How to Avoid the Death of DeFi in the Wake of FTX

How to Avoid the Death of DeFi in the Wake of FTX - Check out the story here

The crypto exchange’s collapse is an inevitable outcome for an industry yet to find its use case.

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For crypto to survive, it needs to learn from the very financial sector it set out to replace, says Brent Xu, the CEO of Umee.

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Decentralized finance (or DeFi) is characterized by speed, autonomy and transparency unmatched by legacy banking institutions.

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[{"selector":"#anim-cafede70-4249-4818-af63-93bd8931e34c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] The financial crises of the past half-century, brought about by opacity, obfuscation, inefficiency and excessive human meddling, clearly justify these innovations. Arrow

[{"selector":"#anim-e77b7cc9-657c-497d-985a-78f18caf4ea2 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.63390892262842%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] While decentralized trustless technology is revolutionary, we watched as the industry was being run by centralized organizations like FTX, Arrow

The uncomfortable truth is that to build lasting value, DeFi and blockchain need real-world use cases.

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Without a value proposition beyond “line-go-up,” it's difficult to justify DeFi’s innovations.

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Blockchain just becomes an overly complex mechanism for classic casino capitalism.

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