2min chapter

"Moment of Zen"  cover image

E15: Nic Carter on Balaji's Bet, Operation Chokepoint 2.0, and the Fed's financial crisis

"Moment of Zen"

CHAPTER

The Limitations of DeFi

There doesn't seem to be a lot of credit right or a fractional reserve like most loans are collateralized. There's protocols on DeFi which introduce credit but they all have a legal wrapper so that there's recourse in the like legal traditional world. I think it becomes much more interesting when we have persistent identity in DeFi where you have some motivation to keep and sustain a single identity even if pseudonymous and then engage in transactions to build up your credit history.

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