In support of the upcoming FinTech Growth Forum on September 19th, we are delighted to feature a series of profiles with some of the members of Innovate Finance who are hosting the event to support their members scaling journeys.
To kick off the series, we talked toTom Eyre, CEO of the financial inclusion fintech business, nooli.
Here’s Tom with his answers to our questions (in bold):
Who are you and what’s your background?
My name’s Tom Eyre and I’m the CEO and co-founder of nooli. I’ve been working in the finance industry for about 10 years. Prior to my current role I was an investment advisor for a group of investment houses in China and Kazakhstan. I was also part of the founding team for a corporate insolvency firm here in the UK. I’ve been lucky enough to work in some great teams across the world and had a lot of exposure to various sides of the market. As I gained more exposure to UK consumer finance, and especially the issues around the sub prime market prior to 2007/8 and just after, I realised the opportunity that FinTech brings to the day to day lives of those who are financially excluded.
In 2011, Julie, my co-founder, and I had the idea for Credit Improver. Credit Improver was to become our first customer journey dealing with the financially excluded and specifically those who are credit excluded. We bootstrapped that company from the ground up and created a solution that was ultimately to help thousands of credit-excluded people to build their credit histories.
In 2016, we grew the team by bringing in Gregor Mowat. Gregor had returned to the UK after a career overseas as a senior partner with KPMG in Russia, Kazakhstan, the CIS region and Asia. Gregor brought a new skillset to the team and together we quickly identified where we could better serve our customers. With the introduction of Gregor to the team we also restructured our business into newly-founded nooli UK Limited (nooli). nooli is an umbrella company for all the businesses that provide our customer journeys, Credit Improver Ltd, DDC Financial Solutions Ltd and LOQBOX Savings Ltd. Each company plays a vital role in our two customer journeys, Credit Improver and LOQBOX. Gregor is CFO and co-founder of nooli.
What is your job title and what are your general responsibilities?
My role is CEO and co-founder. In an early-stage business the lines get blurred around specific jobs. On a day to day basis I set the strategic direction for the business alongside Gregor and manage our developers to make sure we are building the right parts of the product at the right time. Together, Gregor and I are responsible for everything that needs to get done in a growing FinTech company. We work on direction and strategy, system developments, marketing, partner relations and partner negotiations as well as accounts and financial management for the business. As I suspect most FinTech founders can relate to, we try to be experts in everything (not always succeeding).
Can you give us an overview of your business?
At nooli we bring the financially excluded into the financial system through innovative financial inclusion journeys that build our customers’ credit histories. This helps our customers to access better financial products at better prices. Our newest journey, LOQBOX, is the first solution of its kind to allow everyone the opportunity to build a credit history while they save, for free.
LOQBOX takes people who are invisible to the banking and credit system on a journey that makes them visible. At the end of this journey, they are introduced to bank current, savings and investment accounts having built a credit history and a savings lump sum and learned about how the financial system works. And all this is entirely free for LOQBOX customers.
LOQBOX is the answer to the problem of ‘thin file’ within the existing credit system. ‘Thin file’ is a term we use for people who have borrowed very little in the past and as such do not have visible evidence of how well they can manage credit. We use the term ‘no file’ for people who have so little credit history that their profile cannot even be identified by the Credit Reference Agencies. When someone who is ‘thin file’ applies for credit, the lender needs to guess at their ability to manage credit. This often leads to applications being rejected which perpetuates the ‘thin file’ cycle. With LOQBOX, this group of people now have the opportunity to proactively build their payment history ahead of future credit applications, making them more likely to be accepted for future credit applications.
One of the great things about LOQBOX is that it works with all the existing parts of the credit system, without having to wait for regulations or market practice to change in order to help the financially excluded. LOQBOX doesn’t require the credit reference agencies or lenders to change their systems which means the benefits for our customers are immediate. This is a core principle for all our products. We like disruption but disruption should be for the benefit of the customer or user before all else.
Because of this, lenders can offer LOQBOX as a solution to those applicants whose applications have been rejected. This provides the applicant with a positive experience and ensures that the lender is providing a useful solution to applicants who would otherwise have been rejected. LOQBOX then acts as an incubator for those customers on behalf of the lender, enabling them to build their credit worthiness whilst saving money… for free. We are then able to soft search each customer’s credit profile against the original credit product they were rejected for. This ensures that the moment the customer is eligible for the credit they originally wanted they can access it without having to complete a new application. This works well for LOQBOX customers because it ensures they aren’t stuck in the ‘thin file’ cycle and are able to access the credit they were initially refused at a reasonable price and it works well for lenders because they don’t have additional marketing cost for these customers.
Since the post-pilot launch of LOQBOX in July 2017 we have seen a great response from our site visitors. Conversions are holding steady in strong double digits and feedback from our early users is very positive. We have signed significant deals with financial comparison websites, credit score providers and consumer credit lenders. Because of the value-add for our partners and their users we will be growing this B2B funnel over the rest of 2017 and 2018. We have also seen an exceptional initial response to our small B2C trials and will be rolling out a larger B2C campaign in Q4.
Tell us how you are funded.
We bootstrapped our initial product which has been a great experience. We were extremely lucky to find a fantastic developer who was happy to work almost exclusively for us at a reduced rate to create the sizeable system our products run on. We have taken on a small round of Angel investment which led to the creation of nooli as an umbrella structure and ultimately to us co-founding our LOQBOX product. We plan to raise a growth round in the not so distant future but we don’t want to lose the mentality that bootstrapping the business has given us.
Why did you start the company? To solve what problems?
Throughout the world, people who are invisible to the banking and credit system, the financially excluded, are blocked from maximising their personal and economic potential because they cannot access goods and services in the same way or for the same price as the financially included. This problem affects people in developed economies and in emerging markets in different ways but with the same basic outcome: social mobility and aspiration are prevented from flowering.
Developed economies: ‘Thin file’ people in the UK, find it difficult to access basic products and services or are charged a premium for them. For example, when someone wants to buy a mobile phone on a monthly payment contract, the phone company runs a credit check on them and will not give them the contract if they are ‘thin file’. As many as 40% of phone contract applications are refused because of this. The same group is blocked from paying for utilities such as gas, water or electricity monthly in arrears, meaning that they have to prepay at significantly higher rates. These problems are compounded when individuals are trying to apply for credit cards, loans, car finance or even mortgages.
Emerging economies: In the emerging markets, the problem is broader. Almost 50% of people do not have a bank account, living in a permanent cash economy where saving is extremely difficult and there is little or no financial safety net when things go wrong. The acceptance criteria of banks for new customers often mean that the majority of those without bank accounts would not qualify if they applied. Whilst new technology (eg payment by mobile phone) allows people to participate in some elements of the financial system without having a bank account, they remain blocked from much of the benefits of being fully financially included. Efforts to fix global financial exclusion are among the top priorities of governments worldwide and organisations such as the World Bank and are being supported by the Bill and Melinda Gates Foundation.
Who are your target customers? What’s your revenue model?
For all of our journeys the aim is to help the financially excluded, specifically those who are credit excluded. We are the first step on the credit ladder for people who are ‘thin file’ and ‘no file’. LOQBOX enables these individuals to build a credit history which makes them visible to the credit system as well as helping future lenders understand their ability to manage regular monthly repayments. For our LOQBOX customers they also build a savings pot at the same time.
Lenders assess ‘thin file’ or ‘no file’ customers as belonging to the subprime sector, which can often seem unfair. The subprime sector is the part of the credit market where customers are charged more to access credit or credit-related services or entirely denied access. These individuals have rarely done anything wrong. They are simply being penalised by dint of lack of visibility or history. There are many reasons why a customer may be ‘thin file’ or ‘no file’ and therefore need our help but the main groups are:
Young people – those who are young and have never had the opportunity to borrow in the past have by definition little or no credit history. This can make getting access to credit or services extremely difficult.
People recently moved to the UK – there is no global mechanism to share credit data so individuals moving to the UK from abroad are likely to find they have very limited borrowing options when they first arrive. This is true for foreign nationals moving to the UK and also returning expats who are often invisible to the system upon their return.
People who have deliberately never borrowed – there is a large group of people who have deliberately stayed away from credit. This leaves them with little or no credit history. As we now rely on our credit histories for much more than simply credit cards and loans the need for it increases. We are now finding that those individuals who have never borrowed are finding it difficult to access basic services such as mobile phone contracts.
Armed forces – we find that many people in the armed forces are having difficulty accessing credit and services when they leave and return to civilian life. With overseas postings, deployments and life on camp there is often no need to access credit during their time serving. This leaves them with little or no credit history when they leave. As an ex-reservist I am particularly passionate about helping this group of people.
The LOQBOX revenue model is very simple. We monetise on our base LOQBOX proposition by introducing our customers to banking and savings providers at the end of their LOQBOX journey. We additionally monetise through affiliate marketing opportunities built into LOQBOX Learn, our proprietary education journey that runs in parallel to LOQBOX.
Distribution is driven through two main channels: B2B and B2C.
B2B is our main channel prior to securing growth funding. We have signed a series of agreements with financial comparison websites, credit score providers (including the UK’s largest free credit report provider) and consumer credit lenders. In each case, when a customer of one of these partners is declined for credit, instead of simply saying “no”, the customer is introduced to LOQBOX. There is a very strong consumer-protection movement in the UK that is known as Treating Customers Fairly (or TCF). LOQBOX is seen by our partners as an excellent TCF solution when customers are declined.
In addition, for the mainstream lenders, LOQBOX can act as an incubator, soft searching each customer’s credit profile against the original credit product they were rejected for. This ensures that the moment the customer is eligible for the credit they originally wanted they can access it without completing a new application and has the added advantage for lenders of reintroducing those users into their lending products without additional marketing cost.
Our B2C distribution is currently driven through small, targeted AdWords and Facebook campaigns. This will become an equal provider of customers once growth finance has been raised.
If you had a magic wand, what one thing would you change in the banking and/or FinTech sector?
If I had a magic wand I’d remove the barriers that make cooperation difficult between incumbent financial institutions and FinTechs. The beauty of most FinTech firms is that they set out to address specific market problems. If it was possible to seamlessly work with incumbents, I think they would find that most FinTech solutions add huge value to either themselves directly, their customers or both. In our particular area, financial inclusion, a handful of FinTech companies with great solutions could end financial exclusion if there were no barriers to cooperating with the incumbents. I should also add that I think the incumbents largely agree on this but often find it difficult to overcome an ‘old-economy’ suspicion of cooperation. However, we have seen good progress in this area over the last year.
What is your message for the larger players in the Finance industry?
Let’s do it together! The FinTech revolution is here and if we can work together we will achieve the right outcome for customers, which is the only outcome that really matters.
What phone are you carrying and why?
iPhone “something”. I’m not an early adopter of technology so I got on the iPhone bandwagon a few years late but I’d never go back. It’s one of the most useful things I own. However, I massively underestimated the amount of storage I’d need so I’m forever deleting stuff to make room.
Where do you get your industry news from?
finextra.com for FinTech news and The Economist for general insight
Can you list 3 people you rate from the FinTech sector that we should be following on Twitter?
I find Twitter a bit of a distraction so I don’t use it often but when I do, this who I’m interested in:
David Brear, @davidbrear, 11fs CEO, good insight and great podcasts
Chris Richards, @finteched, great guy and always useful for opinion and insight
Barney Hussey-Yeo, @Barney_H_Y, co-founder at meet Cleo, love the app so I like following what they are doing
Can you suggest the name of an Angel Investor or VC that might be interested in being profiled?
Not at the moment. I’ll come back to you on that after our next funding round!
What’s the best FinTech product or service you’ve seen recently?
I’m currently loving Cleo (www.meetcleo.com). Despite being pretty good at managing my money Cleo has put me on another level. I now know that a disappointing amount of money seems to go in pubs!
Finally, let’s talk predictions. What trends do you think are going to define the next few years in the FinTech sector?
I’m not sure these things are going to ‘define’ the sector but they are what I’d like to see advancing over the next few years. 1. Advancements in Financial Education through AI. 2. Blockchain as a solution for payment remittance. And as a prediction I’m really interested to see how Banks manage to shift their brand and proposition to accommodate the way consumers are beginning to interact with financial services.
As far as financial education goes, in the UK we are rubbish at it. As a country that is. It’s shameful that young people leave education knowing whether Sam or John will reach their destination fastest based on their respective modes of transport yet don’t know how what an overdraft is or why APR is important. I think there is a huge opportunity to utilise AI to create financial education that is not only tailored to an individual’s ambitions and current level of understanding but also marries up education with commercial opportunities at the right time for those users. This is the kind of value-add that removes friction from commercial B2C offerings.
As CEO of a FinTech company that processes large quantities of payments on a monthly basis, I’m crying out for a solution to payment collection and processing that is secure, controllable, affordable and doesn’t rely on a three day BACS clearing window. My suspicion is blockchain will provide the answer to this with direct settlement from customer to provider.
Lastly, I don’t think it will be long before Banks cease to exist as we know them. With the UK’s new open-banking legislation (Payment Services Directive 2 or ‘PSD2’), the advancement of middleware and the obvious problem of legacy infrastructure that most high street Banks use I can see a future where Banks exist principally to hold customer funds and to design and build financial products while consumer engagement occurs through third parties such as middleware providers. This would remove banks’ direct relationships with consumers, calling into the question the need for Banks to invest so heavily in building their own brand. If customers use an app or third-party service to manage their money that talks to them in a way they understand and that connects them with all the different financial products that they are interested in, the importance of the brand behind these products becomes increasingly less important than the basic product functionality and service itself. I’m looking forward to seeing how traditional Banks counter this move.
Thank you, Tom, for answering our questions today. To find out more about nooli, visit them at www.nooli.co.uk
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Here’s Why Analysts Think Bitcoin Will Rally Towards $17,000 by EOY
- Bitcoin’s price has been caught within a consolidation phase around $13,000 ever since it was rejected at its recent highs of $13,200
- This is around the price at which it has been trading throughout the past few days, with buyers and sellers being unable to take control of its near-term trend
- Yesterday, bulls did attempt to set fresh yearly highs and kickoff a leg higher, but it resulted in a rejection
- This shows that buyers don’t currently have enough support for another push higher
- One analyst explained that a push towards $17,000 could be just months away, but it may first see some consolidation
Bitcoin and the aggregated crypto market are consolidating following Bitcoin’s recent rejection at its yearly highs.
The cryptocurrency has been unable to spark any sustained moves past $13,200, signaling that the selling pressure here is significant and may continue slowing its ascent.
Despite its short-term trend being somewhat unclear, there’s no questioning that Bitcoin’s macro trend is shaping up to be extremely bullish.
As such, one analyst is noting that a move to $17,000 could be just a couple of months away.
Bitcoin Consolidates Around $13,000 as Buyers and Sellers Reach an Impasse
At the time of writing, Bitcoin is trading down just over 1% at its current price of $13,000. This is around where it has been trading throughout the past few days.
Yesterday, bulls attempted to break this trend and propel it higher, but a move past $13,300 resulted in an influx of selling pressure that sent it reeling lower.
Its inability to see any sustained rally does indicate that the selling pressure it is facing above its current price level is quite significant.
Where it trends next should depend largely on whether or not it can push past the resistance laced throughout the lower-$13,000 region.
BTC Poised to See a Sharp Climb to $17,000, Claims Analyst
He is specifically pointing to $17,000 as a target that he expects to be reached by the end of the year.
“I think this is a likely scenario, not expecting a clear breaker above $14,000 yet. A retest of previous resistance zone to build momentum towards the next rally towards $17,000 beginning next year.”
Image Courtesy of Crypto Michael. Source: BTCUSD on TradingView.
The coming few days should provide insights into whether or not the resistance Bitcoin is currently facing will be enough to spark any selloff.
Featured image from Unsplash. Charts from TradingView.
InfinityDefi: A Flexible, Low-Risk Crypto Collateral Lending DeFi Platform
The cryptocurrency industry has come a long way since its inception, as the underlying technology undergoes constant evolution. The latest advancement in such development is the concept of Decentralized Finance, popularly known as DeFi. As the DeFi movement rages on, a lot of new, innovative projects have entered the market, offering a great deal of flexible financial products to the community.
One such innovative project is InfinityDefi, a state-of-the-art composite cryptocurrency asset management platform that offers much-needed financial services to the community, helping them put their crypto assets to good use. Created by a team of experts in crypto, finance, technology and legal fields, InfinityDefi has positioned itself as the world’s first multi-collateral lending DeFi platform where users can deposit, lend and borrow cryptocurrencies at some of the industry’s best rates.
The entire InfinityDefi ecosystem comprises a series of derivative products including multi-stablecoin index, DEX, liquidity aggregation platform, safety reserve, options and convertible debt. These products together bridge the gap between unused crypto assets and demand for short term borrowing, thereby enabling everyone involved to make profits.
The InfinityDefi protocol is fuelled by the INFI ecosystem token and the PPT equity token. While INFI enables the token holders to participate in project management, control financial risk, and vote in the decision-making process, PPT act as reward tokens earned against transactions made on the platform. The PPT tokens can be exchanged with INFI.
Collateral Loans on InfinityDefi
InfinityDefi offers an aggregated product with crypto collateral lending and savings using a flexible pledge and redemption mechanism. On the platform, users can utilize their crypto holdings to earn interest or secure a short-term loan. Unlike other crypto lending DeFi solutions currently in the market, InfinityDefi supports secondary loans and multi-value-added loans, which helps users unlock more value and liquidity from their assets. Collateral financing on the platform can be secured from different creditors while maintaining an ultra-low pledge ratio of up to 10% less than other peers.
Users can use a wide range of cryptocurrencies including DAI, USDT, USDC, TUSD, BUSD, HUSD, ETH, HT, OKB, and more as collateral for lending and borrowing. The utilization of a unique polymerization pool in conjunction with an algorithmic interest rate model that dynamically adjusts interest rates to balance supply and demand. All deposits and disbursements are directly processed from the polymerization pool, which includes servicing of the secondary loan on top of existing loans, against the initial collateral and multi-value-added loans where users can pledge the value-added part of collateral to get additional loans.
By design, InfinityDefi has some of the lowest position coverage for collateral which is set at a maximum of 145% and a minimum of 125%, in case of secondary loans or a fall in the value of collateral. In addition, the platform also has an auto-liquidation feature in place that dissolves the collateral in case the value of collateralized assets falls below minimum position coverage and the borrower fails to deposit additional assets to cover for the shortfall. The liquidation of assets happens at the prevailing market price to recover the principal and outstanding interest, with any excess funds returned to the borrower. During liquidation, if the value of available collateral doesn’t cover the pool’s exposure, InfinityDefi protocol’s safety reserve will step in to cover the losses, thereby ensuring the interests of investors and borrowers are protected at all times.
These features also enable InfinityDefi to provide 5% lower loan rates, 20% higher loan limits and faster capital turnover than other DeFi platforms.
Advantages of InfinityDefi Collateral Loans
The InfinityDefi platform allows all the stakeholders to profit from their crypto assets to earn both active as well as passive income. For those looking for earning a passive income, holding crypto assets, and waiting for their value to appreciate is not the best option, as the volatile nature of markets creates a lot of uncertainties. Instead, they can deposit their assets on INFI DApp to earn interest on their holdings. The interest rate for such deposits are directly related to the Polymerization Pool interest rate, calculated using the formula:
*where ‘j’ is one of the deposited cryptocurrencies which is part of the polymerization pool
The deposited principal and accrued interest can be withdrawn by the user at any time. Based on the demand and supply, the interest earned on deposited assets over time can potentially turn out to be more than what the depositor would have gained by holding, more so, in case of a stablecoin.
Meanwhile, collateralized loans help those either in need of funds to meet their obligations or those looking for additional liquidity for trading. The reduced interest rates, along with options for secondary and multi-value added loans make it easy to secure necessary funds for trading needs, which could help increase the margins on profitable trades. It could also be used for arbitrage, leveraging the interest rate gap on different DeFi lending platforms to generate profits instead of directly using the price difference of underlying assets.
The PPT tokens earned performing each of these actions also adds to the profits. The amount of PPT earned depends on the collateral/loan amount and duration. These PPTs can be exchanged for INFI and traded on exchanges where the token is listed.
Overall, InfinityDefi provides a safe, profitable, transparent, and low-risk way for users to invest and manage their crypto assets.
Learn more about InfinityDefi at – https://www.infinitydefi.io/
Read InfinityDefi whitepaper at – https://www.infinitydefi.io/uploadfile/2020/0929/20200929061612368.pdf
Join InfinityDefi TG group at – https://t.me/infigroup
DeFi Still Needs a Silk Road Moment
Mainstream criminal adoption would prove that decentralized finance (DeFi) is building tools with real utility, because if there’s any one group that is both underserved in its access to sophisticated financial products and willing to pay huge premiums to acquire them, it’s criminals.
The Silk Road was launched in February of 2011 and quickly became the first example of Bitcoin’s product-market fit. While some proponents of cryptocurrencies argue that today criminal activities are a small percentage of all cryptocurrency transactions, censorship resistance is one of the key features of all decentralized technologies and criminals have played a part in crypto’s wider adoption.
Boaz Sobrado works in tech, bringing the opportunities of the internet to those who need them most.
Bitcoin’s ability to make payments “the man” doesn’t want you to make is what makes the cumbersome tech worth it. This can include criminal activity such as ransomware and darknet markets (DNMs), but also funding Sci-Hub (a rogue academic publisher) and opposition leaders in oppressive regimes.
Adoption by criminal enterprises is evidence of the product/market fit of censorship-resistant technologies and an indicator of whether innovation will see usage in the non-criminal world. It would have not been possible to create the Silk Road without a truly effective censorship resistant payments method. The fact that Silk Road and other criminal enterprises are able to use bitcoin effectively is evidence cryptocurrencies are a useful and censorship resistant tool. As of now criminal activity online is mostly based on bitcoin, although other cryptocurrencies, such as monero, also play a part.
The 2017 initial coin offering bubble and “games” like FOMO3D have shown that Ethereum is useful for a different sort of criminal activity: unregistered security sales and other elaborate Ponzi schemes. In a way, this is evidence of its effectiveness as a permissionless smart contract platform. But just because Ethereum has proven itself to be useful for Ponzi schemes and scams does not mean it is useful for more than that. Criminal adoption is a necessary, but not a sufficient, condition for the success of censorship-resistant technologies.
The latest hot new trend on Ethereum is decentralized finance (DeFi). According to Associate Professor Jeremy Eng-Tuck Cheah, DeFi is the ability to create and use “financial services using smart contracts, which are automated enforceable agreements that don’t need intermediaries like a bank or lawyer and use online blockchain technology instead.”
I’ll believe DeFi has a product-market fit when drug smugglers can buy trust-minimized insurance for their shipments and retail speculators can gamble on the price of cocaine in Australia the same way they do with the price of oil in Texas.
These contracts are programmable and can be built into decentralized applications (dapps). We now have automated market makers, decentralized autonomous organizations (DAOs) that play an important role in funding allocation, protocols such as UMA and SNX for building synthetic assets that mimic the price action of off-chain assets, decentralized price oracles such as Chainlink to bring off-chain data onto smart contracts, and all sorts of other infrastructure that were not available in 2017.
Some would argue this is not new infrastructure, but these are just fishy toys designed to take money away from fools. Is there real utility to this new financial infrastructure? Or are most of the problems DeFi is solving problems the same problems DeFi caused in the first place, as Nic Carter believes?
There are a few hints that financial infrastructure of criminals is being built. One of the largest DNMs, Hydra, considered doing an ICO late last year but eventually desisted. Given the extensive history of DNM exit scams, it is highly risky that a DNM would be tempted to take the funds they raised and run. The largest and most trusted DNM, Empire Market, recently exit scammed, reportedly taking $30 million in BTC of user’s funds. Given that governance tokens are all the rage these days, why not set up a market that can be owned and managed by both the users and the vendors in a trust-minimized way? Think Uniswap meets the Silk Road.
Another product DNM vendors would gladly purchase are insurance products that protect against market exit scams and other sources of systemic risk, such as continued DDOS attacks against DNM sites. Current DeFi analogs include Nexus Mutual.
Disputes over insurance claims and even over drug shipments could also be handled in a decentralized way. Dispute resolution is one of the most resource-consuming problems of DNMs, and dispute resolving admins are proven to be security holes as a trusted third party. Why not outsource dispute resolution to a decentralized platform such as Kleros?
See also: What Is DeFi?
The price information on the DNMs themselves can be used to create financial products. A price index can easily be assembled for a variety of products ranging from high-purity cocaine in Florida to amphetamines in Australia. In the same way the West Texas Intermediate (WTI) oil price is a reference price for oil markets, the South Florida Cocaine index could be a reference point for cocaine markets. Synthetic assets such as perpetual swaps could be built upon the price index using the Perpetual Protocol or SNX. Producers and smugglers would then be able to hedge their positions, in the same way airlines hedge their fuel costs for the year using WTI futures.
History doesn’t repeat itself, but it rhymes. If these projects truly are censorship resistant and create value, we will inevitably see them adopted by those who need them most: criminals. I’ll believe DeFi has a product-market fit when drug smugglers can buy trust-minimized insurance for their shipments and retail speculators can gamble on the price of cocaine in Australia the same way they do with the price of oil in Texas.
For the DeFi enthusiasts reading this, it may be worth thinking: Will we be seeing this sort of adoption? If not, what is stopping it from happening? Those reasons are the true obstacles to the growth of DeFi adoption.
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