Jamie Redman reports in bitcoin.com citing one of Mark Cuban's blog his fascination with decentralized finance (defi). Cuban details that many defi organizations are different because they are not corporate entities or based in the United States. He believes that “no one owns majority control” of these operations which makes them “permissionless” innovations.
“The Brilliance of Yield Farming, Liquidity Providing and Valuing Crypto Projects,” which explains the defi universe from his point of view. Cuban stressed that yield farming via staking and liquidity providing are the core features of defi and as far as the economy is concerned, he believes defi could be the “next great growth engine.”
“You need to be able to afford to hedge the risk of pricing volatility between currencies. If you want to do this business with scale, across the world, it can be very expensive and risky, but not for Defi Exchanges. What makes running a Defi exchange so much better than a traditional centralized financial business of this and any kind is that rather than the owners of the business, investors and their creditors putting up capital for all the transactions to take place, Liquidity Providers (LPs) do it for them."
"Cuban remarks as a Laissez Faire market how everything is completely automated, permissionless platform where there are no bankers, no buildings, no toasters, no vaults, no cash, no holding your money, no forms to fill out, no credit ratings involved. Everything is controlled by smart contracts. It’s fully automated. You don’t have to get approval from anyone and it takes minutes to take out a loan. This is called being Permissionless — This approach is the future of personal banking."
He concludes his blog “Unlike the early days of the internet where we fostered and supported innovation and entrepreneurs, we are already seeing our politicians shitting on the innovations crypto is fostering. Hopefully, this changes quickly or we will lose the next great growth engine that this country needs.”
An interesting read for anyone who is new to DeFi. Maybe, any Hiver who has not started to invest in DeFi will get interested and give it a try through Cub Finance after reading it and benefit from its high ROI.
Source credit and full story - https://news.bitcoin.com/billionaire-mark-cuban-commends-defi-economy-dubbing-it-next-great-growth-engine/
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Now Mark Cuban is himself asking for regulation on stablecoin after loosing in the crash of Iron finance
Right now, the crypto space is the wild west. No law, no regulations. Some argue that some kind of regulations should be in place to protect the investors from rug pulls and scams, others are against it. We have to wait and see what the powers to be want to do.
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