I don’t disagree we have a way to go. That said, there is a way to enable things like trust and underwriting on the chain. I know @DharmaProtocol is attempting it. Fwiw, my tweet wasn’t anti-bank. I actually think banks will embrace the tech some.

Didn't think it was anti-bank. I agree DeFi is gonna innovate some interesting things, was just making a comment on collateralization issues.

The reason, years ago, that I settled on permissioned chains as a financial industry solution is that DeFi can't compete with OldFi in cost of capital terms, but it utterly destroys OldFi in verifiability terms (thanks crypto!).

Or MarFi.

What if the model for profiting were different such that the cost of collateralizing a MoE like a dollar coin is made up for through other, new, business models and new kinds of financial products? This doesn’t seem too far fetched from what we’ve seen even in the short history

Financial product innovation usually leads to more problems than solutions. The CDO and derivatives markets were sold as ending boom and bust. The only problem was they weren't transparent. They are capital efficient though.

I don’t claim to know what new DeFi products may exist in 10 yrs. it just seems wrong to write off the whole space because of drawbacks with the very first batch of products. The space doesn’t end with DAI. The internet didn’t make slow static web pages and call it a day

again, these are not "loans" i feel like the DAI crowd needs to read up on the basics of maturity transformation

This is good insight but devil in details. What verifiability surface has to be exposed by a permissioned chain to distinguish it from a plain old DB? Ability to run an external read-only peer? Or chain has to be a third party hosted service? Or...?

MarFi 😂

MotFi