The 21th edition of our curated newsletter.
In today’s newsletter we look at:
Bridging Non-Crypto and DeFi
Announcing Compound Treasury, for Businesses & Institutions
Compound, a decentralized protocol for lending and borrowing crypto, is introducing Compound Treasury. The ultimate goal of the Treasury is to bridge traditional institutions as well as non-crypto businesses and DeFi, allowing the former ones to use all the key benefits of the blockchain-based decentralized applications.
Together with Fireblocks and Circle, Compound Treasury has designed a product and flow-of-funds that enables Neobanks, Fintech projects, and other interested parties to use the interest rates available in the USDC market of the Compound protocol in the most user-friendly way possible.
DAO First Capital Formation
Kain Warwick, the founder of Synthetix, has published a piece on capital formation in the DeFi space. Right now, if you ask several DeFi investors about the best mechanism for raising capital for a protocol, you will get several distinct points of view. DAO, in turn, can act as a unifying alternative.
Since DAOs are becoming more common and capture investors’ interest, they can become a powerful tool for raising and deploying capital. Eventually, a DAO should coordinate rather than control and transform community preferences into tangible outcomes. The article explores a few critical aspects of DAO formations that DeFi projects should consider.
The DeFi Hype: Why It Matters
How DeFi is Eating Financial Services
Despite an insane growth in the value of digital assets locked in protocols, the applications and the entire DeFi infrastructure are still in the very early stage of development. Public awareness on the subject of decentralized finance is also not on point, so if you’re looking for a good article that summarized all the key issues, take a look at this piece.
A straightforward guide explains all things DeFi, including the differences from traditional finance, ecosystem overview, potential use cases, yield seeking, trading opportunities, investment prospects, and possible risks.
Aave, Fireblocks, and Galaxy Explore Next Steps Toward Permissioned DeFi
Aave’s founder Stani Kulechov suggests we need to put together a system of whitelisted and blacklisted wallet addresses to conduct automatic anonymous lending safely. Lowering risks is an essential measure that has to be taken before banks and financial institutions can get involved.
Although permissionless DeFi will probably always exist, there will also be “layered and tailored” DeFi made up of private pools and whitelisted markets. Fireblocks and Galaxy supported the initiative and offered their assistance in exploring how such markets can be deployed.
A Guide to Understanding ETH as an Investment
Is ETH a consumable commodity, capital asset, or programmable collateral/money? In her in-depth research, Celia Wan explores the Ethereum network from the investor’s point of view.
She shares an economic analysis of ETH, describes the network’s recent developments, explains how Ethereum and DeFi can disrupt legacy finance, and looks into Ethereum as capital and monetary asset. If you like to plan your investments wisely, this material will help you assess the prospects.
This is a weekly newsletter curated by our Blockchain Lead Vyacheslav Akhmetov. We cover the most sparkling events in the industry and sharing more about our journey.