Introduction
In this tutorial, we will explore the transition from DeFi (Decentralized Finance) to ReFi (Regenerative Finance). We will delve into the insights provided by industry experts in a panel discussion, focusing on their respective projects and the exciting future of DeFi. The panelists include Donna, the CEO and founder of Aave; Marik, a co-founder of Celo; Julian Butler, involved in various projects such as Curve Finance and Stake DAO; and Pablo Virat, a co-founder of the Engel Protocol.
Panel Introductions
The panelists introduce themselves and provide an overview of their projects. Donna highlights Aave, a full-stack Web3 company that builds decentralized protocols and applications. Aave’s Ova protocol enables users to supply cryptographic assets, earn interest, and borrow other assets from the protocol. They have also developed the Lens protocol, a decentralized social graph that allows users to create on-chain profiles and follow others.
Marik discusses Celo, a mobile-first EVM-compatible blockchain. Although not directly involved in DeFi, Celo supports exciting developments in DeFi and ReFi. Julian Butler introduces Curve Finance, an auto market-making protocol for stablecoins, and shares his involvement with Stake DAO, a governance-focused project. He also mentions State Capital, a family office specializing in DeFi investments, and Blackpool, an investment firm in the NFT market.
Pablo Virat presents the Engel Protocol, a decentralized stablecoin protocol. They have launched AG Euro, one of the largest euro stablecoins in the decentralized space. With these introductions, the panelists set the stage for discussing the most exciting aspects of DeFi and the future of DeFi for their respective projects.
The Excitement of DeFi and Open Finance
The panelists share their thoughts on what excites them the most about DeFi and the broader concept of open finance. Julian expresses his enthusiasm for the replication of traditional financial products in a decentralized manner. He believes DeFi offers an opportunity to think outside the box and create innovative products that were previously unachievable due to limitations in traditional finance.
Donna emphasizes the potential of open finance, considering DeFi as a subset. She believes the real value lies in completely reinventing the financial system in a composable, transparent manner. Marik shares his agreement, emphasizing the ability to tokenize real-world finance products and create new use cases, such as improving the forex market.
Pablo adds to the discussion by highlighting the potential of stablecoins in combating inflation and bringing financial accessibility to regions with currency volatility. He cites the adoption of stablecoins in countries like Argentina, where on-chain transfers and proof of future income can revolutionize financial systems. The panelists collectively express their excitement for the transformative power of DeFi and open finance.
Building Sustainable and Regenerative Finance
The panelists discuss the importance of building protocols and projects that contribute to sustainability and regenerative finance. They mention the potential of DeFi to tackle climate change, explore protocol-controlled value, and tokenize assets like carbon offset credits and trees. They also mention the need for composability, where protocols can build on top of each other to create a more efficient and interconnected financial system.
The discussion extends to the role of transparency and public blockchains in addressing inefficiencies and ensuring trust in markets like carbon offset credits. They emphasize the need for balanced governance and long-term decision-making in DeFi protocols. The panelists also acknowledge the importance of collaboration and positive-sum games within the DeFi community to drive innovation and tackle societal challenges.
Conclusion and Future Developments
In the concluding remarks, the panelists express their optimism for the future of DeFi and ReFi. They highlight the need for continued collaboration, experimentation, and iteration to drive.