DeFi Is A Replacement For Traditional Finance : Balancer


 The Head Balancer discussed the past, present, and the future of DeFi and other interesting and important topics for the industry. Where balancer heads thinks that Defi have more potential then what people are thinking.

In the Bitcoin 2021 event held at Miami, where during a talk held with Growth Head of Balancer Jeremy Musighi revealed the past, present, and future of DeFi and Balancer, along with other interesting and crucial things happening around the DeFi industry.

Related: 5 Reasons to Invest in Defi

While Musighi was asked about his opinion on the current bull run, and the reason behind the bull run, or was it a completely natural cycle in the crypto market.

To which he said that,

“I think the markets have recognized how effective DeFi is and it continues to be here and has brought more awareness and education on how DeFi is playing an important role in replacing our traditional financial services and products.”

And Musighi thinks this is a suitable reason for the bull runs, but at the same time, he also claims this as an ever-going vicious cycle.

 “Investors recognize (DeFi) with great growth opportunities and thus they tend to and invest a lot of capital into it because they know the potential of how much it will grow, and this is something that drives the bull market.

While at the same time, when the bull market and prices rise, thus also attracting more attention from other outsiders and non-participants luring them to enter and participate in crypto market trades.

While talking about the development stages Musighi said Balancer Labs and the community have learned a lot while using the Balancer V1.

In his opinion, this led to the successful launch of version 2 of Balancer, which made significant improvements in gas efficiency, with features that could meet the market’s key requirements in the UX and remained an ideal solution for a number of reasons. You can use AMM as a liquidity provider, dealer, or developer.

At the same time, he points out that the fluidity of the balancer V1 to V2 is gradually changing for safety reasons and that it will take about 6 to 8 weeks to complete.

While most decentralized AMMs rely on the blockchain built for balancer and best rivals like Uniswap and SushiSwap.

He spoke of the animosity between DeFi and CeFi (centralized finance), acknowledging that in CeFi”players have a lot of customers – they have those customer relationships”. The other is the front-end touchpoint with customers who use digital financial services.

However, it offers great potential for DeFi protocols, which have clear technical advantages and are integrated seamlessly into the back-end, but unlike CeFi “lacks in customer experience design, consumer acquisition, and collective market adoption.”

Read also: European Union Needs Crypto Regulatory Framework : France Governor