1/ very good write-up from @arjunblj , however, I‘m quite skeptical of the CeFi<>DeFi convergence hypothesis. More likely it's just binary. In the short-term, CeFi-DeFi is playing the ’Front shop, back factory‘ roles, one more towards user interface and the other, the backbone. https://twitter.com/arjunblj/status/1312128490821414912

2/ I used to think that they are complimentary each other, but now it seems more exclusive, in the longer term, DeFi is blackholing CeFi. The key insurgent is that DeFi engineers liquidity in a way that we’ve never seen in tradFi.

3/ it's a competition between monopolized /siloed liquidity v.s shared/social liquidity, like regulated Taxi v.s Uber. DeFi’s Uberized liquidity is even more extreme; composable liquidity > cross-margin in traditional trading sense, it transcends dimensionally across...

4/ ...sovereignty, jurisdictions, corporate structure, product lines, analogously, a user deposit RMB on his Wechat (escrowed via ICBC account held by Tencent), it can be simultaneously tapped by a IBD client from GS for trading and a lending client from JPM for ST facility.

5/ This is exactly what's happening in DeFiland, there is no capital locality, no isolated corporate balance-sheet, no ringfenced money flow, liquidity is not just super liquid but also maintaining its quantum states, simultaneously being anywhere, everywhere at anytime.

6/ DeFi’s competitive advantages on lending and spot trading (i.e AMM) are mathematical, not just for long tail assets but also major pairs (ie eth, wbtc, stablecoin) and it doesn’t seem to have any engineering barrier to extend to CLOB and derivatives, time will tell.