Day1 of Web3Connect was concluded with the CEO of Huobi Singapore, Edward Chen, CEO of RockX, Chen Zhuling and Head of Investments at QCP Capital, Marcus Eng talking about how DeFi will change the way we earn.
In the world of finance, DeFi is slowly creeping into the space with certain levels of force and interest. While some from the TradFi space may not take a second look at this verticle 5 years ago, it has started to gain tracking even amongst the institutions and various venture arms.
Can CeFi or DeFi coexist?
This question has often been pondered upon. A world where both CeFi and DeFi taps into a common source of demand might be the optimal outcome for many but will it be inevitable that one will dominate market share over another?
Zhuling mentioned that “the market is still worrying, but we have a bullish vision for the future.” When the overall demand for Crypto increases, in the case of both parallels coexisting, will give birth to a world of newer innovation.
“These two serve different customer segments but could be overlaps in the future.” There is room for both verticles to grow side by side, and the same customer can use CeFi and DeFi for varying purposes.
An aspect of DeFi that shouldn’t be compromised
In DeFi, Edward mentioned how “you should not give your keys to any DeFi platform.” Anyone interacting with DeFi wants to make sure most of the settlements are on smart contracts and open-sourced.
“As DeFi progresses, I hope we are moving towards a direction where it would be easy for someone with a lack of technical expertise to verify a trustlessness of something they are interacting with.”Marcus
While this is often overlooked in DeFi, those who take the time to look into these finer details are taking the right steps in self-protection. Perhaps that is what being a participant in DeFi has to entail, being able to read basic smart contract code and identify red flags.
While there are two distinct camps, one who chase quick gains, instead of chasing protocols where you can earn the highest yield, starting with
While there are developments to make reading smart contract codes easier, it will be wise for an individual to learn the basics before diving head first into yields.
Liquid staking on DeFi ecosystems
Liquid staking comes with sustainable yield, a crucial component for DeFi. With Liquid staking redeeming eg. staked eth to eth will be made easy with a DeFi DEX. Some individuals are also exploring the ideas of leverage lending, where the lending rates and the yield of staking may grow in correlation with each other in the long term.
“Staking will impact how lending markets behave.” As seen with Ethereum moving towards PoS, there is a consensus that smart contracts working on PoS are the way to go in the road ahead for DeFi. Almost like a gold standard in this verticle of crypto.
ZhuLing also mentioned that “liquid staking also solves the liquidity issue, especially for individuals who are trading focused.”
Day 2 of Web3Connect is underway from 10am to 7pm on the 26th to 27th of September at Agrow Building, S388393. While key speakers will be present throughout the event for informative talks, participants are welcome to chill and connect throughout.
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: Chain Debrief