фото показано с : beincrypto.com

BeInCrypto recently had the pleasure of catching up with Camila Russo, the founder of The Defiant. The Defiant is a content platform for decentralized finance (DeFi) that curates and analyses major DeFi developments.

Camila Russo is a prolific financial journalist, with eight years of working experience for Bloomberg News. She has covered emerging markets, European stocks and digital assets, and is currently writing a book on Ethereum with Harper Collins.

Russo talks about the ins and outs of the DeFi sector and the current boom it’s experiencing. Additionally, she also discusses the future of the new financial revolution and its possible applications in real life.

I think the DeFi boom is just beginning. The decentralized finance ecosystem, or open finance, will continue to grow and mature. It’s a better way to manage and trade value.

If so…

I think that like any other boom where there’s an opportunity to get rich, DeFi is also going to attract anything from bad projects to blatant scams.

I don’t think that murky DeFi companies can be avoided, nor that it’s desirable to avoid them. Because the more people there are experimenting with it, the greater the possibility of creating something valuable.

Data from IntoTheBlock that I frequently publish in The Defiant shows that a significant part of Ethereum (ETH) and DeFi token holders are whales, that is, they hold and trade large amounts.

There have been clear cases of market manipulation on DeFi. One of the most notorious examples was the bZx attack where the hacker siphoned $900,000 in seconds. There are several qualities about DeFi that make it vulnerable to manipulation:

All these qualities that benefit traders who want to take advantage of the token and protocol weaknesses, also benefit the rest.

Bitcoin will serve as a platform for some financial applications, but most of the DeFi activity is going to be on networks that allow for greater programmability, such as Ethereum. Bitcoin will become one more asset to use in the different applications of these ecosystems, as it is currently on Ethereum.

I think Latin America is already relevant for DeFi, with several developers and users based there. LatAm’s influence will grow and spread and build better bridges to transition from local currency to crypto.

I believe that because of the history of inflation, exchange controls, and the mistrust of institutions, Latin Americans understand better than many the value of a parallel and independent financial system.

Large DeFi projects such as MakerDAO, Aave, and Balancer have several team members in Latin America and Spain, even if they aren’t based in the region. Not entirely DeFi, but ‘Decentraland’ is one of Ethereum’s most important projects and is based in Argentina.

I prefer to remain neutral as a journalist, so I don’t play favorites.

I think DeFi is still too young and experimental for lending protocols to appeal to institutional investors in the traditional world.

But I believe that earning interest with deposited crypto will appeal to individual investors and other firms within the crypto environment, such as exchanges who want to get a higher return on their deposits.

It’s difficult to have a general opinion about central bank currency printing because each country has its own particular situation. But it’s true that there is a part of the population that does not agree with the handling of the economic crisis triggered by the pandemic.

For this group, it may be that an alternative system such as the one offered by DeFi may seem more attractive.

Yes, as I said before, the problems surrounding inflation and exchange controls make an independent and open financial system even more useful.

Dai is the main stable decentralized currency, and there are other stable currencies in DeFi and crypto that can compete with it, such as USDT and USDC. At the same time, there are tokens linked to different protocols, such as LINK, SNX, AAVE, COMP, YFI, which have their own characteristics.

Dai has a specific purpose which is to stabilize its value in relation to the dollar. This allows it to be a better means of payment and savings than more volatile cryptos.

But the DeFi protocols have uses that go beyond that. That’s the point, it’s not just about trying to be money or a store of value, and these tokens often serve to access that value.

If the question is whether we can challenge Dai’s hegemony as the main stable decentralized currency, the answer is clearly yes. Open-source protocols encourage and facilitate competition.

There is already evidence of an increase in demand for Dai in Argentina as a response to the rise of the blue dollar.

I believe that as more people become aware of the possibility of buying a digital currency tied to the dollar, and more are comfortable with downloading a wallet, there will be more and more demand because it is simply better to buy Dai than to buy dollars on the black market.

It’s safer and can be deposited in DeFi to generate interest.

The rise in the price of ETH was surely triggered by DeFi, at least in part, which clearly benefits ETH users. I believe that the scaling solutions in Layer 2 will help decongest Ethereum’s network in the short term since several of these technologies are already in production.

Simply buying tokens still only costs pennies in USD. Someone looking to invest small amounts can buy interest-bearing tokens like cDai. With that, they already generate interest on an asset linked to the dollar, and the transaction will not cost that much.

For now, the network effects of Ethereum are very strong. Most of the developers, users, and DeFi projects are there. But if the high gas costs and slow transactions continue, and Layer 2 solutions do not help in the short term, it may mean that little by little these teams and users will start to migrate.

I don’t make price forecasts.

The post The DeFi Boom, Its Present Fit and Bright Future: Camila Russo Interview appeared first on BeInCrypto.

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