DeFi

“Twenty-twenty saw two new groups from our standpoint. One was the emergence of the Ethereum-only or Ethereum-first investor, which was just really interesting. I think kind of going alongside the proliferation and interest that we've It's seen in DeFi or decen…”

“July of last year, four and a half billion or so of trading volumes. That was more than all of 2019 combined. Fast forward to January of this year, sixty billion of trading volume.”

“Immense amount of activity in DeFi going from under seven hundred million of collateral locked in the system at the beginning of 2020 To around forty billion today.”

“We have made a couple of small commitments to some venture-oriented crypto players really viewing that as Something that could be significant, particularly in around DeFi and some of the things that we've seen where a lot of that business activity is happening…”

“We have done a decent amount of investing, including venture investing in blockchain and DeFi.”

“All the DeFi protocols about all the financial services have been created for DeFi protocols are primarily to support the trading of other cryptocurrencies that also have no social utility.”

“Take Uniswap as a governance token, the Uni token, or other types of DeFi tokens. Effectively, they give governance rights on a platform that performs a service to the holders of it. And either today or in the future, they can give also economic power to these…”

“Secured lending is a category within DeFi that is actually probably the most mature in terms of finding product market fit and having real volumes run through these systems, and very low If any principle defaults on the blue chip platforms”

“So really DeFi scaling is, in my mind, a D to B to C distribution model, DAO to business To consumer. You need that kind of layer in between.”

“Uniswap, for example, just passed one trillion dollars of trading volume since inception. It launched a few years ago.”

“So one, you have instant settlement when you're using DeFi. So it's not T plus two settlements for equities or T plus 20 for bank loans. These are all bearer instruments. So there's no global working capital drag from all the unsettled trades in the world. It …”

“And the largest consumers of DeFi will be banks, will be fintech companies, and will be institutions.”

“And my hope is that, and my sense is that people won't even use the term DeFi in five to 10 years. It will just be called finance because we don't call finance today centralized finance.”

“When you really dig into these stated returns in yield farms, one, there isn't always the right disclosure around the risks that you're taking, but also a lot of time the return is coming in the form of a token that may not have liquidity, and there may be loc…”

“So for all those reasons, I still think permission DeFi is incredibly interesting, incredibly powerful, and probably will be Orders of magnitude larger than the DeFi that we know today.”

“There's really no limit on the number of times a token can get rehypothecated in DeFi or on these digital networks.”

“And I think if you think about that category today, it's grown quite a bit, but it still has, I would say, limited product market fit.”

“I really do view it as where every financial transaction in the world will take place.”

“If we can couple offline collateral and assets with DeFi, it's at least a 10 X, probably closer to a hundred X unlock from where DeFi is today.”

“I think a lot of DeFi has kind of been these like Ponzi games where, you know, you have these really high yields and this tends to be kind of what gets press attention.”

“DeFi worked. DeFi didn't fail here. Maker is still going. Frax is still going. Ethereum is producing blocks. You can send money around using stable coins. You can still take money out of Aave. All the systems that are designed to be over collateralized and res…”