DeFi "performed perfectly under pressure," experts say

During a panel at the Bloomberg Crypto Summit conference, several players in the decentralized finance (DeFi) sector expressed their views on issues related to this sector. According to these experts, the overall balance is positive, and the good health that the protocols showed in the context of the bear market experienced in 2022 was also underlined.

Matthew Roszak, president and co-founder of Bloq, a services company for decentralized applications, DeFi and Web3, expressed himself in this sense. In his speech he stated that this year's DeFi saw "the good, the bad and the horrible".

According to Roszak, "the evil was LUNA" and the collapse of the ecosystem of the Earth network that generated enormous losses for many Investors worldwide. These losses were the "evil" of the semester. The whole affair "was a huge failure," she said.

“The good thing is that DeFi has been put to the test under pressure and has performed as planned to the best of its ability,” he commented. The fact that companies like 3 Arrows Capital have been liquidated proves that DeFi works, she said, and that there are no "lawyers or engineers" who can alter how these protocols work for anyone's benefit.

"I am extremely proud of how the DeFi protocols have worked under pressure," Roszak said to complete his argument. He also pointed out that many institutional investors are joining DeFi, growing the ecosystem.

The regulation of the DeFi

Mary-Catherine Lader, COO of Uniswap Labs, developer of the largest decentralized exchange (DEX) on the Ethereum network, took the floor to express her opinion on the regulation of decentralized finance protocols.

From his point of view, there is more transparency and more information immediately available in DeFi. The downside is that regulators don't focus on discussing how this is an opportunity to gain greater investor protection.

“Better regulatory solutions can be found,” said Lader. However, he noted that regulators are "educating themselves" on these issues and is optimistic that good results will be achieved in the future.

Meanwhile, Ava Labs president John Wu said the fact that attempts are being made to regulate stablecoins indicates that DeFi has not been excluded from the regulatory spectrum. “Stable coins are DeFi's lubricant,” he said.

Finally, the rapporteurs expressed their views on the future of these protocols in the next year. Overall, everyone has foreseen a "big development" and many things that "will make the ecosystem feel safer".