Decentralized finance has entered a new era as digital currencies increasingly become an internationally accepted product. Neo co-founder, Da Hongfei, and Nash co-founder and chief business officer, Fabio Canesin, recently joined the Beyond the Chain podcast to discuss the current wave of DeFi and how they’re navigating its waters.
Da calls DeFi’s current iteration version 2.0, a step up from its predecessor’s primary building blocks. New protocols and mechanisms are incentivizing token holders to stake assets and provide liquidity to pools. From his perspective, DeFi 2.0’s main characteristics include the shift from peer-to-peer to peer-to-pool liquidity, the reuse of liquidity through synthetic assets, and token incentives for actions that boost adoption.
Canesin agreed and noted DeFi isn’t anything technically new, but is building upon a previous foundation of functionality. He expanded upon DeFi’s renaissance:
We’re looking at what can be built now with the primitives we already have. We’re at a point where we can say we already have decentralized finance toolsets in our garage. What else can be built on top of that? It’s much more about composing this new instrument than actually going back to the decentralized network’s fundamentals. New DeFi is about more complex instruments. Borrowing, lending, tokenization of interest.
In DeFi’s second era, Nash and Neo have set their trajectory and begun moving forward. Nash aims to be a foundational, regulatory compliant company with many products for individuals and businesses. Canesin noted:
The Nash value proposition is to be this stable place. There needs to be a place where you hold your assets, where they go to sleep. When you go to bed, you’re happy [those assets] are there. Nash wants to be this place. We want to be compliant, not because we like compliance, but because it allows us to be this company that will allow you to trust us for many years and have a way to go from fiat-to-crypto and crypto-to-fiat.
Whereas Neo is continuing to build out the Flamingo Finance platform, which Da called the “core function of [Neo’s] whole DeFi ecosystem.” Currently, Flamingo offers tools for wrapping, swapping, and staking. Additionally, the suite includes Flamincome, a yield boosting component implemented as a series of contracts on Ethereum. Looking forward, the team is working on releasing the Perp module, an automated market maker-based perpetual contract exchange.
Beyond the DeFi space, Da believes there is more opportunity blockchain has to offer. He said,
Digital currencies are becoming a little more mainstream. [People are] using stablecoins as an instrument of payment to do international business and trading. In China, we’re going cashless. Everyone is going digital. I believe the future is really promising.
The full interview can be found at the link below: