What Brings Capital Back to DeFi? | Roundup

“It's been a month for DeFi. 500,000,000 some 500,000,000 mostly between Drift and Kelp, but it's not great. Not great. You know what this reminds me of is do you guys remember it it just feels very reminiscent of the post FTX c five blow up.”

“Lazarus Group obtained about $2,000,000,000, in hack proceeds last year from DeFi and crypto. That is a non trivial amount, and the exploits here are getting far, far more sophisticated. So a part of this story is we could be doing better in terms of multisigs.”

“I think for a while, the last few years, the industry has optimized for scalability and speed and whereas in the early days of blockchain, we really optimized for security. And I think that pendulum is swinging back. Now we know that we can have fast chains. I think we now need to work out how we have secure chains.”

“I expect the same thing here at d five. I think it's reached probably a bottom, and it's gonna take maybe a year or two plus. Then it'll come back in a massive way, and I think there's gonna be some great innovation learning from these problems and then, yeah, new protocols and primitives being built.”

“And you have, like, the Cominos and the Morphos of the world who maybe started with a more, isolated markets or, modular approach to lending as opposed to, the more, you know, structured product of of a core. And there are trade offs to both. Right?”

“I think it's pretty clear that the driver of the let the next cycle or at least a big part of the story is gonna be different types of actual real world assets and people using it, like, RWA looping, this broader, trend. Shout out three f, small but proud bag holder there.”

“The new market is agents accessing something because it's reliable when it works and it's secure. And I think that market is just getting started, and I think that's a massive opportunity right now for both Morform and Aave and human trust brands as well as new entrants that are popping up.”

“The tough part there is they're not, you know, RIAs or whatever else. They don't have the extra level of accreditation, you know, that you maybe might want as a user in future. Like, when you have companies like Bitwise come into the bulk curation space.”