The founder of defi-related fintech Yield anticipates that 2021 will be the year when decentralized finance (defi) will become a “general term” in the financial industry as the sector is now taking this seriously and R&D laboratories built.
The financial industry is now taking Defi seriously, says the expert
During an interview with news.Bitcoin.com, Tim Frost, who was also involved in the early stages of the development and growth of crypto companies such as QTUM, NEO, Paxful, and Polymath, predicted that in the next 12 months the total locked value would be will exceed $ 100 billion in the defibrillator industry. He added:
Defi will go through some cycles in 2021, but clear winners and value propositions will become clear and precise.
Defi platforms like Yield, which recently raised $ 3.4 million from BnkToTheFuture, Alphabit Fund, as the first hybrid round backer, have caught the attention of other companies for initial funding.
Also founding member of the digital banking platform, Wirex, said that as with any new financial market innovation, there will always be speculation and inevitable inefficiencies. He believes these are more prevalent in connection with cryptocurrencies and Defi’s peer-to-peer (P2P) nature.
However, he went on to explain why investors are interested in Defi:
For some investors, these are risks they don’t want to take. However, it can be assumed that the “risk-adjusted return,” the trade-off between risk and expected returns, or the risk premium an investor charges for investing in defi instruments, is of course measured in terms of other mature returns. Generation of financial instruments. We see this today in the oversized returns (> 1,000% APY) that can be achieved with complex liquidity mining strategies and re-mortgage techniques.
Regarding productive agriculture, Frost stated that it “opened eyes to many” as it paid much attention to defi, “and while much of the current form we know of productive agriculture will not last, becomes the basic concept of The provision of liquidity and the generation of returns are very sustainable and the basic requirements for profitable agriculture. “
Safety in the defibrillator industry
The defibrillator industry also made headlines in 2020 due to security breaches during the year. Frost commented on whether it is a major weakness of Defi these days when he pointed out that people are often “too rushed” on these types of topics:
To use a financial company safely, you need to conduct full technical and business due diligence. Many defi projects are simply not fully analyzed and checked before they go live. Without proper procedures, the security gaps are high and it is not safe to invest capital. The defibrillation industry needs to mature and adopt better processes.
According to research by Crypto Exchange Crypto.com that surveyed 29,574 users, mostly NFT, 74% of respondents said they had used Defi products.
Do you agree with Tim Frost’s thoughts on the defibrillation industry? Let us know in the comments below.
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