Sidney Powell , co-founder of Maple Finance (MPL) an Australian-based under-collateralised lending project for crypto-native institutions.
On decentralised finance (DeFi):
“We’re about to see a big boom of institutional credit flows into the digital economy. DeFi will hit the mainstream in 2022, knowledge will compound, institutional sentiment will continue shifting in favour of crypto, and the strengths of DeFi and TradFi will converge.
“This convergence will mean faster, capital-efficient and compliant services that build both the digital and real-world economies. Maple’s first KYC-AML (Know Your Customer/Anti-Money Laundering) permission pool with BlockTower and Genesis is a great example of how we’ve converged DeFi and TradFi to enable regulated entities to participate in on-chain under-collateralised lending.”
On DAOs (decentralised autonomous organisations):
“Institutions won’t be the only benefactors in 2022. Crypto-native DAOs will ramp up investments in order to diversify treasuries and reward their communities. Capital from family offices, asset managers and VC funds will continue to flow and grow, too.
“Everyone wants a piece of the DeFi pie and there’s enough of the pie to go around.” Maple Finance co-founder Sidney Powell Yenwen Feng , co-founder of Perpetual Protocol (PERP) – a decentralised derivatives platform.
On Ethereum 2.0:
“We believe that once Ethereum transitions to PoS [Proof of Stake] , the drop in transaction fees on L1 will solidify Ethereum’s position as the go-to place for using DeFi applications. What’s more, the consensus-mechanism change might unlock more types of money as the environmental concern won’t be valid any more.”
On layer 2 scaling protocols:
“In 2021, we started to see some usage of L2. However, the cost of transactions is still higher than sidechains and the ecosystem around them is still primitive. In 2022, we believe the L2 deposit/withdrawal support from CEXs [centralised exchanges] and the existence of bridge protocols will make the UX on L2 much better.
“Additionally, as Arbitrum introduces its ‘Nitro’ upgrade and StarkNet launches, we should be able to see the dramatic drop in fees on L2.” Yenwen Feng, co-founder of Perpetual Protocol ‘We’ll see the first multichain applications’
Will Harborne , CEO and co-founder of decentralised crypto exchange DeversiFi .
On interoperability and the evolution of multichain crypto:
“In 2022, we’ll see the first multichain applications, which use multiple Layer 1s as part of their core protocol by default. With more new chains entering the space, we will see an ecosystem of multiple blockchains working together.
“To give us an idea of this we can look to Cosmos and Polkadot, which are both multichain ecosystems. Both use similar models that involve a so-called core ‘hub’, with specific blockchains built on the protocol that then connect to the hub.
“The advantage of this is that interoperability between these chains is at a protocol level, and each chain can be optimised for specific use cases but still share the same security.”
On layer 2 protocols: “We’ve seen the popularity of Layer 1 chains and sidechains skyrocket this year, in a bid to combat Ethereum’s high fees and slow scaling solutions. But 2022 will be the year we’ll see Layer 2 Ethereum reach critical mass adoption, and surpass Layer 1 in both TVL [total value locked] and volume.” Will Harborne, CEO and co-founder of DeversiFi ‘DeFi is maturing’ George Harrap , co-founder of Step Finance (STEP) – “the front page of Solana”: On DeFi’s evolution: “DeFi is going to go through a learning period where you can’t just rely on emissions, paying coins, and then hoping that people will stick around any more. There’s a lot of mercenary capital, and it’s not good.“We are seeing the rise of things like OHM and Step Finance’s call options, making emissions a lot more productive and increasing the stickiness of people coming to platforms. It’s no longer just a farm and done. DeFi is maturing, and the retention mechanisms for all of these platforms in keeping these users are going to change.” ‘Ethereum won’t get solved next year… not even close’ On multichain cryptos: “We already see multichain growing, and I think it will continue to grow. We know there’s a lot of Ethereum Layer 1s… but Ethereum won’t get solved next year… not even close.“So there is just going to be a proliferation of more Layer 2s and Layer 1s. It’s just going to be expanding the pies, which is a good thing for everyone.” On DAOs: “DAOs are going to continue to be a way to orchestrate people towards one goal, and that’s a good thing. There’s just going […]
source Crypto 2022: ‘DeFi will hit the mainstream’ – 9 top projects predict the near future
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