DeFi: Is it a new bottle of old wine, or is it a real future finance?

This session of "Conversation Chief" invited DU Le Network founder Li Lewei , The Force Protocol co-founder & CEO Allen An, MakerDAO China head Pan Chao, Hydro Protocol & DDEX market public relations leader Dai Shichao as the head of this round table Guest.

Four expert observation groups : Yang Mindao, founder of dForce & Blockpower , Gu Yanxi, blockchain and encryption digital asset researcher , Hao Fangzhou, senior editor of Planetary Daily , co-founder of Chain Network Technology & Guo Guanghua, founder of Substrate China Alliance .

Three media observation groups: Chain Wen Gong, the chain has Chang Xingyu and the hunting cloud financial Wang Xueyu.

At the same time, "Dialogue Chief" also welcomes the chiefs of various blockchains such as exchanges, wallets, mining, etc., and participates in our activities to jointly contribute to the development of the industry. For more information, please contact TokenInsight Chief Communications Officer Vivi: tokeninsight_data.

The following is the text of the "Conversation Chief" text version:

/ First link: Round table 1 /

Hunting Cloud Finance Wang Xueyu: It is understood that there are thousands of DeFi projects. From stable currencies to decentralized exchanges, wallets, payment networks, lending and insurance platforms, to critical infrastructure, markets and investment engines, the entire DeFi ecosystem is booming.

Earlier this year, blockchain software companies also said that decentralized financial services based on Ethereum will achieve 10 times subscriber growth in 2019. According to its incomplete statistics, there are currently hundreds of DeFi projects based on Ethereum. Based on this, I mainly have the following three questions I would like to ask the industry experts:

1. DeFi is a hot topic in the blockchain field since 2018. Many people think that DeFi is an inevitable trend in the development of the industry. I would like to ask each project party to choose the original intention of DeFi when entering the market. What is the reason for the prospect of DeFi industry?

2. How does the DeFi project stand out from the crowd with its own unique design mechanism?

3. Financial projects generally need to be in direct contact with user assets. How can DeFi projects ensure user asset security?

The Force Protocol co-founder & CEO Allen An: Defi is indeed being watched and mentioned by more and more people. The Force Agreement team has long noticed the potential of Ethereum in the application of distributed financial services. The team is studying And the investment process found that the use of smart contract technology combined with blockchain can better solve the trust problem in financial transactions, blockchain book disclosure, transaction traceability and other original characteristics can subvert the traditional centralized financial platform .

Just in time, starting in 2018, a group of companies and teams headed by Coinbase put forward the concept of DeFi, which coincides with the work done by the Force Agreement.

So our team is just in time to catch up with the rise of the concept of DeFi. In fact, whether it is DeFi or DeFin, or Open Finance, it is essential to use smart contract and blockchain technology to serve users and protect users. At the same time of asset security, more people can get real inclusive financial services from the popularity of blockchain technology.

How does the DeFi project stand out from many projects through its own unique design mechanism? We believe that the first thing that DeFi project should do is to polish its own technology . Only by ensuring that its products have no loopholes and ensuring the security of user assets can we To become a qualified project, in addition, the DeFi project also needs to improve the user experience, and a large number of optimizations in terms of transaction speed and usage process, and truly lower the threshold for user use.

Thirdly, unlike the centralized financial services, DeFi has gone through the intelligent contract technology to achieve the intermediary , the user owns the private key, and authorizes various financial services by authorizing the smart contract, minimizing the asset being centered. The possibility of misappropriation and theft by the organization.

Our team has always believed that the development and application of a solid product should be the basis for the survival and development of a DeFi project.

DUO Network founder Li Lewei : DUO's core team comes from the financial industry. We choose to enter the blockchain field and value its potential to subvert the existing financial system . For us, open finance is an ultimate goal, and blockchain technology is an important way to achieve it.

How does the DeFi project stand out from the crowd with its own unique design mechanism? I think good DeFi products should be able to empower other blockchain projects or create value for users and partners. The premium DeFi project will be dedicated to interacting with digital assets and eco-friends, if used in recent popular terms, also called “resonance”.

For user asset security, DUO's mission is to get users back to their familiar, proven operations. For example, our Derivatives Pass (CAT) is compatible with the most popular ERC-20 protocol, so users can manage these assets through their usual wallet instead of re-learning a process.

Hydro Protocol & DDEX Market PR Manager Dai Shichao: DeFi This concept really became something in October 2018, from the founder of the lending agreement dharma Brendan. Then several blockchain financial projects have been financing, vocalizing, and warming up.

From the perspective of DDEX, DDEX was officially launched on the Ethereum main network on January 9, 2018. At that time, there was no so-called DeFi ecology. The idea of ​​DDEX appeared in the fall of 2017. At that time, we saw that Germany and the exchange of such unfriendly exchanges had such a large flow. So, do we have the opportunity to make a better use of dex? There were a lot of new technologies that could be done at the time, but good technology doesn't necessarily mean a good business.

The exchange is a good business with continuous hematopoietic capacity, but the centralized exchange is another business (stolen) that can't sleep well. So we chose to decentralize the track on the exchange, thinking that this is a new technology + good business .

At the same time, we also saw that the decentralized exchange DEX can do, and what the central exchange can not do CEX: the interaction of smart contracts .

And this is also the essence of the DeFi ecosystem. The essence of every DeFi product is one or a set of smart contracts, and the interaction between DeFi products is like building blocks with smart contracts. So we later open sourced the Hydro Protocol for various types of chain assets, providing various types of trading markets.

This is a story about how to get started. Looking back at DeFi now, maybe this is the best thing for Ethereum at the present stage. EVM is expensive and slow, so what is suitable for this setting? financial. The low-frequency, large-value transactions of finance itself can make the current shortcomings of Ethereum not an obstacle.

The second question, how does the DeFi project stand out from many projects through its own unique design mechanism? I think the essence of DeFi is: Tokenize eveything, trade anytime, anywhere.

The most important indicator of DeFi is liquidity. Where does liquidity come from? Everyone can make more money and spend money on your products. So, we said that if you make a DeFi product and don't let the user make money, it is very inappropriate.

If you want your own DeFi products to occupy the market, you must give users arbitrage opportunities, or opportunities to make money. After all, the digital currency industry itself rises, and one of the important sources of faith is the wealth effect. This is something that must be something outside of pure idealism. In other words: good technology + good business to be combined.

The third question is that financial projects generally need to be in direct contact with user assets. How can DeFi projects ensure the security of user assets? I think it is to look at three aspects: smart contracts, oracles, brands .

First of all, the category of DeFi has a broad sense and a narrow sense. Many semi-DeFi and cefi products also say that they are DeFi, but this is not a bad thing. We do not require that each link be completely decentralized. Decentralization can ensure security, but sometimes users do not need this sacrifice efficiency. Brought security. This is a trade, trade-off. So, if you want to do a complete decentralization, then please ensure that your contract is safe and predictive.

(Popular: Most of the Defi projects involve the retrieval of information such as the price of the real market. This is called oracle. A decentralized oracle is currently lacking in the market, but it is needed.)

If you weigh and do not completely decentralize, then please cherish the feathers and build a trustworthy brand.

Pan Chao, head of MakerDAO China: The first question is the reason for the project to choose DeFi and optimistic about the industry prospects. At the beginning of the MakerDAO project, there was no concept of DeFi. In fact, there was no such thing as a stable currency. Our original intention was to provide the decentralized basic stable currency on Ethereum , and later found that the imaginable space is still very large, a global money market and credit system.

The second question, how does the DeFi project stand out from the crowd with its own unique design mechanism? Don't be tempted, you need to absorb the wisdom of traditional finance, the network effect of the blockchain and the user experience are very important.

The third question is that financial projects generally need to be in direct contact with user assets. How can DeFi projects ensure the security of user assets? Write good code, do more auditing, choose the right chain.

Hunting Cloud Finance Wang Xueyu: I would like to ask the expert observation group's blockchain and encrypted digital asset researcher Gu Yanxi Gu. As far as the development of the Defi industry is concerned, which direction do you think is the most promising?

Block Chain and Encrypted Digital Asset Researcher Gu Yanxi : I think there are many sub-areas that have great development prospects. For example , distributed clearing based on blockchain technology fundamentally subverts the clearing system of the securities industry and the banking industry.

So the boundaries between the banking and securities industries will become blurred in the future. A user can directly hold digital stable coins and digital assets in his wallet. He can pay with stable currency at any time, or when the stable currency is insufficient, immediately sell its digital assets on the exchange, in exchange for stable currency for retail payment. All of this is due to the fact that the bottom of the same blockchain supports the liquidation of banks and securities.

Another area that I am very optimistic about is the decentralized mortgage lending .

The essence of this mortgage lending is the collateral management commonly used in the financial industry, such as in the securities industry. The business that everyone is most familiar with is the securities lending. Now it is the brokerage business. However, if you use an open financial approach, many retail individuals can directly participate in lending securities to obtain interest.

Another application of this distributed mortgage lending is to stabilize the coin generation mechanism . I think that the main mechanism for generating a stable currency in the future is based on the collateralization of digital assets, and it must be done in a distributed manner.

Due to the gradual popularization of blockchain and encrypted digital assets, more and more real-life assets will run on the blockchain. It is actually possible to issue digital currency based on these assets . The distribution of digital currency in a distributed manner (essentially collateral management) will allow more people to participate in the coining process. This also realizes everyone's coin making . And most importantly, you can get a reasonable coinage tax by participating in coinage.

In summary, I personally are very optimistic about distributed clearing and mortgage lending, these two open financial models.

But I think that in the modern open financial model business, there is a misunderstanding is the pursuit of a complete, open decentralized financial model.

I think that the development trend of open finance should start from a completely decentralized, digital asset-based approach, but if this model is to be large, it must be combined with a centralized approach under the premise of compliance . This will reach the largest amount of assets and funds in society.

This is because most of the assets and funds in the modern world are operating under the supervision. If open finance does not operate under the premise of compliance, it can only be developed in a partial market on the edge. Bigger.


Hunting Cloud Finance Wang Xueyu: I saw the answer from Teacher Gu, I really feel that although we are in the early stage of a new industry, there are still many prospects for development. Thank you, Teacher Valley!

/ Second session: Round table 2 /

The chain has Changxingyu : Just the guests have shared some opinions and opinions about DeFi's past and present, then I am going through the technical aspects and discussing with you. My questions are:

The performance of the blockchain currently limits its wide application. Then you can talk about it from your own perspective. What are the technical problems that restrict the development of DeFi? What are the solutions in the industry? Once the technology is mature, what expectations or imaginations do you have for the new industry landscape?

Pan Chao, head of MakerDAO China : In terms of performance constraints, such as the speed of the old- fashioned , I always think that slow speed is not a problem of DeFi (bug), but a feature. Important large-value transactions are carried out on the main chain to ensure safety, while micropayments can be completed in the status channel or side chain.

Taking Dai as an example, large transactions can be sent in the Ethereum main chain (POW Consensus), while micropayments can use the xDai sidechain (POA Consensus) for speed and convenience. This is also a layered solution similar to the large-value real-time payment system and delayed settlement system in the traditional monetary system.

The biggest bottleneck of DeFi at present is on the asset side. Except for Bitcoin and Ethereum , there are no good assets with strong decentralization and high liquidity .

To enrich the asset side, it is necessary to synthesize the traditional assets , which requires a certain degree of decentralization, but it must take a step. I think DeFi's better direction should be open finance, not limited to complete decentralization. Because decentralization is not an end, it is also a degree . Finance, at least from an asset perspective, should not be treated differently because of ideology.

Hydro Protocol & DDEX Market Communications Director Dai Shichao : In my opinion, the performance of Ethereum is enough for DeFi. Some decentralized exchanges, such as the performance of DDEX, can achieve the same transaction efficiency as centralized exchanges.

The real problem with DeFi now is not the technical problem, but the market problem. Holding a hammer to find a nail, there is good technology, but it has not matched the large-scale market. And this problem involves the high threshold for users to use. It is too difficult to teach our parents, grandparents, and the ability to manage private keys.

That is to say, DeFi also decentralizes the rights and obligations of self-management of assets, but not everyone has the ability to come to the password world and control such rights.

If you are not looking for a piece of DeFi that is currently missing, it should be the oracle that I mentioned earlier. For example, a leveraged trade requires a current ETH market price for liquidation. Who is this price? Where can I get it? Now it is mainly the project party to make a centralized prophecy, take the price of several mainstream exchanges, and make an average as price information. But in this process, there is the possibility of doing evil.

The ideal state is to use a decentralized oracle. The third-party decentralized predictor solution has foreign Chainlink, the domestic DOS Network. There is also Augur's own design of a consensus mechanism that serves as a predictive machine. But this is not a technical issue. It is a business logic, or the stage of ecological development has not yet reached this level. You still don't realize the importance of the prophecy machine.

The expectation for DeFi is to do it: Tokenize eveything, trade anytime, anywhere. It is a pass of any asset, trading anytime, anywhere , without the boundaries of identity, geography and any threshold.

We say that wealth is free, supermarkets are free, and cherries are free. DeFi gives people the freedom of trading. I have written an article about this issue systematically (Hydro community "Sequoia also wants to gamble, unveil DeFi's investment password")

For the vision of DeFi, you can use the expression of Cao Genshu: DeFi is a small step from the carbon-based civilization to the silicon-based civilization.

Li Le Network founder Li Lewei : From our development perspective, the problem is also: the progress and acceptance of asset cross-chain (winding) is lower than expected.

The derivatives market requires assets with good liquidity and high market value. At present, most of the products that meet this standard on the market are based on their own public chain assets. Therefore, it is necessary to cross-chain other assets on the chain to DeFi's smart contract platform (such as Ethereum ). Whether it is the original gateway, hash lock, or the new cross-chain technology in development, it has yet to be recognized by the market.

The current DeFi landing does not have to pursue 100% decentralization. In order to make a useful product, a centralized solution can be used in some functions. In the early stage of asset cross-chain, instead of trying to persuade users to accept new technologies, it is better to invite high-quality institutions that have gained customer trust as an acceptor to launch products that meet user needs as soon as possible. If the demand is verified by the market, the related technology will be more directional.

I agree with Pan Chao in this regard.

The Force Protocol co-founder & CEO Allen An : The current technical problems that constrain the development of DeFi, and the technical problems that constrain the development of Ethereum are basically coincident, mainly focusing on the transaction speed , from product design, can be close to or even beyond Centralized financial services experience, but all DeFi projects are currently facing the expansion of the underlying blockchain. At present, the industry is expanding its capacity. It has two major expansion plans, including fragmentation and status channels . In the field of DeFi, both options have their place.

For example, at the slice level, in the future, you can consider making a partition for the DeFi service in Ethereum, which can be subdivided in the DeFi field, and can be continuously subdivided, and finally within a safe and controllable range. Try to ensure that the same service people can complete the chain operation in the same piece , taking into account safety and efficiency.

For example, in terms of state channels, the technology project led by Celer has been developed for the DeFi scene. By introducing state channel technology, high-frequency transactions are carried out under the chain, and the final result is put on the chain , which can greatly improve finance. The efficiency of the service, the Force Agreement team is also concerned about the progress of projects like Celer, will consider cooperation with such excellent expansion projects in the near future.

The chain has Changxingyu: I just talked about cross-chain technology, then I also want to ask, what is the biggest difficulty facing cross-chain now, when is there a breakthrough?

Guo Guanghua, co-founder of Chain Network Technology & Substrate China Alliance : The biggest difficulty in cross-chaining at present: In the past, the public chain was too simple and lacks scalability due to the limitations of the times, but they also occupied digital currency. Most market value. For example, BTC has a unique BTC function. If you want to completely decentralize the cross-chain, there is only one scheme for the light node. But it is impossible to write the light node code of any chain on the BTC chain.

This breakthrough development, now running Chain X is a landing solution. From BTC to ChainX, it is completely trustworthy and does not require anyone to participate in the middle, because the BTC light node is running on the ChainX chain. But from the ChainX chain back to the BTC, the compromise scheme of multi-sign hosting is used. This is the most breakthrough development for the traditional chain. In the future, if the BTC upgrade supports the multi-signing algorithm under the chain, there will be room for improvement.

Another big breakthrough is Polkadot. His underlying framework, its own cross-chain, scalability and other excellent blockchain attributes, can solve the problem of the immature public chain technology. That is to say, on the day when Polkadot got up, as long as the chain started with substrate, it has its own cross-chain attribute. Cross-chaining is as simple as setting up router Wifi. Polkadot's main time is probably at the end of this year, which is a breakthrough after the end of this year.

/ Third link: Round table 3 /

Chain Wen Gong: Let's talk about the collision between ideal and reality. At present, the entire blockchain industry is looking for incremental funds. DeFi is no exception, then everyone thinks:

1. Can the DeFi project attract Old Money to enter the market? What are the reasons why the traditional financial sector has not entered the blockchain industry on a large scale? What are the concerns of the traditional financial community about the current blockchain projects?

2. Traditional finance A major concern for the digital currency market is the volatility of its prices. Can the stable currency design mechanism make Old Money eliminate certain concerns and open the door to Old Money's DeFi?

Pan Chao, head of MakerDAO China : Traditional funds have not been entered on a large scale because the cryptocurrency market does not have a portfolio and there is no hedging. It is a Bitcoin Beta.

The word Old money is very good, and the name itself actually explains the problem. That is, cryptocurrencies need to have a money market, that is, debt-based funds and futures, etc., so that there can be a capital market with measurable return (capital). Market), rather than the expected cashout based entirely on mystery goods (coin).

In addition, for old money, compliance and supervision, it is an accident * best * someone stood up.

Hydro Protocol & DDEX Market Public Relations Officer Dai Shichao : This question is more important than the answer. Let's take a look at the four major DeFi financings from October 2018 to February 1919. This time period is chosen because it is the hardest and coldest period in the digital currency industry. The traditional big-name VCs such as Sequoia, Bain, and a16z are still willing to invest when various funds are withdrawn.

So I think about two questions: Why do the DeFi projects we see are mostly foreign developers?

Why is the winter of the digital currency at the end of last year, which is also the beginning of DeFi, only the old Old Money is willing to invest money in these blockchain projects? At the same time, what are the domestic developers and VC organizations doing? Are we more anxious to make quick money and less value beliefs?

This question is quite willing to discuss with everyone. But aside from the belief, Old Money does not invest in the blockchain. It is necessary to see and see your business model, and you need an expectation of a smooth exit and a return. From the perspective of VC, technology is very important, the team is very important, and it is important to tell a story.

Li Le Network founder Li Lewei : Have you ever thought that the DeFi project may not be a subversive, but the leader of Old Money.

The picture in my mind is that the DeFi ecosystem, which is based on the startup team, constantly explores the boundaries of open finance. When it was found and verified that there was a large enough market demand , Old Money and traditional financial capital could enter the blockchain industry on a large scale. This is also the node where compliance really becomes important. After this, the most successful DeFi project is likely to become a new giant.

Other competitors may be acquired and integrated by large institutions. In the eyes of traditional financial institutions, the blockchain market has not yet demonstrated a subversive subversion of traditional financial scenarios. But from the individual level of institutional practitioners, we have already seen great potential in this field. This is also reflected in the relatively slow movement of financial institutions in the near future, but the entry of people from institutions is still very positive.

About Stabilizing Coins: The widely accepted stable currency is definitely a key part of the DeFi ecosystem. In addition to Old Money, it is also important for regular users to accept DeFi services . I think that Old Money may be more concerned with whether there are more stable assets in this market than stable coins that anchor legal currency, such as fixed-income products based on mainstream assets and structured bonds based on project pass. This is also the direction that DUO is going to take the next step.

All Force An, Co-founder & CEO of The Force Protocol : I think I still have to look at how to define Old Money. Different definitions of opportunities have different thinking and answers. Whether the so-called "traditional" financial community is worried about the blockchain world or whether it is a staged or on-the-spot test may depend on the nature of the funds, security and compliance issues.

Some uncontrollable risk issues in the blockchain ecosystem and the financial nature and security attributes of traditional financial institutions are currently hedged too much, just as the hedging problem behind any NASDAQ and blockchain world is the same. .

Yes, as everyone said, the stable currency is definitely or may be a key part of the DeFi ecosystem. In fact, the establishment of a stable currency mechanism to solve the price volatility is only the old money’s entrance to the capital and the post-financing period. Concerns, adjustments in running, there are concerns, but there are still traditional funds to open the door actively to see.

The construction of the Force Agreement's stable currency system is about to be connected and operated in the late Q3. Similar to the excellent project parties such as reserve, we have gradually landed.

Chain Wen Gong: There are natural conflicts between the anti-review attributes of certain parts of the DeFi project and the compliance requirements of financial projects. How do you view this contradiction?

Hao Fangzhou, senior editor of Planetary Daily: This contradiction is dialectically. DeFi's anti-examination attributes are mainly reflected in the issuance, trading and payment of digital currency.

First, when the project side formulates monetary policy and financial model, it skips the regulatory body. The business layer's risk control experience mainly comes from the team and the community, which makes the DeFi project far from the compliance requirements in the first step (at least in The traditional supervision has the original sin in the eyes.

Later, when participants enter the trading session, their chain identity is decoupled from the real identity , and the credit system of the traditional financial world is still based on the real name system, which creates another point of contradiction.

I will try to understand the original intention of "classical compliance" : to protect the rights of all parties and the relative fairness of market competition with centralized laws and regulations.

For DeFi, it uses both smart contracts, asset pledges, and decentralized resolutions to consider model innovation and risk control. (Of course, this raises the threshold for cognition and use, making the current DeFi less "inclusive")

Speaking of compliance, from the past experience, regulatory technology and thinking are often lagging behind, but they are also developing and adjusting.

At present, we have seen some blockchain security service providers and to G's chain data organizations, helping policy parties to do smart contract audits, AML, mapping rules between links and real identities, etc. Infrastructure service providers such as clearing and auditing are using the logic of blockchain to move the successful experience of traditional financial regulation to DeFi.

Therefore, in the long run, DeFi will embrace regulation in order to expand the market, and the regulation will also develop specifications that are more compliant with DeFi logic to adapt to financial innovation.

Chain Wen Gong: There are natural conflicts between the anti-review attributes of certain parts of the DeFi project and the compliance requirements of financial projects. How do you view this contradiction?

Yang Mindao, founder of dForce & Blockpower: Hello everyone. I have been in the currency circle since 13 years, 14 years of participation in Ethereum ICO to participate in more than 30 projects, and we are doing PoS nodes, quantitative trading and launching dForce decentralized open financial agreement protocol platform (the first push on the chain) Type index stabilized currency USDx). Along the way, the entire ecology of the blockchain has been involved, and the process of cognitive change in cryptocurrency, digital assets, blockchain, PoW/PoS, DeFi, and stable currency has been deeply felt.

I have always said that the stable currency is crypto's Holy Grail (Holy Grail). If the whole digital currency movement, there are two real-world killer applications, and all of them are financial applications : one is the financing of the blockchain. Mode – IxO mode; the second is stable currency.

The stable currency actually hijacks the network effect of the French currency through the blockchain, and tokenizes the huge amount of legal currency assets. This is the battle of the Trojan horse launched by the digital currency against traditional finance. Stabilizing coins will become the asset pricing currency for digital currencies and the bottom-level infrastructure for all DeFi.

We only look at the US dollar M0 circulation in the United States is about 3.2 trillion US dollars, M1 is about 3.4 trillion US dollars, M2 is about 14 trillion US dollars. Stabilizing coins are actually not just tokenizing M0, but deferring tokenization to M1, M2 through other protocol layers of DeFi (such as our index-type stable currency USDx, borrowing compound, Dharma, derivatives) Agreements such as DyDx, which predicts the market's Augur and Veil, are all stretching the token boundary of the stable currency. This process basically reconstructs the bottom of traditional finance.

I think that it is not bitcoin, but stable currency, that can accomplish the underlying reconstruction of the currency.

The current stable currency market is Lily, and the most mainstream financing is the field, indicating that the market verification has been completed. However, this will be an unusually crowded track, and the window period will shrink sharply and may close completely by the end of next year. With the entry of mainstream institutions (JPM, Facebook), there will be a big impact on the French currency stable currency. Therefore, we see that Circle's USDC is also gradually opening up the coinage rights, hoping to accelerate their coinage and promotion through the alliance chain model.

/ Free discussion link /

The Force Protocol co-founder & CEO Allen An: Mr. Yang, from the perspective of the design mechanism of the stable currency, there are already two types of stable coins that have been recognized by the market. A large category is the stable currency of the legal currency pledge endorsement , such as USDC. PAX, TUSD, etc. The other type is the stable currency of the pledge of the pledge asset . It was first realized by the bit stock. In Ethereum, MakerDAO has been successfully recognized by the market. Based on other mainstream public chains, projects similar to the MakerDAO idea are under development.

At present, from the perspective of compliance, stability, volatility, etc., Old Money will prefer the first type of stable currency to enter the market. This point can be seen from the surge in the recent circulation of stable currencies such as PAX. For the second type of stable currency, we believe that it is not effective to attract Old Money to the market at this stage. At this stage, the DeFi project can indirectly connect to Old Money and connect to itself by accessing PAX, USDC and other stable currency projects. More liquidity. So I would like to ask, what do you think about the old Money question?

The founder of dForce & Blockpower Yang Mindao: The stable currency is fungible. In fact, the path of Old Money entering the market has little effect on the stability of the currency selection. As long as the DAI has sufficient liquidity in the secondary market, the money of these old mone is in the DAI. Still in the USDC, there is no difference.

Li Le Network founder Li Lewei: Agree, under the current market, the core competitiveness of stable currency is long-term secondary market liquidity.

The Force Protocol co-founder & CEO Allen An: Mr. Hao, read the question you just answered. “There is a natural conflict between the anti-review attribute of certain aspects of the DeFi project and the compliance requirements of financial projects. How do you view this? A contradiction?" We may analyze it ourselves. In the traditional financial field, the phenomenon of non-compliance caused by the dark side of human nature or other reasons is frequent. On the contrary, in the field of DeFi, a large number of operations and steps are operated by smart contracts. The biggest possibility is to reduce the interference of human factors on the business. In terms of meeting the compliance requirements, we are more optimistic about the potential of DeFi.

Hao Fangzhou, senior editor of Planet Daily, agrees that smart contracts will reduce human interference. As you said, the premise is that DeFi is open to existing regulatory authorities, and the degree of openness of regulation also allows for DeFi. At present, many stable coins are doing well, and lending and DEX hug supervision are still on the road. I personally look forward to it.

The Force Protocol co-founder & CEO Allen An: As for the anti-censorship attribute, currently, in addition to Grin, BEAM, Monroe and other cryptocurrencies that highlight privacy and anti-censorship, Bitcoin, Ethereum and other mainstream currencies are in the country. In fact, the machine can not really resist the review.

For DeFi projects that provide services to the mainstream, you can cooperate with the regulatory authorities through technology, process design, etc., open the review authority, and ensure the compliance and sunshine operation of your business. As long as the DeFi project does not actively touch Touching the red line of supervision of various countries, can this contradiction be completely resolved?

DForce & Blockpower founder Yang Mindao : DeFi's regulatory issues, we may first ask, is DeFi actively embrace supervision, or supervision to actively adapt to the new DeFi species.

DeFi's product form completely overturns the traditional territorial regulation, that is, you want to be supervised, and you can't find a regulator. You deploy an agreement on Ethereum. On a network without a centralized server, this protocol has no territorial concept. It is difficult to find a regulatory agency, so you don't want to be supervised. It can only be regulated to adapt to new species. When it is not adaptable, regulatory arbitrage will inevitably occur. This is not just DeFi, it is also a problem with the entire blockchain asset.