Our core contributor @jaskanwar_singh recently shared insightful dialogue with @GenfinityIO , emphasizing the pivotal role of a
26 Aug 2023, 18:05
Our core contributor @jaskanwar_singh recently shared insightful dialogue with @GenfinityIO , emphasizing the pivotal role of a security layer for the widespread acceptance of #DeFi to emerge.
In an in-depth conversation 💬, he elucidated the significance of insurance 🛡️ in introducing the staggering $1 Trillion of on-chain capital into the DeFi arena.
Imperatively, high APRs alone won't suffice to position DeFi into mainstream adaptation. Drawing from the historical narrative, even attempts by the U.S. government to lure idle retail money back to the banks post-1930s crisis by hiking APRs, proved inadequate.
So, how was trust restored in the banking system, leading to retail reinvestment? The answer lies in the establishment of the FDIC, providing crucial insurance 🛡️ and essentially a safety net for bank depositors. The insertion of this safety net addressed the pressing issue facing the U.S. economy 📊.
Correspondingly, DeFi's current situation demands a similar remedy. To propel the Total Value Locked (TVL) 🔒 in DeFi protocols and potentially surpass $1 Trillion, we necessitate a native system ensuring end-user protection 🛡️. a.k.a - decentralized insurance.
Restoring trust within the ecosystem is imperative for DeFi to claim its deserved place in the finance world.
This scenario presents a golden opportunity for DeFi insurance providers to convert endless threats ⚠️ besieging the DeFi space into promising potential 📈.
All these and more has been covered by @jaskanwar_singh , and we suggest everyone to put a close ear to the insights he has shared.