Compound Finance Founder Robert Leshner Says CeFi To Embrace DeFi
Compound Finance Founder Robert Leshner Says CeFi To Embrace DeFi
December 17, 2020
Compound Finance Founder Robert Leshner Says CeFi To Embrace DeFi
Compound Finance Founder Robert Leshner Says CeFi To Embrace DeFi
December 17, 2020

Robert Leshner, the founder of Compound Finance, said that CeFi will embrace DeFi and there are signs it is already occurring.

It has been reported that Leshner aired his views on CeFi/DeFi integration in Global DeFi and Blockchain Virtual Summit in Bangkok, Thailand, the issues with Ethereum, and the advantages of decentralized governance. 

However, host Mukaya Panich, the chief venture and investment officer of event sponsors SCB 10X (linked to Siam Commercial Bank), asked Leshner about DeFi’s integration with traditional and centralized finance.

He commented that lines will blur and centralized finance and businesses will start to use DeFi to power the back end in order to improve user experiences.

He added:

“I’m really excited about seeing CeFi systems embracing DeFi back end operations.”

The report said that Leshner warned Ethereum, the network upon which most DeFi projects are built, may no longer be up to the task. He also said that Ethereum had high composability but was slow and expensive to use, and reaching its limitations.

ALSO READ :  AirAsia Launches Blockchain-Based Cargo Booking System Called Freightchain

He further stated that an unfortunate consequence of this would be that it is no longer economically viable to use for smaller transactions and users.

Leshner added:

“The more transactions, the more it will crowd out small balances.”

Likewise, he said that it meant no single entity can maliciously ruin the protocol and anybody can contribute to the collective upgrading of a protocol.

On the downside, he said this leads to slower governance decisions and modifications and the protocol may only slowly evolve over time. Comparing it to Bitcoin, which he said was predictable and slow to evolve.

He added:

“Bitcoin is so successful because it doesn’t change much — everyone knows what to expect from it.”

Moreover, Leshner revealed plans to add more “real world” tokens to the Compound platform. The current criteria for inclusion are that the asset needs to be an Ethereum-based fungible asset with a certain amount of liquidity.

ALSO READ :  Nuvei Adopts Payment Support For 40 Cryptocurrencies

Thus, he stated that more will be added as they become tokenized:

“Over time more real world assets [will be added] as they become mainstream on the Ethereum blockchain.”

Source: Cointelegraph


Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with experience of 1.5 years. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.