There was a massive leap in the TVL in DeFi over the past 20 months. However, this is a drop in the bucket compared to waht is brewing.
In this video I discuss Kevon O'Leary's statement that a trillion dollars flowing into the sector. We are going to see a lot of the fixed income money moving out of the traditioal realm.
▶️ 3Speak
The crazy thing is that if you pump $1T actual dollars into DEFI the market cap goes up $10T more or less.
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Yep.
That is not a statement that the market cap will go up by a trillion dollars. It is $1T flowing in which will send the MC flying.
As much as I dont like the Wall Street institutions, they do the resources to make things go completely insane.
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HBD, so thanks to our recent exchange of comments and information from BlockTrades we know massive accumulation of HBD is not a threat to security. However, if exceeding haircut due to dropping $HIVE price will trigger breaking the peg downwards, it creates some sort of the risk for HBD investment, doesn't it? Is my understanding of this situation correct?
We were corrected by Blocktrades and it is good to get that clarification. From a security standpoint, a massive accumulation of HBD will not pose a security threat since it is capped at the haircut level (10% presently).
A broken peg is always a threat to a stablecoin both on the high and low side. In your example, it is a threat if the price pushes down to .50 lets say. However, that is where arbitrage opportunities entire.
We have two things always in play. The algorithm that is running HBD which gets it out of human hands as well as the market dynamic which focuses upon profitable opportunities.
In this instance, we would likely see a reverse of what took place a few weeks ago where people decreased the amount of HBD, pushing the price closer to the peg.
Ultimately, it is where distribution enters the picture. If more people are holding HBD and staking it in savings, then those are likely going to provide stability since they will not engage in the market unless there are wild swings. To make things more stable, we more HBD printed overall so the volatility is reduced.
Holding peg is vital. That is why HBD stabilizer gets so much funding from the DAO. It is working hard to keep things as tight as possible.
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Nice information
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BEER.Summary:
In this video, Task discusses the growth of DeFi (Decentralized Finance) and the potential influx of funds into the DeFi space. He mentions Kevin O'Leary's statement about a potential trillion-dollar flow into DeFi and emphasizes the benefits of DeFi, such as decentralization, speed, lower costs, and better returns. Task compares the current DeFi market cap to the overall cryptocurrency market, highlighting the room for growth. He touches on the appeal of DeFi for institutional investors seeking higher yields than traditional markets offer. Task also discusses the risks associated with traditional finance and the opportunities presented by DeFi, particularly highlighting Hive and its positioning to address future regulatory challenges.
Detailed Article:
In this video, Task delves into the world of DeFi (Decentralized Finance), exploring its current standing and future potential. He starts by citing Kevin O'Leary's prediction of over a trillion dollars flowing into DeFi, indicating a significant vote of confidence in this sector. Task expresses his own belief in the explosive growth of DeFi, attributing its appeal to being a cost-effective, decentralized, and faster alternative to traditional financial systems.
Task shifts the discussion towards the market size, highlighting the disparity between the total cryptocurrency market cap, excluding NFTs, and the DeFi market cap, which he considers relatively low at just under $200 billion. He suggests that as much as 20% to 30% of the total cryptocurrency market cap could eventually move into DeFi, paving the way for substantial growth.
The speaker touches on the current challenges faced by traditional finance, particularly in generating yields, which he describes as lackluster, leading to increased risk-taking. Task contrasts this with DeFi yields, emphasizing the attractiveness of platforms like HBD with a 10% return and low risk due to blockchain-based ownership.
Task emphasizes that DeFi's advantages extend beyond high returns, pointing out the absence of third-party risks compared to other platforms like BlockFi. He highlights the growing interest from institutional investors seeking higher yields, suggesting that as infrastructure and custodial services in the crypto space improve, more significant investments from these players are on the horizon.
Further, Task addresses regulatory concerns, noting the potential threats to stablecoins and advocating for involvement in DeFi projects that remain outside the reach of regulators. He underlines the importance of preparing for the influx of funds into the crypto space and positioning oneself within the DeFi ecosystem to cater to the needs of institutional investors.
In conclusion, Task encourages viewers to engage in DeFi projects that offer solutions attractive to institutional investors while staying independent of venture capitalists. He highlights the opportunities within DeFi and the necessity to adapt to the changing financial landscape.