Unchained The Most Forkable DeFi Protocols on Ethereum - Ep.166
Apr 7, 2020
Kyle Samani, a partner at Multicoin Capital and a thought leader in blockchain, delves into the defensibility of major DeFi protocols on Ethereum. He evaluates the ease of forking these protocols, making a compelling case for the resilience of Maker while questioning the stability of certain decentralized exchanges. The discussion covers the competitive dynamics within DeFi, including the impact of stablecoin clearinghouses and emerging innovations. Samani's insights highlight the intricate balance of innovation and defensibility in the evolving DeFi landscape.
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MakerDAO Defensibility
- MakerDAO's defensibility lies in DAI's liquidity and usability, not just collateral.
- Widespread DAI adoption in apps and merchant acceptance creates a strong moat.
Tether's Defensibility
- Tether's dominance (80% of stablecoin market) demonstrates its defensibility, driven by its liquidity.
- Stablecoin clearinghouses could potentially impact Tether's widespread use as collateral.
Compound's Vulnerability
- Compound's defensibility is tied to its collateral pool, but forking it is relatively easy with subsidies.
- Third-party aggregators could shift loyalty based on yields, impacting Compound's liquidity.