We have a better , more efficient frictionless platform to perform loans , liquidity and to enable any average joe to become a lender. Why do we still have banks ? I thought they would be pissing their pants by now. Like a donkey rider looking at a car for the first time
Why do we still not see young people running to open some defi account somewhere to get more than the miserable 0.1 interest we get in Europe at a 15% inflation ?
I see banks diversifying. But what baffles me the most is that you talk to some senior bank professional and they don’t even know about this. Its not an issue for them and I don’t blame them.
I want to see some serious bank killer. Am I missing something ? Is it around the corner ? Are we still 10 years away from it ?
Because it’s packed full of scams and rugn pulls and it’s hard to figure out how to use even for someone who is pretty well versed in crypto and tech
Defi is still really technical and difficult to understand. 99% of defi projects are rug pull Ponzi schemes too. Or at least were a couple of years ago when I was into it and doing degen farming. But this kind of ruins the credibility of the entire community. Even if things like aave, curve, and beefi are legit.
Until people can simply deposit their money into an account and get their guaranteed interest compounded to it each month we probably won’t see mass adoption. Transferring thousands of dollars across chains, exchanging them to different coins, having to change projects to stay profitable every couple of weeks, paying gas fees, etc. I personally was over it after a few months and just moved my money out and bought Bitcoin with it instead. No one wants to make handling their money that complicated.
Also, the more people that flood to defi the less the interest rates will be. So careful what you wish for.
Banks have been around since ancient Babylonia.
Defi summer was in 2020.
It will take time.
> Why do we still have banks ?
Really? How do you think an economy can hold itself without banks? What financial institution would play the role of monetary multiply?
“Zero risk” US bonds are selling with 5% interest right now. I can buy those in under 30 seconds in my Fidelity checking account.
Defi is still complicated to get started with, easy to fuck up technically, and it turns out that regulations help protect folks even if they increase costs and in an environment filled with ever more scams and failing companies people want to feel safe.
The underlying DeFi infrastructure is still too immature to provide simple non-custodian, low-fees dApps. Account abstraction, L2 chains and seedless wallets are still fairly new. Wallet-as-a-Service and Base from CB have just recently been announced. Despite all the awesome use cases DeFi can enable, it must do it by being way cheaper, easier, more trustworthy and convenient than the current banks.
Fighting against banks directly might not be the best approach to offer DeFi use cases to the world. Enabling banks to adopt some DeFi solutions to gain a competitive advantage could be a better approach. At the end of the day, most end users don’t care about the underlying infrastructure (DeFi, TradFi, CeFi,..) as long as they don’t get ripped off.
Financial services industry is heavily regulated. Even major public crypto companies like Coinbase face major legal risks when they provide innovative services such as staking as a service. SEC still considers that most tokens are unregistered securities.
Cherry on the cake, the amount of scams and get-rich-quick schemes bring the DeFi community to its knees. 1 step forward, 3 steps back. Best ways for banks to keep up the status quo, is to let the crypto community do what it does best: pump and dump schemes
These are really many significant hurdles for tech founders who try to innovate in this industry while playing by the rules. Kudos to all of them.
Because it’s not easy for the every day person to use.
Just the conversation of setting up a wallet and onboarding money is complicated and risky enough.
Why cannot imaginary coins and overcollateralized loans with them replace banks? Not sure OP, you tell me.
After all shady stuff that went on. I don’t think it will ever be the same with trust of the people. I been in crypto since 2007 and I even lost faith. It’s too complicated for the normal person
I know a lot of founders of “reputable” projects and crypto is unfortunately full of scammers. I suspect lots of hacks are inside jobs, and plenty of founders of potentially great projects will dump their token as soon as they can and move on to something else.
That said, cryptos also just not ready for the mainstream. It’s too hard to use and very risky with all these hacks
> We have a better , more efficient frictionless platform to perform loans , liquidity and to enable any average joe to become a lender
We absolutely do not. Apart from the scams, hacks and implosions that keep people away, how are you going to get a mortgage on defi? A business loan backed by contracts? etc.
The needs of the participants in the real economy are not even close to being met by defi.
0.1% interest rate? Did you just wake up from hibernation? I’m getting 5% on my USD (US Treasury bills), and as an added bonus my life savings won’t be hacked and scammed three times over by some lawless anonymous international criminals.
ur 2 years late. its come and gone lmao
First is pure ignorance and prejudice. People heard about crypto scams and just assume that’s all there is, and don’t investigate any further on their own.
Then there’s all the actual scams that really do exist and plague the ecosystem, and make it hard to navigate defi without getting drained, if you’re not really savvy.
For anyone getting over those two previous bumps, there remains the issue of usability. Using a dapp through metamask is still light-years away from the frictionlessness of using a centralized fintech app.
Then, even amongst those who do have the knowledge and ability to make use of defi, many people simply don’t want the tradeoffs of being their own bank. They prefer to outsource that responsibility, even when they understand the risks of trusting a custodian.
We’ll get there. Usability will improve by orders of magnitude, just as it did with the internet, and many of those hurdles will be mitigated and abstracted away. But it’s gonna take a while. For now, enjoy the information asymmetry and turn it to your financial advantage.
For starters, we don’t have any privacy in DeFi. And no, I’m not talking about circumventing the system with anonymity coins like Monero or Dash.
Why would the average Joe want everyone in the world know what tokens they are swapping and holding? Transparency in blockchain is only good to some extent.
It’s a hard problem to solve but if we can bridge over some of the enticing aspects of CeFi like undercollateralized lending through Web3 decentralized identity and KYC, which [Equifax is building with Oasis](https://oasisprotocol.org/blog/oasis-2022-a-year-in-review), then I’m sure we’ll get more traction.
Another thing I’d say that we need is the safety net. DeFi protocols don’t have a backstop for deposits if there is a bank run. This obviously isn’t as effective as we thought it was after SVB went under but psychologically it’s very reassuring.
Man, sorry to break the news to you but… DeFi is dead. It has been taken over by VCs, hedge funds and… You guessed it: banks. For an in depth take on this, just follow Chris Blec on Twitter and you’ll see how centralized are those chains other than plain old Bitcoin… CDBCs will kill all dreams of DeFi.
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Sushi just got hacked. Just too many hacks and scams going on. DeFi is hard to trust. At least, with banks, FDIC will cover your losses up to $250k. If you put your money into a DeFi protocol and it gets hacked, then you’re screwed.
It’s mainly because not everyone is willing to manage their own keys. They would rather have a central exchange do it. Look how that turned out last year with everyone except coinbase and Binance freezing their customer accounts and declare bankruptcy.
This without a doubt set crypto back at least 20 years or more.
Once people in crypto realized they need their own keys I can see mass adoption speeding up again.
Banks can give a loan without any collateral.
Again, when you’ll be able to buy a house off a mortgage you got through defi we’ll talk
Although decentralized finance (DeFi) has seen significant growth within the cryptocurrency space, it is still in its infancy in the broader financial landscape. Here are some reasons that may explain why most people still use banks instead of decentralized lending platforms:
Awareness and Familiarity: Many people might not be aware of DeFi or have limited knowledge about it. Traditional financial institutions and banks have higher visibility and trust, making people more inclined to use their services.
Interface and User Experience: While DeFi offers many innovative services, the user interface and experience can be more complex compared to traditional banks. This can be daunting for those unfamiliar with cryptocurrencies and blockchain technology.
Regulation and Compliance: DeFi currently operates in a relatively unregulated space, which may impact investor and user confidence. In contrast, banks are subject to strict regulation, making them perceived as safer and more reliable financial service providers.
Risk: The DeFi market is still relatively new and can sometimes be susceptible to issues such as hacks, smart contract vulnerabilities, etc. This causes concerns about the safety and stability of DeFi lending platforms for some people.
Asset and Currency Limitations: DeFi platforms primarily support cryptocurrencies, while many people still use fiat currencies for financial transactions. The services offered by banks can be used directly with fiat currencies, making them more appealing to many people.
Despite this, the DeFi market is constantly evolving and innovating, and we can expect decentralized financial products to become increasingly popular over time. However, education and raising public awareness about DeFi is crucial during this process.
Many decades away from this
Banks are old, like really old, DeFi was made a few years ago, to become smth serious it has to be more years old and stable
there are still constant hacks. i love the tech but wouldnt put my money into 99.9% of projects
I believe they need a bull run to show people what’s up. In this bear cycle, DeFi has been keeping people afloat. No one’s gonna go running to something that kept people above water while prices are falling.
When people are turning a 3x into a 5x cuz of DeFi, then others will FOMO in.
We need to stick together and Just Ape It in to QuadLife Token. This is the next level of Defi.
FDIC is non-existent and self-custody is quite scary when you think about having your nest egg in it rather than some portion of an investment portfolio you’re “willing to lose”
Regulators and ease of use surely are slowing down the process!
The first are moving in and making everything thougher for service provides, for now CEXes (But DeFi in general eventually will come under regulators cross-arrows!). Besides the current pain, this regulating job (if properly done) is necessary to bring the credibility and trust to the space, so the average joe can use it.
The second is very important, and while we came a long way (early users of swaps, bridges or worse: yield farmers would remember) Uniswap’s interface as a staple is more intuitive than ever, and some hybrid exchanges like Dafi are emerging bring some of the CEX’es ease of use to the DeFi space, but the road surely is long.
Time will be the battle that DeFi need to endure, because I believe the space in general is moving the right direction!
It’s not popular enough, it can be complicated sometimes, and you can lose your money quickly if you don’t play it smart. I think that ethereum, cosmos, and avalanche can be leaders of the defi scene.
The point where we can keep up with compliance and still maintain decentralization. I’ve seen the Polygon ID and the NexeraID and with the concept of Zero-Knowledge proof, we can use these IDs for compliance and then we can see Defi taking over.
Some people are not used to it until now. They are still confused and new to this kind of “stage”. But you guys should pay attention to a platform that has gret utility and with a better impact to our environment too, like Cleo.Tech. They alo help brands to get high quality leads, they leverage NFTs and Blockchain for a greener planet and many more.