Capital Allocators – Inside the Institutional Investment Industry Ben Forman – Opportunities in DeFi (EP.256, Crypto for Institutions 2, EP.03)
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Jun 20, 2022 
Ben Forman, founder of ParaFi Capital, dives into decentralized finance (DeFi) and its opportunities. He shares his journey from traditional finance to crypto, spurred by the Satoshi white paper and Ethereum's launch. The discussion covers stablecoins' dynamics, governance in decentralized organizations, and unique token valuation challenges. Forman reflects on the importance of firsthand DeFi experience, shedding light on yield farming misconceptions and emphasizing mentorship for emerging fund managers. His insights promise a brighter future for those adapting in the evolving crypto landscape.
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Bitcoin Introduction
- Ben Forman's roommate introduced him to Bitcoin in 2014, sparking his initial skepticism.
- Reading the Satoshi white paper led him to question the nature of money and ultimately invest in Bitcoin.
Ethereum and MakerDAO
- Forman's interest shifted from Bitcoin to Ethereum upon discovering MakerDAO, a decentralized credit application.
- This sparked his realization of blockchain's potential beyond payments, particularly in simplifying complex financial processes.
ParaFi's Challenging Start
- Launching ParaFi Capital coincided with a bear market, making scaling and fundraising difficult.
- Henry Kravis, an early investor, advised Forman to persevere, citing similar challenges faced during KKR's inception.