On June 13, billionaire investor and co-host of the TV series “Winners of Innovation”, Mark Cuban (Mark Cuban) explained his views on decentralized finance (defi) in an editorial published on his blog. )’S fascination. The Cuban detailed that many defi organizations are different because they are not corporate entities or are headquartered in the United States. He believes that these operations “no one has majority control”, which makes them “unlicensed” innovations.
Mark Cuban sees huge potential in unlicensed financing
Entrepreneur Mark Cuban has been in the field of encryption for some time, and a recent blog post explained that he focuses on defi innovation and decentralized exchange (dex) platforms.
Cuban wrote a review article on his blog titled: “The brilliance of income agriculture, liquidity provision, and value encryption projects”, explaining the world of defi from his perspective. Cuban emphasized that yield agriculture provided by pledges and liquidity is the core feature of defi. In terms of economy, he believes that defi may become “the next great growth engine”.
Cuban discussed his interest in certain projects such as Polygon/Matic and some dex platforms he personally used. “The examples of such exchanges I use are zapper.fi, quickswap.exhange, bancor.network, [and] uniswap,” Kuban wrote. Investors further elaborated on the benefits of these businesses by explaining how financial companies need financial depth to provide specific services.
“You need to be able to hedge against the risk of pricing fluctuations between currencies. If you want to launch this business on a large scale worldwide, it can be very expensive and risky,” Kuban’s blog post insisted. The Shark Tank co-host added:
Not applicable to Defi Exchange. The reason that makes Defi Exchange better than this and any type of traditional centralized financial business is that it is not the business owners, investors and their creditors who provide funds for all transactions, but the liquidity provider (LP) They do.
“The reward must be high because it is a truly laissez-faire market”
Cuban commented that the current exchange competition is “cruel”, and he described this economic return as a “laissez-faire market.” Investors discussed projects like Compound and Aave, and how Aave became a “fully automated, permissionless platform, no bankers, no buildings, no toaster, no vault, no cash, no holding you There is no form to fill out, and no credit rating is involved.” Cuban further emphasized:
Everything is controlled by smart contracts. It is fully automated. You don’t need anyone’s approval and you can get a loan in just a few minutes. This is called permissionless-this method is the future of personal banking.
The Shark Tank co-host recalled his Zoom speech during the pandemic and said that he believes the world has changed after what happened in 2020 and 2021. Cuba said at the time that world companies will change, and he envisioned defi and cryptocurrency companies as an important part of this global transformation. In addition, if the United States does not pay attention, the country may miss the “next great growth engine.”
“In these [transformative] Companies, it’s already certain that Defi and other encryption organizations will be at or near the top of the list,” Cuban’s blog post concluded.
“Unlike the early Internet where we nurtured and supported innovation and entrepreneurs, we have seen our politicians hype about the innovations that encryption is nurturing. Hope this situation will change quickly, otherwise we will lose the next great thing that this country needs Growth engine.”
What do you think of Mark Cuban’s prospects in encryption and defi? Please tell us your thoughts on this topic in the comments section below.
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