What's New in DeFi on Celo Blockchain

Introduction

The transcript is from a panel discussion on the topic of “What’s New in DeFi on Celo.” The panelists discuss various aspects of DeFi (decentralized finance) on the Celo blockchain, including the current state, future prospects, and building blocks for the platform’s development. The panelists introduce themselves, highlighting their roles and projects related to DeFi and Celo.

Panelist Introductions

The panel discussion is moderated by Jason, who leads the founder programs at the Celo Foundation. The panelists include Andy Singleton, who is working on a Celo savings project called “Sello Savings” that offers a boosted yield product based on Terra’s Anchor. Denali is introduced as the lead blockchain engineer at Cresco, a platform focused on bringing crypto-backed synthetic assets to developing countries. Henry is the founder of Nested, a decentralized social trading platform that tokenizes portfolios as NFTs. Lastly, Manuel is working on a project called “The Double of Tokens,” aiming to create liquidity for tokens and facilitate collaboration between capital providers and token holders.

Retention and User Experience in DeFi

The panelists discuss the importance of user retention in DeFi protocols. They emphasize the need for a user-friendly experience, emphasizing mobile compatibility and seamless on-ramp and off-ramp solutions. They also mention the significance of a self-custodial wallet with a familiar authentication process, addressing concerns about complex seed phrases. The panelists agree that short-term incentives like token rewards can attract early users, but long-term retention relies on the quality and simplicity of the product itself.

Institutional Capital and Building Communities

The discussion shifts towards the role of institutional capital in DeFi and strategies for building dedicated user communities. The panelists express different perspectives on the sustainability of institutional capital, with one panelist suggesting that farming rewards will diminish over time. They discuss the importance of reducing risks and attracting capital by providing positive returns in a low-risk environment. Regarding community building, the panelists advise starting with what one knows best and engaging closely with the community through platforms like Discord and Telegram.

Future of DeFi on Celo

The panelists share their thoughts on the future of DeFi on the Celo blockchain. They highlight the importance of composable protocols and seamless user interfaces. They acknowledge the need for increased liquidity on Celo and mention the “DeFi for the People” initiative as a way to attract liquidity and foster competition among Layer 1 blockchains. They also emphasize the potential for growth and the significance of negative capital in a growth environment.

Conclusion

The panel discussion concludes with gratitude for the participants and an invitation to continue the conversation. The panelists emphasize the importance of ongoing dialogue and connection with the speakers outside the discussion.

Overall, the panel discussion provides insights into the current state, challenges, and future prospects of DeFi on the Celo blockchain. The panelists highlight the importance of user experience, community building, liquidity, and sustainable growth in building successful DeFi projects on Celo.