Speaking at a conference on DeFi, Compound Finance founder Robert Leshner says that CeFi will eventually adopt DeFi.
Compound Finance founder Robert Leshner says CeFi will inevitably adopt DeFi, and there are signs that this is already happening.
In his speech at the REDeFiNE TOMORROW: Global DeFi and Blockchain Virtual Summit, held today in Bangkok (Thailand), Leshner presented his views on CeFi/DeFi integration, the problems with Ethereum and the advantages of decentralized governance.
Organizer Mukaya Panich, head of entrepreneurship and investment at SCB 10X (linked to Siam Commercial Bank), the event’s sponsor, asked Leshner about DeFi’s integration with traditional and centralized financing.
He commented that the boundaries will be blurred and centralized finance and companies will start using DeFi to leverage the back end to improve user experiences:
„I am very excited to see that CeFi systems encompass DeFi’s back end operations,“
But Leshner warned that the Ethereum, the network on which most DeFi projects are built, may no longer be up to the task. Leshner said that Crypto Genius had high composability but was slow and expensive to use, and was reaching its limitations. An unfortunate consequence of this, he said, would be that it is no longer economically viable to use for smaller transactions and users.
„The more transactions there are, the more it will displace small balances,“
When asked about the advantages and disadvantages of a decentralized management such as the one carried out by Compound, the accredited financial analyst cited two clear advantages. He said it meant that no individual entity could maliciously ruin the protocol and that anyone could contribute to the collective improvement of a protocol.
But on the negative side he said that this leads to slower governance decisions and modifications and that the protocol can only evolve slowly over time. Comparing it to Bitcoin, which he said was predictable and slow to evolve, Leshner added that
„Bitcoin is so successful because it doesn’t change much, everyone knows what to expect.
Leshner revealed plans to add more „real world“ tokens to the Compound platform. The current criterion for inclusion is that the asset must be an Ethereum-based fungible asset with a certain amount of liquidity. He stated that more will be added as the tokens become available:
Over time, more real-world assets will be added as they are added to the Ethereum blockchain.
When asked about the recent Dai settlement event, which caused several users to lose funds due to incorrect Dai pricing information on November 26, Leshner said that Compound relies on Coinbase Pro as a „safety trigger“ and the system worked exactly as planned. He added that one solution would be to build systems more resistant to these extreme events.