Founder of Compound Finance: CeFi will embrace DeFi

Editor's Note: This article comes fromCointelegraph Chinese (ID: CointelegraphChina), Author: MARTIN YOUNG, reprinted by Odaily with authorization.

Editor's Note: This article comes from

Cointelegraph Chinese (ID: CointelegraphChina)REDeFiNE TOMORROWCointelegraph Chinese (ID: CointelegraphChina)

, Author: MARTIN YOUNG, reprinted by Odaily with authorization.

The founder of Compound Finance said that CeFi will embrace DeFi, and there are signs that this is happening.

Global DeFi and Blockchain Virtual Summit

Speaking at the summit in Bangkok, Thailand, Leshner expressed his views on the integration of CeFi and DeFi, issues with Ethereum, and the advantages of decentralized governance.

Moderator Mukaya Panich, who is also the chief venture capital officer of event sponsor SCB 10X (the venture capital arm of Siam Commercial Bank), asked Leshner about the integration of DeFi with traditional and centralized finance.

He commented that the boundaries between CeFi and DeFi will become blurred, and centralized finance and enterprises will start using DeFi to enhance the backend to improve user experience.

"I'm really excited to see that the CeFi system supports DeFi backend operations."

But Leshner warned that most DeFi projects are built on the ethereum network, which may no longer be up to the task. Ethereum has a high degree of composability, but it is slow and expensive to use and reaches its limits, Leshner said. This, he said, has an unfortunate consequence: It will no longer be economically viable for smaller transactions and users.

"The more transactions, the more it crowds out small transactions."

When asked about the advantages and disadvantages of decentralized governance like Compound manages, the CFA pointed to two clear advantages. This means that no single entity can maliciously compromise the Compound protocol, and that anyone can help upgrade the protocol as a whole, he said.

But he said the downside is that this leads to slow governance decisions and optimizations, and the protocol will likely only evolve slowly over time. Compared to the predictable, slow-moving Bitcoin, Leshner added:"Bitcoin has been so successful because it hasn't changed much and everyone knows what it's going to bring."Leshner revealed that more "real-world" tokens will be added to the Compound platform. The current inclusion criteria are that this asset needs to be a homogeneous asset based on Ethereum and have a certain degree of liquidity. The platform will add more of these assets as they become tokenized, he said.