Thread by @mayazi

DeFi truism:
1. DeFi is a rerun of the 2008 asset backed finance bubble on speed. Predictable with self-gobbling mechanisms multiplying systematic risk via leverage in the system & composability
2. The bubble will be bigger than 17’, due to leverage & shorts
3. People will scam

4. Eventually the Cambrian explosion will implode on bag holders, but the winners have a leg up in regulated markets. Their DeFi financialization protocols will be battle tested in a way no sandbox can match
5. Security tokens will win demand from tegaukted DeFi before enterprise

*regulated DeFi before enterprise security token gain any significant market cap. No matter which consortia is behind it
6. Some DeFi projects will immigrate to CBDC networks it’s corporate chains, after they’ve gained enough capital

7. The low interest rate & geopolitical uncertainty means Wall Street sharks are playing in the relatively small pond of DeFi foodies. Be careful!
They’re the people that know how to hedge for the eventual implosion

They’ll be looking to see when the risk profile in the system changes & it’s time to stock up on all those CDS/synthetic shorts.
8. The real question is which product is the most trust worthy instrument for the implosion

9. The crypto community has been looking at unsecured lending as a goal, yet hasn’t fully integrated a robust identity system for credit assessments or credentials.
10. Exchanges otoh use a porous identity sharing system cuz they actually need to share compliance data