my favorite aspects is the idea of torcanized balances. You can actually use the same type, the same collaterel in a bunch of different places. This would make the average person much more capital efficient. It's something that rich people do that poor people can't do because it's hard for them to do. The legal system does not have access to your house,. unlike your bank er....
In this episode, Su and Hasu talk about decentralized finance (DeFi).
Topics covered:
- What DeFi means to Su
- Why use DeFi over CeFi?
- Is the current demand organic or subsidized by VC money?
- Where users will allocate on the trust spectrum
- The delicate dance between regulatory arbitrage & attracting talent and capital
- The path to decentralization
- Most important DeFi use cases today and in the future
- How AMMs work and can be improved
- The core building blocks of DeFi
- Incentive mechanisms
- Tokenized balances
- Atomic transactions
- Will a boom in DeFi translate to ether?
Su Zhu is the CEO and CIO of Three Arrows Capital.
Hasu is a cryptocurrency researcher and writer.
Together, they publish on Deribit Insights and uncommoncore.co.