Laguna Labs CEO Stefan Rust discussed the details of MakerDAO and how the decentralized finance (DeFi) ecosystem should consider the next steps.
Laguna Labs CEO Stefan Rust warned the DeFi community to be vigilant for institutional investors. MakerDAO is one of the world’s leading DeFi projects, and its DAI stablecoin is widely adopted within the crypto ecosystem.
According to Rust, MakerDAO’s US dollar peg token, DAI, is today the only truly successful decentralized semi-algorithm stablecoin on the market. He said:
“MakerDAO has overcome some of the most difficult situations in cryptocurrencies and the wider financial markets in its five-year presence. Cryptocurrency crashes between 2018 and 2020 and subsequent From the recession to the crisis caused by the outbreak of COVID-19 to the current turmoil caused by the epidemic of global inflation (caused by the epidemic of money printing), MakerDAO has overcome everything. “
Rust attributed DAI’s growth to MakerDAO’s strong governance model. He triggered the COVID-19 crisis to fully rethink how DAI is being supported, and through a democratic process that includes the entire user base, MakerDAO saves DAI and explodes decentralized finance. It was revealed that it was possible to implement capital measures that would pave the way for. In 2020.
Despite the growth of the DeFi ecosystem, Rust emphasized the unhealthy large-scale entry of institutional investors into the MakerDAO community and other DeFi projects.
That’s a welcome development, but Rust pointed out that institutional investors who determine the terms are generally not good for the growth of the cryptocurrency industry.
As a result, he urged the wider community to avoid taking simple money and continue on a natural path of growth. Rust said.
“We only need to look at the traditional financial sector to see the consequences of such short-sighted desires. After more than a decade of unprecedented financial printing, the entire world economy is probably We are facing an inflationary situation like never before. Most monetary policies have run out and the central bank leaves little ammunition to tackle the rising prices that are leading us to the global recession. Not.”
With rising inflation levels in Africa, South America, Europe, and the United States, Rust believes the crypto sector is the light of hope in this dark atmosphere.
He said the world now needs a fully decentralized network with a truly global and fully borderless reach. Blockchain has the ability to open financial markets to anyone with a smartphone.
Rust pointed out that DAI, DeFi space, and other stablecoins are approaching, but haven’t yet created a universal asset for everyone to use.
He pointed out that the idea of ”flat coins” is emerging. It is a cryptocurrency fixed to the value of a basket of commodities that allows users to maintain the value of wealth in an inflationary environment.
Rust has added it.
“Combined with a secure and fully audited system of asset collateral, this would be a huge leap in the crypto world. It seems unlikely that interest rates will soon exceed inflation (banks are easy). If you’re crazy about government funding), digital assets are really just Facebook or Amazon away from mainstream recruitment. Projects like this could finally upset us.
Rust believes that a globalized financial system is emerging on the blockchain. But allowing institutional investors to revitalize markets for growth before harvest will lead to the death of ecosystems.
Therefore, Rust called on all DeFi projects to carefully consider what to do next. This is an important time for the broader decentralized financial markets.
Stefan is the founder of Laguna Labs, a leading blockchain developer, under which he launched trustednode.io, truflation.com, and nuon.fi.