The Coming Trust Revolution
As we have entered this new year 2022, we are seeing massive developments in Decentralised Finance (DeFi).
Established Silicon Valley venture capital firm Sequoia has announced that they intend to invest between 500 and 600 million USD in cryptocurrency tokens. This is to allow the company better access to web 3.0 investment opportunities and have a say — and vote — in companies’ governance using tokens.
The opposite trend, crypto moving into traditional derivatives markets, is also observable. Larger crypto platforms are seeking to buy US financial service companies with licences to get access to the tightly regulated US market. No wonder: the current volume of crypto futures and options trading is already estimated at 3 trillion USD. So the demand for decentralised investment opportunities is immense. But as most of the trading takes place on unregulated platforms, DeFi still struggles with “trust issues”.
Some of Binance’s operations are said to be registered in the Cayman Islands, a British sovereign territory known for being an off-shore tax haven.
Much of it stems from consumer protection concerns which we fully share. There is a strong case for the necessity democratic oversight and regulation as well as transparent and open company governance. Indeed, this is what blockchain was destined to bring about: a revolution in trust.
But some of the trust issues are a result of misunderstanding — voluntary or not.
Recently, for example, the Wall Street Journal has published an op-ed naming virtually all web 3.0 multi-level marketing schemes and suggesting that blockchain-based organisations are inherently inequitable, “pyramid-shaped”. While concerns with DeFi today may be well-funded, this article is ripe with fallacies and distortions regarding both economics and tech. For example, crypto scams, rampant Ponzi schemes, and the overall volatility of total value locked in blockchain technologies are legitimate concerns. That not all NFTs are valuable, is not.
We at DeBond Protocol aim to improve DeFi by providing a pioneering decentralised bond exchange ecosystem. Bonds play an important stabilising role in financial markets offering predictable, relatively low-risk investment opportunities. The lack of blockchain-based bonds has been a major shortcoming in DeFi. It has so far added to its volatility.
We want to tackle this — efficiently, transparently, and securely. We believe that the world is on the cusp of a trust revolution. Blockchain — unique pieces of computer code allowing for independent, decentralised verification — makes securing any asset more reliable than ever.
Join us on our journey towards trustworthy blockchain finance. Let us create a fair and sustainable DeFi together.
Pitch Deck: shorturl.at/ozBT1
Product Timeline: a demo of our frontend is available here https://debond-protocol.github.io/ (use test Ether in the HECO chain for some operations).