Thread by @sanchans

1/ I had a great time hosting the 2nd session of #BUIDLCrypto - with the builders of crypto economy - hosted by @coinbase . Over 1,900+ people tuned in to listen to our session on DeFi for Institutions (coinbase.com/buidlcrypto)

Listing some key messages from builders below 👇

2/ “DeFi is pretty much like finance in one way, it’s becoming hard to separate what is finance and what is decentralized finance. Many of the enthusiasts in crypto come from traditional finance, not just developer backgrounds” @StaniKulechov , Founder of @AaveAave

3/ “DeFi started off entirely retail. Then crypto-native funds, and now it’s starting to look and feel like there are..large US and international banks, large hedge funds, a whole new cast of characters that are interested in interacting with DeFi.” @rleshner of @compoundfinance

4/ "Aave Arc builds permissioned markets, so it’s kind of like a sandbox environment for institutions to experience DeFi, but it’s a scalable protocol offering" @StaniKulechov of @AaveAave

5/ "People at funds are starting to think there is an opportunity - this technology is transparent and open, it seems like anyone can participate, there is constant building by developers, new things coming in, there is constant arbitrage...

...everything is so transparent that you can see all of these transactions, that it feels like such good economical structure to participate in.” @StaniKulechov of @AaveAave

6/“Liquidity, which is essential in finance, is mostly driven by large Institu.What we’re doing here is showcasing that this technology is scalable, transparent, everything is auditable, programmable, easy to participate, and the rules are the same for all funds” @StaniKulechov

7/“I believe that this software infrastructure is very good for institutions, and over time, as the security aspects prove that these protocols are resilient and that the community is managing risk well, it starts to scale more towards larger institutions” @StaniKulechov

8/"The pace at which institutions become curious in DeFi is often measured in weeks or months, not years, and therefore the wave of activity that we have seen grow from 2020 to 2021 has been pretty staggering” @GregTusar

9/ “Of Coinbase’s large institutional clients, ~75% own more than just BTC. Of them, 80% own ETH. Of those, ~50% own other assets. It’s really fun to see a very quick migration from..liquid BTC and ETH, and a heck of a lot of curiosity to branch out from there” @BTejpaul

10/ “Compound Treasury is live today and currently operating in 4 US states today. We have customers signing up every day and every week. Customers range from FinTechs, NeoBanks to wealth management businesses, to large banks” @rleshner

11/“DeFi barely existed a year ago and was only created 3 years ago, so I think in one year, DeFi is going to grow a lot and change a lot. The minds of institutions have started to open a lot...

...Institutions will coalesce around protocols that have been around the longest and that have been working safely and securely for the longest period of time.” @rleshner

12/ “I see massive curiosity. We are at a point where there is a lot of education that is happening amongst institutions. And education precedes adoption in a lot of cases. I think it’s an extremely optimistic sign that there is a lot of education occurrence” @rleshner

13/ “At Coinbase, we want to be the easiest to use UI layer to DeFI, and we want to make it easy for people to participate in DeFi (aka backend protocols)”. @sanchans

14/ “Contrasting the two, you have one approach (Aave Arc) where you can actually go all the way to the deep end of DeF, experiment and try it out. Or the other approach (Compound Treasury) is where we abstract every complexity of the protocol from you and...

...you just worry about the dollars you have and the interest you are earning. It is really good experimentation that our industry is doing and we will see how we evolve from this point forward, with @rleshner & @StaniKulechov at the helm” @sanchans

15/ Catch us again next week on yet another episode of BUIDL Crypto (coinbase.com/buidlcrypto). We will be talking about “How Crypto is Fostering Economic Freedom Globally” with our next set of guests.

#crypto #coinbase #buidlcrypto