Don't invest in cryptoassets unless you're prepared to lose all the money you invest. Cryptoassets are high-risk investments, and you are unlikely to be protected if something goes wrong.Take 2 mins to learn more

Thanks to our supporters

brand imagebrand image
Demand-for-DeFi-stemming-from-institutional-investors-with-Delphi-Digital-0-6-screenshot.jpg
listen

Demand for DeFi stemming from institutional investors with Delphi Digital

While liquidity pools and automated market making have been taking the DeFi spotlight of late, Veta Protocol started developing its DeFi network for issuing, trading and settling derivatives contracts two years ago. With the launch of the protocol nearing, Vega Protocol Founder Barney Mannerings and…

Share

Share to Facebook
Share to Twitter
Share to Linkedin

While liquidity pools and automated market making have been taking the DeFi spotlight of late, Veta Protocol started developing its DeFi network for issuing, trading and settling derivatives contracts two years ago. With the launch of the protocol nearing, Vega Protocol Founder Barney Mannerings and Delphi Digital partner Jose Macedo spoke with Trustology’s Paul Yardley about the trends.

Vega’s Mannerings compared what his team is building compared to Ethereum, saying,

(27:32) “The thing we noticed when we started thinking about building Vega was that everything at the time, a lot of focus was on Ethereum and the Ethereum ecosystem and building on Ethereum. And I have a lot of experience in derivatives and building derivatives marketplaces but also around the risks that exist in derivatives and the complexity of those products. And what we realized was that the Ethereum platform, its total power and computation is about the same as a pocket calculator. And really it wasn’t possible to build high-quality professional standard derivatives products on the Ethereum blockchain. So really what Vega is, is an attempt to deconstruct derivatives from top to bottom, work out exactly what it is that the traders need for capital efficient profesional derivatives and then build a blockchain assisted for trading those as efficiently as possible in a way that will open up the disruption eventually of the legacy centralized derivative market.”

Delphi Digital’s Jose Macedo discussed the demand for DeFi stemming from the institutional investor space, saying,

(29:59) “Institutional clients are brought in by the pace of innovation that’s happening. And they’re interested, I think particularly what interests them is the composibilty aspect of DeFi and the permissionless innovation that it enables. So obviously each tool that’s built on DeFi is kind of an open tool that can be leveraged by anyone else that’s building and composed together with other tools to build something entirely new. And I think with DeFi right now we’re still at kind of the email phase of the internet where we’re putting things that were previously possible and putting them onto this decentralized infrastructure. Although I do think there are completely new things, like flash loans, like automated market makers which are new and different. But I think what we’ll start to see , and especially with stuff like Vega coming online that allows much greater scalability, is that composability allowing us to build things that are completely new.”

Both Mannerings and Macedo agree that delivering value is how the industry will convince more institutions to adopt DeFi as a platform. Macedo said it this way,

(39:07) “Real value is the key. Creating real value. People aren’t going to use these products because they’re decentralized, because they’re censorship resistant. I think they really have to have architectures that are fundamentally better and more efficient…There’s been a lot of obviously less interesting stuff that’s happening with yield farming…but there’s also been incredible successes that we should also highlight in terms of I can now get better execution on stablecoin trades on a decentralized exchange than I can on a centralized one.”

Gerelyn Terzo
Gerelyn Terzo
Gerelyn caught wind of bitcoin in mid-2017 and after learning about the peer-to-peer nature of Satoshi's creation has never looked back. Previously she covered institutional investing and fintech for several major trade publications. Gerelyn resides in Verona, N.J.

You may also like

Article-Thumbnail-Cesar-Cerrudo.jpg
listen

Cybersecurity in crypto: Attack on DeFi Exchanges

What exactly happened in the biggest hack in DeFi? Can it happen again? As the ecosystem grows, its market has also experienced a huge pump with a current market capitalization of over $121 billion. However, this growth has also shined a light on cybersecurity issues….

Read more
obi-nwosu-e1618557591836.jpg
read

Decentralisation – coming to a screen near you

You should never laugh at people from the past, unless you’re comfortable with future generations mocking you. But it’s still funny to think that in the early days of radio, families used to gather in front of their giant, sideboard-sized sets and stare at them…

Read more
Henry-Burrows-Featured-Image.jpg
read

Crypto-backed property purchases are on the rise among first-time buyers

Traditional businesses are partnering with blockchain intelligence firms to facilitate house purchases for a new generation of young crypto entrepreneurs. In December 2017 two properties were purchased in the UK with Bitcoin.  The purchases sparked excitement that Bitcoin-backed property transactions would become commonplace, reflecting the…

Read more
Onchain-Reaction-Featured-Image.jpg
listen

Onchain Reaction with Tom Salter – Who Has Been Driving Bitcoin’s August Price Rally?

Tom joins to review Bitcoin’s price rally, along with the aftermath of Chinas’s crackdown in July and the explaination behind the market’s current bullish picture.

Read more

Recommended

Subscribe to us

Understanding your dog for dummies cheatsheet

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.