Cao Yin: The third financial revolution DeFi

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DeFi is a concept emerging in the overseas blockchain community, which aims to improve or even reconstruct the traditional financial system in a disintermediary, transparent, open and inclusive way. 2019 is the year that DeFi has grown by leaps and bounds. According to DeFiPulse data, the amount of assets locked in the DeFi ecosystem once exceeded US$1 billion in early January 2020, and this figure was almost zero more than a year ago.

The pioneers of DeFi have carried out beneficial explorations in multiple directions such as stable currency, synthetic assets, money market, chain insurance, DEx, etc. Traditional institutional capital such as A16Z and Drapper Capital are appearing frequently, and DeFi has become a blockchain world. It is also highly likely to be one of the original and most important directions in the future of the blockchain world.

It is worth noting that although DeFi has no shortage of grand visions, fascinating narratives, and dazzling data, whether it is the massive liquidation or even "near bankruptcy" of many DeFi protocol products on March 12, or the 25 million US dollars unfortunately suffered by Lendf me not long ago The incident of theft of funds (as of the publication, all relevant assets have been recovered and arranged to return), all show that DeFi is still in a very early stage, and all practitioners, investors, media and critics need to be more cautious. To examine DeFi with an attitude and evaluate its future.

By, OmniLAB and Zhongcai Blockchain Research Institute invited Cao Yin, Managing Director of the Digital Renaissance Foundation, to be a guest at the "Omni-Zhongcai Digital Economy Forum" on April 24, that is, last Friday night, and shared with you Insights on DeFi: Re-understand DeFi from the bottom, gain insight into its emergence background, compare and analyze it with traditional finance, where DeFi can go in the future, and what structural opportunities exist in the middle.

The following is Cao Yin’s shared text record, OmniLAB editors have adjusted it without changing the original meaning, Enjoy~

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The background of DeFi: the arrival of the third financial revolution

Before we start, let me tell you a more interesting case, which is a case in the first section. Everyone should have played a bet, we call it a bet. For example, the picture I show you here is actually a betting page. Can humans land on Mars in 2030?

This is actually a very long bet, and there are still 10 years left. So I won't be able to reveal the bet until 10 years later. Generally speaking, it is impossible for you to make such a bet, why? It is difficult for you to ensure that you and your counterparty can be trusted within 10 years. Because our current bets generally have a relatively short timeliness.

But there are several risks in this:

Will the banker really give you the money, will he? We call it third party intermediary risk.

Second, if the dealer collects a lot of money, will he try to manipulate the bet.

And the bet shown to you here does not have this problem, because it has no third party and no intermediary. You and any direct counterparty can set up such a bet on the blockchain. So this is actually similar to a decentralized bet without a dealer.

In fact, this project is called Augur, and it is actually a very interesting case in DeFi. However, it belongs to the kind of tools that are more game-oriented rather than financial-oriented. There will be more tools in the future, but the characteristics of these tools are the same, that is, disintermediation. These important intermediaries, such as banks, brokerages, and bookmakers in this kind of bet, are removed, and then Party A, Party B, seller, buyer, short seller, and long seller are directly on the blockchain to decentralize and go Intermediary and trustless ways to complete transactions, issue assets and a series of related financial work that we see every day, this is called DeFi, Decentralized finance, decentralized finance. Why is its status so high, because it is the third financial revolution.

The financial industry has gone too long without a decent revolution or reform. Internet finance can be regarded as a reform, but it is still essentially a supplement to existing financial tools. The current Internet finance, such as Alipay, is only a channel. In the year before last, Alipay’s clearing and settlement authority was taken back to the central bank and the Ministry of Finance. Now Alipay is actually a third-party collection tool, and it cannot be called a third-party payment at all, because the most important clearing and settlement has been taken away. Take it back to the bank.

So when it comes to the Internet, our Internet has been around for more than 30 years, and it has been more than 40 years. In fact, it has subverted many industries, and the most typical one is the information industry. As you can see in this picture, it is called Gutenberg’s printing press, right? Gutenberg's printing press. Gutenberg's printing press actually changed the path of human knowledge transmission. After the Internet comes out, through Internet tools such as Facebook repeat YouTube, the path of information and knowledge dissemination is decentralized.

But finance is not the same as the banking and financial institutions that came out around the same time as the Gutenberg printing press. For example, the Bank of England, the earliest formalized central bank in the world, still works in the same way as it did at that time, and it is still the same now. Works the same way, then enters like a bank. For example, banks like Gongnong China Construction and brokerages are intermediaries. In fact, they still work in the same way as before, which is no different from 100 years ago or even 200 or 300 years ago.

The internet hasn't changed the financial industry much. Yeah, I know.

Then you can see what is the first financial revolution? We call it the emergence of commercial banks and the Canadian central bank system. In fact, it started from the time of the Bank of England, and then the basic assets were precious metals, which we called the endorsement assets, and then the central bank and the commercial banking system. To issue bank notes, which we call banknotes, which are backed by precious metals, and then the clearing and settlement institutions for transactions are various clearing houses, for example, there was the London Note Exchange at that time, or the New York Note Exchange So, it appeared very early, around the same time as the Bank of England.

The background is that because of the great discovery of geography and the revolution of navigation technology, there have been transnational and large-scale trades from Western Europe and the Mediterranean region, China, Asia or Southeast Asia, including countries such as India and the United States. Trading, it forms a large-scale circulation of these precious metals, but precious metals are inconvenient to hold, heavy and easy to be stolen.

Therefore, we use the form of bills to provide endorsement for these bills with the credit of commercial banks. At the same time, the central bank, especially the regular banks like the Bank of England, is providing a backstop for commercial banks, and then commercial banks can issue bank bills. So why banknotes can be called bank notes - bank notes.

In fact, it is a title from that era. In Chinese, we all call banknotes money. But it's not very accurate. Because our modern finance originated from the Western financial system, the different names of "money" in English that cannot be reflected in Chinese cannot reflect the attributes of "money" in different times.

Then what is the second financial revolution? We can understand it as an institution like the Federal Reserve, which uses national credit as an asset, treats national debts as bonds, and socialized debts are created by issuing them through commercial banks.

Use corporate and personal credit (mortgage loans, car loans, etc.) as assets, and then issue such a currency. Then the clearing institutions have also formed long-term and diversified central banks, SWIFT is between commercial banks, and the Bank for International Settlements is also between central banks, and the currency issuer is completely monopolized by the central bank.

In fact, it was mainly after the end of the Bretton Woods system, since Nixon announced in 1974 that the United States would no longer directly link the gold dollar to gold, and that the dollar could not be withdrawn as a bill, and the United States began to store gold in the United States. Then it began to become the era of legal currency with national credit and sovereign credit as assets. In fact, the feature of the legal currency era is actually the era of debt.

If you understand this currency, currency, and finance, you should know the currency creation mechanism in the United States. The issuance mechanism is actually very interesting. It is actually endorsed by the debt of the debtor country. For example, like the Ministry of Finance, after the quantitative easing epidemic that we have seen recently, the Ministry of Finance issues these special bonds, and then the Federal Reserve buys these special bonds to create liquidity.

Of course it sounds simple, but the real operation is not that simple. The formal operation involves many times. We call it credit creation. It is called the second financial revolution in the legal currency era.

In fact, the credit currencies under the second financial revolution are still relatively young and have a short history. So what Marx said is good, things like currency are not indestructible, but they can be completely recreated and redesigned.

The third financial revolution is called the new financial era of decentralization. The currency issuance mechanism, including the way monetary policy is transmitted and managed, will undergo fundamental and essential changes.

There is no sign of the large-scale advancement of this third financial revolution, so we can predict it here today. What are its characteristics? Currency issuance has been monopolized by the central bank, and then it has gradually become a combination of the central bank's social issuance.

Then this basic asset starts to extend from national debt and social debt to various native digital assets. What are native digital assets? Asset creation does not come from the physical world, such as precious metals such as gold and silver, nor does it come from some endorsements such as national credit.

It actually comes from our data, or the rights and interests generated by some related network effects. The most typical of such primitive numbers is Bitcoin. The economic value brought by such a trustless clearing and settlement network based on network effects forms the basis of Bitcoin currency assets.

Of course, there are many other assets, and then the clearing and settlement institutions have changed from centralized ones like the central bank and SWIFT to the current blockchain and the protocols on the blockchain, which can also be understood as some decentralized ones. Smart contracts come and go to complete the clearing and settlement of these transactions. This is the third financial revolution.

In fact, in some situations like this, we are only predicting now, and we don't know how the future will go. But what we can see lies in the third financial revolution, which is applied to the current situation of major adjustments in production relations and productivity.

The first financial revolution was due to the transnational trade mentioned just now, and then the industrial revolution, corporate organizations, and of course, commercial banks and central banks were produced accordingly;

The second financial revolution is the US dollar, but it is said that the United States is the only one, and then the world has entered a globalization. The division of labor of enterprises is based on the comparative advantages of the country and the division of labor. The global layout of large multinational companies, Only then has a mechanism such as the endorsement of national credit and the peg of most currencies to the US dollar.

This value comes from the network effect, from the network effect brought by our participants, so we call it super-sovereign. Then it is a new economy that cannot be understood by the traditional corporate form. It needs a new currency system and some financial infrastructure corresponding to the currency system. This is the general background.

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DeFi core features and key applications

Defi is to use open source software and decentralized networks, mainly blockchains, to transform traditional financial products into ones that do not require intermediaries and can be operated without centralized operations. Transparent financial agreement.

This feature is transparency, accessibility, and financial inclusion. What's the meaning? All your operations are actually on the chain, and they are transparent to the contract. Of course, corresponding privacy arrangements can be made, and you don’t need to know who the person who initiated the transaction between the two parties is.

But this transaction can be seen. Anyone can go to the chain and click on the blockchain browser, and then see when the transaction was initiated and how many units were initiated, but who are on both sides of the transaction? It is unknown to ensure that the transaction is the financial user and the financial process, and it is a piece of financial transaction structure and protection of privacy, while ensuring transparency.

What is accessibility? That is, as long as you have a network, you can use some financial agreements like this. Unlike now, for example, if you want to use Visa and Mastercard now, it’s easy to use, but if you, as a Chinese, want to open a European/American bank account, it’s very difficult, let alone like some other Developing countries; and vice versa, it is not easy for foreigners to open an Alipay account. If you do not have a financial account, you cannot actually enjoy basic financial services.

DeFi uses a financial protocol on the blockchain that does not require auditing or approval, allowing anyone, as long as you have a network, to access basic financial services. Of course, it also brings inclusiveness, regardless of international tolerance. Sexuality and universality.

Another feature is disintermediation and decentralization. Our level of decentralization is actually mainly about removing intermediaries. For example, the recent Bank of China incident is actually a very bad typical case. The Bank of China, as a typical intermediary, sells futures products to the common people, but the financial center itself does not have very good financial knowledge, let alone whether he has started Due diligence responsibility, and then caused a lot of losses (it is said to be tens of billions of yuan).

This is just a typical example, and there are too many typical ones. For example, there was a futures company in the past, a futures company that sells software, so I won’t mention the specific name. Anyway, this company is dedicated to various futures companies, and then provides a transaction matching system.

It was later discovered that it secretly used other people's information to sort the transactions. After knowing everyone's transactions and everyone's positions, he maliciously sorted the transactions, and then through the data including transaction sorting, data mastery, ( In fact, it is) cutting leeks, letting some people liquidate their positions first, and some people liquidate their positions later, and then earn the money in it, which is all returned to the financial institution.

Therefore, the characteristics of traditional financial institutions are actually intermediation and centralization, and the problems they bring about are high costs and opacity for executives. Party A and Party B are both borrowers and lenders. If you want to borrow money, you must borrow money through the bank. The country does not allow you to use these private loans anyway, or the requirements are strictly controlled. You can only give the money to the bank, and the bank brings it to anyone. people.

The bank makes a lot of money just by earning the interest rate difference. Whether he should earn the interest rate difference, we won’t talk about it today, but it does increase a lot of unnecessary intermediary costs, not to mention whether he really used the money in the right place I went, I don't know about this.

The form of DeFi is actually to replace the intermediary organization with an agreement contract, and then there is no need for a license, no threshold, anyone can join, as long as you have a certificate, as long as you have access to the Internet, you can use your We call this the contract address, and go to the account address to interact directly with the contract.

In this way, there is no cost without an intermediary, and there is no intermediary cost like this. At the same time, because of automation and full transparency, you don't have to worry about your transaction being manipulated, and you don't have to worry about your trust agency failing your trust. It is directly related to the agreement. To interact, because the code of the protocol is open source, you can ensure that the logic of the transaction is credible.

Because the code is executed according to the transaction logic, the code is transparent, so as to ensure the non-trust and disintermediation of finance. Now its finance is what we call digitalization, Internetization, and protocolization. You can see that this is a typical Internet structure. I won’t talk about it today because it is more Internet-oriented, but what should I tell you?

Now the Internet is relatively rich, and the applications like Google and others that are carried or loaded on it are actually what we call the learning-level application layer.

Then the first piece of these protocols is actually the same as these applications. It is above the transport layer and hardware layer of our entire Internet network. You can think of it as an application, which is essentially a series of protocols.

The current main blockchain of Ethereum is actually these protocols. The bottom layer of most decentralized financial protocols is actually the bottom layer of clearing and settlement and smart contract logic operations.

In fact, then you can see that the scene in the first row is actually very rich. Here are just some application directions, which are not all. Like the most common payment, in fact, payment is the earliest use of Bitcoin, in fact, you can think of it as a decentralized payment, the first reaction. Of course, no one actually takes it now, and very few people use bitcoin as a payment tool, and they all use bitcoin as an investment product.

Now there have been a lot of what we call digital dollars as a payment tool, using dollars as endorsement assets, and then issuing 1:1 on the chain. We call it Stablecoin in the blockchain, which is actually a stable currency. The gold is put in the bank, and then the gold bills that are taken out are the same. This is actually a digital bill of the US dollar. In fact, anyone can take the digitized bills of US dollars, go to the issuing digitization, and exchange them for US dollars in the US dollar institution, so as to ensure that the purchasing power of the bills is always there.

Then there is financing, like the issuance of various projects, which is actually considered your purchase. You take real money, such as bitcoin, ether or those digital dollars, to participate in some capital. There is also borrowing, of course borrowing and lending are the same, you can save money, or borrow money, and you can also take out loans, as long as you have enough collateral, you can take out loans.

Some applications will be introduced later. There are also transactions, you have decentralized transactions without exchanges, transactions without centralized clearing and settlement institutions, and the same bets just mentioned, like whether humans can land on Mars in 2030, this is a very typical bet .

Then there is asset management, you can buy some asset portfolios in the first version, and then you can follow some so-called investment managers, and then buy their investment portfolios, and then you can synthesize your own investment portfolios for others to use purchase. It's all open and transparent, there are no gray areas. Then he has an insurance, insurance is actually similar to betting, it is nothing more than buying an odds, buying an odds for a specific event, and other things.

Then there are quite a lot of protocols on Ethereum. I think everyone who came to listen to Ethereum today has heard of it, and they all know about Ethereum, so I won’t talk about them.

Let me show you that the entire first row of ecological Ethereum is very active now. The bottom-level liquidity and transactions below the bottom-level products provide liquidity. The most important one is called Uniswap, which is our It is called a decentralized exchange, a decentralized exchange. If you are in it, you can trade with others without an intermediary. In fact, this is really incredible in traditional designs. Just imagine, you are in this stock market , you don’t need an intermediary, you don’t need an exchange, how can you trade without a brokerage?

In DeFi on the blockchain, you can trade with buyers and sellers directly in the contract. In addition, there are quite a lot of liquidity agreements like this, or there are actually quite a lot of trading agreements. Then on top of that, there are loans like Compound, asset management, insurance, stablecoins, and the stable coins mentioned just now—digital U.S. dollars, and securities can be issued on it. Some countries, such as digital securities registered in the United States or Malta.

In addition, there are predictions. I just said that, like betting, you and your opponent can bet and there are some real assets. What do you mean? For example, like gold, you can deposit things like gold in the custodian of the agreement.

The agreement custodian helps you register in a centralized way, and then uploads the corresponding data of the corresponding assets to the chain, and then ensures that a bill, or a token, corresponds to the following formal assets.

Well, there are actually a lot of these financial applications that are called aggregation. He puts the following elements, such as forecasting or betting, and then packages them with loans and agreements, and then becomes After creating a new protocol combination, it can be used directly in these applications.

It is equivalent to a kind of financial engineering. And now there are many ways to play the combination of these agreements and main agreements. You can see the bottom layer below. Let’s layer it. The bottom layer is Ethereum. In the first reaction, zero was listed, and then the Maker DAO was used as the basis. Of course, there are quite a lot of other applications now.

These are some trading protocols such as Liquid, and then there are many application companies. For these things, we call them DeFi building blocks. Just like Lego blocks, you can combine DeFi protocols one by one and turn them into an application.

But there are actually risks involved. Some time ago, a relatively large local project team was stolen 25 million US dollars. It was because hackers took advantage of the loopholes in the combination of DeFi protocols. , It’s okay if you drink beer, but if you drink beer and eat hair, you will die. The hacker took advantage of the incompatibility of the protocol combination, and then stole 25 million US dollars. However, with the efforts of the whole community, after more than 50 hours, the stolen money was recovered exactly. Come back, this is also a miracle.

Therefore, this incident has made the entire DeFi industry’s understanding of risks and safety higher, which is very meaningful. It not only recovers the money, but also teaches everyone a lesson, which is very meaningful.

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Key Protocols & Applications of DeFi

For the building block protocols of DeFi just mentioned, I will now introduce some key protocols. This is MakerDAO, which is what we call a decentralized protocol, a stable decentralized protocol, and the mechanism of the stablecoin is actually like a pawn shop.

What does that mean? In fact, you mortgage your valuable Ethereum digital currency into the MakerDAO agreement to go to the MakerDAO agreement, and then give you a standardized asset similar to a bond according to a ratio. It is actually a bond, but your bond can actually be debited. buy things elsewhere.

This mechanism is very similar to our treasury bills in the 1980s. You buy the country’s treasury bonds with money, and then the country gives you treasury bills. Claim it back, or you can get the national interest and the principal after the maturity of the principal in the future, and then the country issues treasury bills. After you take them, you can buy things.

In fact, we understand that this is actually a central bank agreement. You can use such a method in which everyone can issue their own assets and issue their own currency, but it is 1:1 with the US dollar. It uses algorithmic mechanisms and Monetary policy is used to ensure the peg between prices with the US dollar, which we call anchoring.

Then the second cornerstone agreement, called Compound, is actually a currency market, but many people like it, and most people like to call it a lending, but it is actually a currency market.

What is this? In fact, the user over-mortgages digital assets, various types and types of digital assets, and then enters Compound’s smart contract pool, and then takes them out in proportion, and other types of digital assets come out in modern times, and then the assets you deposit in, you In fact, you can get interest, and now the annualized interest can reach about 4%, which is not bad, a little higher than Yu'e Bao.

Not to mention that many other countries, such as the United States or Japan, have zero or even negative interest rates. Therefore, this kind of positive interest rate is fully open at the same time, and there is no threshold. This method of saving interest on deposits is still very popular. So what is it essentially? It is a commodity and a currency market.

Where does supply and demand interest come from? Loan and deposit interest actually come from loan interest. You borrow assets in it, and when the time comes to repay the assets, you have to pay the principal and interest, and you have to repay the interest together. So this method makes the deposit have interest, in this way.

The third basic agreement is called Uniswap, which we call exchange/transaction. In fact, if you don’t understand the trading mechanism, your first reaction may be that it is more complicated. In fact, it is very simple. It actually creates a contract pool in which two assets are tied together at the same time.

Then these two assets set up a currency curve, and you are the product of the two assets of the currency curve, which is constant. You are equivalent to 2×3=61×6, which is also equal to 6. You only need to input 1 and 3 or both sides ab as an asset, and then the other side will change accordingly;

Then because there is a currency price difference, it also provides an arbitrage, so some people will provide services in it to ensure that there are two assets in it, that is, the value between the two assets of the transaction. Constant and constant value in the market, and then complete decentralization. This kind of transaction sounds complicated, but if you have used it once, you will know that its user experience is still good.

The DeFi ecology has actually surpassed the limitations of traditional Internet finance. It adopts a decentralized financial method, allowing ordinary people or users to directly interact with the protocol instead of interacting with people. For example, the agreements I just mentioned, instead of interacting with your counterparty through an intermediary.

What are its benefits? The algorithm is these interest rates, the price of the currency is transparent, and then there is no need to worry about the price difference inside. Some people earn some price difference that should not be earned, don’t worry, and then there is no need for that kind of continuous guarantee, and then there is no centralized opponent side risk, at the same time you can hardly stop it.

This avoids, for example, U.S. sanctions or other reasons that make financial services unavailable, so it is more robust and anti-censorship, and you can rely on some unpredictable force majeure events.

And at present, most of DeFi is due to Lending, interest, especially many people who earn more interest on deposits, like myself, I have saved a lot of money in it. It was stolen some time ago, and everyone was very nervous. When I woke up, I found that the money was gone. It was all stolen. Then I worked with the community and developers to figure out a way. His collective strength got all the money back. It was quite exciting and thrilling. , It’s very interesting, because most people are actually like me, mainly borrowing, and the loans are relatively small.

In addition, there are actually quite a lot of borrowers. Although the number of borrowers is relatively small compared to ours, there are actually quite a lot of people. After they borrow money, they can buy other assets, which is equivalent to investing with leverage. You can see that this data is relatively large now. There are almost 190,000 users borrowing money in various DeFi protocols within a year.

Then the money borrowed is more than the amount, and now there are actually many interfaces, which we call wallets, which allow ordinary people to deposit directly, using RMB, US dollars, and Japanese yen to deposit funds in it. Now like some companies in the United States, you can directly deposit US dollars in it, and then lie in it and earn interest. The annualization is almost two, three, four, five percent. It is volatile, determined by the supply and demand of the money curve.

Now it is actually a big financial experiment field, and there are many new agreements in it. It combines these financial companies through the combination mentioned earlier to provide the common people with financial products similar to financial engineering.

For example, in MakerDAO, there are now many derived protocols. It builds many new protocols based on the underlying DAI, and then like Instadapp, they add some different protocols, such as MakerDAO, to Compound. Liquidity, or the decentralization of transactions, the trading companies combine it. What ordinary people buy or what investors buy is actually a combination of these agreements, and then provide users with such a service through a unified interface.

We predict that in 2020, the asset size of the entire DeFi market will exceed 5 billion US dollars. You must know that there are no large companies operating here, but some entrepreneurial projects. This is a very impressive figure. As the first reaction in the future, he may completely subvert and change the financial industry we traditionally recognize.

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Comparison of DeFi applications and traditional finance

The pyramid on the left is the traditional financial industry. You can see in it that it is actually oppressive. At the top are financial institutions like the central bank. Below the central bank are banks and commercial banks. Below are various Financial clients, and below that are businesses and various businesses that want to use these financial client services, and at the bottom are consumers.

If your consumer wants to use these services, for example, if your consumer wants to buy assets and props in the game, you need the permission of the game. If you want to open an account, if the game wants to pay, he must obtain it. The consent of payment service providers such as Visa, Mastercard or Apple Pay.

Then, these service providers do not have the authority to clear and settle. If they want to obtain the authority to clear and settle, they must obtain the banks that host the accounts. Like JP Morgan, China Industrial and Agricultural Construction Corporation in China, and these banks want to start financial business, but they must obtain the permission of the central bank. The central bank can only do it if you are allowed to do it. This is what is called oppressive.

Anything that should have been decided by the common people from the users, but now it is actually oppressed layer upon layer. But the decentralized monitoring on this blockchain is different, it is actually completely open. Instead, the settlement layer is at the bottom. The top layer is actually a variety of application layers, such as games, auctions in this market, social real estate, and donation lottery development.

DeFi is actually a big industry with many applications, and there are also many opportunities for entrepreneurship and investment. If you are just an ordinary user, there are actually many opportunities to borrow and earn interest, or there are many functions that cross-border payment can provide you with traditional financial services.

FAQ

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Q: Will Teacher Cao still use Lendf me?

A: I should still use it. Because first of all, I still have a good understanding of the team, and this team is still a responsible team. The main reason for this problem before was that they paid too much attention to business, and there was indeed a little delay in this technical aspect. Therefore, it leads to insensitivity to technical capabilities.

Because in fact, DeFi itself is actually a technology-oriented service. If an entrepreneur says that he has a non-technical background, he may not be very sensitive. But I believe that after the accident this time, if the money can be recovered, more money and resources should be invested in technology.

I will continue to use Lendfme, but asset storage will be more decentralized, and some will be put into other protocols such as Compound.

Q: How should China's DeFi road go?

The combination of DeFi and CeFi, whether it is d or c, whether it is decentralized or centralized, in fact, they are all paths and tools in essence. Finance services are the purpose, so I think Chinese entrepreneurs or China's local projects will be more united and pragmatic after this incident, and will be able to conduct in-depth cooperation with centralized institutions faster and more proactively than those in the West like Compound and MakerDAO. I think China's DeFi road will go longer and bigger than that of foreign countries.

Editor of this issue｜Wang Zelong

Editor of this issue｜Wang Zelong