LIVE from RareEvo: TradFi vs DeFi Stablecoins (Lessons from Hacks, Policy, and Global Adoption)

Oct 8, 2025

Explore the intriguing dynamics between TradFi and DeFi stablecoins, highlighting their unique risk profiles and the impact of the Genius Act on regulatory clarity. Discover how platforms like Curve Finance ensure liquidity and stability in the space. Gerrit delves into the real-world implications of crypto adoption in high-inflation countries like Argentina, and discusses the dual role of AI in enhancing crypto security while posing new risks. The conversation blends insights on financial technology, regulation, and the future of digital currencies.

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INSIGHT

Regulatory Clarity Unleashed TradFi Stablecoins

The Genius Act created a clear regulatory path that unlocked huge TradFi stablecoin issuance on-chain.
Successful TradFi stablecoins lean heavily into DeFi to bootstrap liquidity and adoption.

INSIGHT

Smart-Contract Risk Dominates DeFi

DeFi stablecoins carry concentrated smart-contract and protocol risks that TradFi ones avoid.
A single bug in immutable code can drain funds with no recourse.

INSIGHT

Different Collateral, Different Risks And Yields

TradFi stablecoins are usually dollar-backed and carry banking-system exposure rather than smart-contract risk.
TradFi issuers often cap yields, so DeFi can supply higher-return opportunities.

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Gerrit, developer relations at Curve Finance, discusses the unique risks and rewards associated with DeFi stablecoins, and how increased regulatory clarity has fueled the rise of TradFi stablecoins. He also spotlights the crucial role of platforms like Curve in providing essential liquidity and stability, ensuring the continued growth and reliability of the stablecoin sector.

Key Takeaways:

Key differentiators between TradFi and DeFi stablecoins, including their risk / reward profiles
The significance of the Genius Act in transforming the stablecoin landscape
How regulatory clarity has spurred the growth of TradFi stablecoins, and why their success often ties to their integration within the DeFi ecosystem
How AI could both exacerbate and solve problems in crypto, empowering hackers to find exploits faster and increase phishing risks
Why crypto adoption surged in countries like Argentina and created real-world utility that outpaced U.S. adoption

Guest Bio: Gerrit has been on-chain since 2014. He joined Curve Finance in 2020, helping shape the decentralized protocol powering DeFi stablecoin and crypto markets by enabling high-yield on-chain savings, protected borrowing, and low-slippage swaps on EVM chains.

As a startup founder with deep AI roots, Gerrit launched the first AI-powered résumé grader back in 2008. He’s taught courses at the University of Washington, on topics ranging from AI to blockchain to financial technology, and holds an MBA from MIT with a focus on Entrepreneurship and Innovation. He's also a founding member of Leviathan News, a Web3 news aggregator.

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The Brave Technologist is here to shed light on the opportunities and challenges of emerging tech. To make it digestible, less scary, and more approachable for all!

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Produced by: Sam Laliberte