1/17 Sometimes we need to take a pause and remember that DeFi is not just some vehicle for digital asset speculation. It is a new financial system that is developing as a useful alternative to traditional banking and finance (aka TradFi).

2/17 Ultimately, there’s no going back on DeFi and here’s a back-to-basics thread about why

Let's start with the primary use cases of a bank: it’s a place that stores your money (even paying a little interest), helps to move it around, and lets you borrow more of it.

3/17 In old-world centralized finance, accessing these services is full of small but significant bureaucratic obstacles: proof of address, credit rating, mortgage tests, staying within government-insured deposit limits etc.

4/17 This adds cost and hassle for most and (rightly or wrongly) excludes the rest.

DeFi offers exactly the same banking services, but better -- because *YOU* become the bank. Firstly, you safely store your own money on your blockchain-protected wallet.

5/17 This is already starting to feel natural for younger generations

Secondly, moving money becomes much easier -- you send money to other wallet addresses in any country, with fixed and transparent fees and delivery within minutes or seconds.

6/17 Thirdly, you can lend or borrow with absolutely no paperwork. For example, if you connect your wallet and agree to use your tokens as collateral in @compoundfinance, @AaveAave, @CreamdotFinance etc., you will *instantly* get the amount that you can borrow

7/17 A fundamental difference is that DeFi runs on CODE. Everyone who understands the code can review it.

8/17 Even if you’re not at all technical, there are blockchain explorers you can use to check the balances of protocols at any time, to see where money is going and who is healthy / unhealthy.

9/17 Can you check the balance and financial "health" of your traditional bank whenever you want? No!

Banks can crash or go bankrupt and take your money with them, and you won’t know till it’s too late.

10/17 With the help of #blockchain, #DeFi, and community driven networks, the warning signs will be visible / spoken of much earlier. As new services for insurance, auditing and security checking mature, things will get safer still.

11/17 This is not some baseless prediction: it’s what has happened with #Bitcoin , which has already matured to a level of security that allows big institutions to hold it, buy it, offer it and accept it as an asset; DeFi will grow up the same way.

12/17 In a nutshell, DeFi is "living on a blockchain". With the right tools, its services are transparent and verifiable for everyone. You can know exactly the balances, how much is borrowed, the collateralization ratio, and the yields. And it is being regulated by the users!

13/17 Here’s the icing on the cake: DeFi protocols are set up to share their revenues with the users in a way which makes traditional bank interest look miserly.

14/17 E.g., 80 percent of @Uniswap trading fees are being sent to its users (DAO, Treasury, Buyback like @SushiSwap because they are the ones underpinning the protocol. They are what makes the protocol LIVE.

In comparison, traditional finance looks slow, clumsy and unrewarding.

15/17 It will probably survive in some shape or form, but in the future it will not be the dominant provider of simple banking services that are much better delivered by DeFi

16/17 Just recently, our Delaware company was denied the service from @GoVeem for being affiliated and funded by our BR Capital, a crypto fund… (we are a regulated fund and the company is not directly dealing with crypto, but only developing software!).

17/17 And @GoVeem - they claim to be crypto friendly and even making payments in crypto. TradFi is absurd and sad. But the good thing is that TradFi days are on countdown.

Just Smile and wave

DeFi is coming