Finance Redefined: The shadow DeFi conference in Miami! June 2-9
June 10, 2021. Summarized by summa-bot.
Compression ratio: 26%. 2 min read.
Even with the market downturn turning torrential, VC capital still runs free and institutions want to get on board the DeFi train.
While I managed to catch up with a handful of builders and big brains in the convention center, my time would have been better spent tracking down degens at the various satellite events, yacht parties, and nightclub meetups — the “shadow conference” for DeFi taking place while boomercoin maximalists talked over the same points they’ve been parroting for the better part of a decade.
While it feels like institutional adoption has been just out over the horizon for years now, there’s growing reason to believe that big investment bank money may finally be splashing around in DeFi pools before too long.
However, the work sounds more like an exercise in empathy than business: it involves long conversations about what the institutions want, exactly — more yield on dollars, exposure and custody, some kind of on-ramp to satisfy client demands — but when clients say “we want to do the crypto thing,” what do they mean and what’s actually possible?
Pseudonymous Yearn Finance security specialist “Doggy B” framed the barriers to involvement as one of singular, personal choice: whether or not an institution gets involved depends on the risk tolerance of the head lawyer at the particular institution — a state of affairs that feels absurd given the possible sums of money at play.
Don Tapscott talks about the Internet of Value, and the Internet of Value has many elements, but two of them are stablecoins and blockchain-based [currencies], and DeFi, when it comes to financial institutions. ”
Where the battle over decentralized information came with built-in protections for the masses — because of first amendment rights, there is no “ministry of information,” as Giancarlo puts it — the battle over decentralized finance will be tougher, as there are dozens and dozens of regulatory bodies to grapple with.