As the world of finance continues to discover the utility of blockchain as a whole, wider DeFI adoption is becoming less of an idea and more so an achievable goal within reach.
And with every dapp created, the restrictions upon entry for the average consumer becomes lower making wider adoption a matter of when not if.
With this in mind, Level01’s founder, Jon Loi, took some time to offer his insight regarding DeFi as well as its adoption into the mainstream consciousness.
Interviewer: With the total value locked in the crypto DeFi market recently crossing $1 billion, what are your thoughts about the pace of growth thus far?
Jon Loi: The pace at which the Decentralized Finance industry is growing is a vote of confidence and showcase of increasing adoption/awareness in decentralized systems. The majority of value is staked in lending protocols: because of these protocols collateralized and transparent nature with potential dividend upside, it becomes attractive to investors leading to the quick pace of adoption. Other industries such as financial trading is also gaining pace as evident in the growing interest in direct p2p trading platforms, such as Level01’s Derivatives Exchange that facilitates transparent and autonomous settlement for the trading of options contracts.
Interviewer: What are the likely pathways for DeFi to move beyond sub-niche status and become a full-fledged financial market? What are the onramps do you see for the masses to get involved with DeFi dApps?
Jon Loi: I think easier entry to DeFi platforms and the industry as a whole is through gateways that are already familiar to the general public such as card payment systems, e-wallets, and direct banking networks. These ‘fiat on-ramps’ ease the transition of value transfer from the familiar fiat store of value to digitized cryptocurrencies and blockchain products.
Naturally, DeFi products involve a certain level of self-proficiency and tech savviness, for example: wallet management and minimum understanding of different blockchain protocols. To transition to a more mainstream and full fledged market, DeFi products must deliver a more user friendly experience to the less initiated general public.
Interviewer: Do you expect DeFi lending protocols to be able to handle matters like repayment and defaulting of loans once these products become mainstream?
Jon Loi: I do believe with the advancement in blockchain technologies and given the fact the new wave of digital assets can be secured by programmable smart contracts, the future of DeFi is very bright and the right way forward for more transparent and trustworthy platforms.
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