Bits: Passing the Fintech baton to DeFi

Jamaica’s Nickel Ashmeade passes the baton to Usain Bolt in the men’s 4 x 100-meter relay final during the 2016 Summer Olympics in Rio de Janeiro, Brazil. (AP Photo/Matt Dunham)

1. Programmability

DeFi’s programmable smart contracts allows apps to remove many intermediaries (market makers with AMMs, auditors) and automate other functions (insurance, trading orders). That reduces fees and latency.

2. Accessibility

For the first time ever, people & projects around the world can borrow and lend in the same currency at the same rate. That is incredibly powerful. Increased liquidity and access should win over time, amounting to more competitive rates on more capital than the centralized alternative.

3. Composability

Financial service integrations are often bespoke and riddled with compliance and legal hurdles. Those barriers to entry are also barriers to experimentation. While infra like Plaid, Unit, Weav and Moov are trying to make it easier to plug and play financial building blocks, founders can attest to how far we are from a couple week or couple month fintech experiment.



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Monica Desai

Monica Desai

All things fintech, consumer, crypto. Currently @kleinerperkins ex @blockchain, @harvardhbs @jpmorgan @quartethealth @segoviatech @cornell @stuyvesanthigh.