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Bybit: DeFi Needs More Reflection & Fewer Heroes

Decentralized finance is at the heart of the financial future.

The open-source system holds the tremendous promise of an economic system for everyone, allowing everyone to access and use financial services without the control of a powerful third party.

However, DeFi is still in its infant stages and has numerous limitations.

The main source of concern is DeFi’s core nature – decentralization – which offers up a plethora of possible options for all parties involved.

However, this element is most likely missing or lacking a clear structure of focus.

DeFi is At a Crossroads

While DeFi aims towards decentralization, authority remains concentrated in the hands of a few persons in many projects at the time. In other words, the current DeFi approach is half-decentralized and half-centralized.

Igneus Terrenus, head of communications at Bybit, the world’s fastest growing cryptocurrency exchange, said development of a new DeFi trend is essential to take advantage of the potential and at the same time, overcome the shortcomings of current DeFi.

Terrenus spoke of the DeFi risks on a panel at the CryptoCompare Digital Asset Summit in London on Wednesday.

To wit,

“DeFi as it is currently set up is not at all what it promises to be. A lot of the projects are hugely dependent on the team running it.”

Aside from profit, the freedom aspect is what draws users to DeFi applications.

The ability to not rely on or be controlled by a third party. The fact that many contemporary initiatives are still managed by a small team goes against the very nature of DeFi.

This structure, he says, must be altered in order to create a financial system for all.

According to the ByBit Executive, DeFi 2.0 will comprise a collection of solutions to upgrade and overcome the constraints of the original DeFi.

DeFi enables users to access and use dApps at any time and from any location.

Terrenus stated,

“The whole narrative of DeFi 2.0 is to reinvent that, instead of relying on mercenary liquidity that is attracted by a huge APY number. As we like to say, when the APY is too good to be true, it’s because you are the APY.”

A Lot of Room to Grow

In the long term, DeFi 2.0 aims at a more complete DAO, focusing on governance and leveraging the decentralized power of the community.

There are an increasing number of decentralized autonomous groups where anybody can vote for shared development and contribute novel ideas.

Terrenus made an excellent point here: the more crypto expertise and skill sets people acquire, the more their demands for self-custody and self-determination emerge. They want to be a part of the decision-making mechanism.

The CryptoCompare Digital Asset Summit 2022, hosted by the FCA-approved CryptoCompare, is a landmark conference that brings together world-class corporate speakers and leaders from the institutional, retail, regulatory, and technology industries.

The discussion will center on current issues and advancements in blockchain, cryptocurrencies, and finance.

This year saw numerous global financial elites discuss the potential of cryptocurrency as a source of liquidity for a variety of applications.

These ideas include international remittance and as a diversification tool for regular people to maintain the value of their investments in uncertain economic environments.

Bybit is one of the most well-known cryptocurrency derivatives exchanges presently.

When it comes to providing BTC trading with leverage of up to 100 times, the exchange is a direct competitor to the BitMEX electronic exchange.

Bybit Exchange was founded in March 2018 and is registered in the British Virgin Islands. Its headquarters are in Singapore (BVI). They have representative offices in Hong Kong and Taiwan in addition to their headquarters in Singapore.

North America, Europe, Russia, Japan, Korea, and Southeast Asia are the markets it is concentrating on.

The Summit’s panel “Solid Facts, Liquid Truth: Building High Liquidity Digital Asset Markets” featured speakers from AAVE, CoinShares, Ripple, Global Digital Finance, Coinbase, FalconX and Bybit, among other prominent names.

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