By Darcy Allen

The blockchain world is currently obsessed with defi. In the past few months, billions in digital value have been staked, swapped and farmed in radical experiments using liquidity pools, automatic market makers and decentralised exchanges.

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Who else is excited about the future of the financial system? (Flickr Creative Commons | Zeyus Media)

Defi is easily belittled as a collection of scam-riddled projects powered by magic internet money. Perhaps. But more optimistically defi is a spectacle of entrepreneurial discovery.

These wildly fresh experiments are the infrastructure of a distributed digital economy. This infrastructure is being built right now, from scratch, by a bunch of internet entrepreneurs buying, selling and farming digital vegetables.

Defi as a discovery process

In the past decade institutional technologies such as blockchain have helped us coordinate our economic and social activities in new ways. We can now protect, enforce and coordinate property rights, contracts and organization through decentralised networks. Blockchains are being deployed in supply chains, digital identity and asset registries. …

By the team at the RMIT Blockchain Innovation Hub

The financial sector exists solely to smooth economic activity and trade. It is the network of organisations, markets, rules, and services that move capital around the global economy so it can be deployed to the most profitable use.

It has evolved as modern capitalism has evolved, spreading with the development of property rights and open markets. It has grown as firms and trade networks became globalised, and supercharged as the global economy became digitised.

Decentralised finance (defi) is trying to do all that.

By Chris Berg, Sinclair Davidson and Jason Potts

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Since 2017 we (along with our colleague Joe Clark) have been working with Agoric, an innovative and exciting smart contract team, who are about to launch a token economy model we helped design.

At the RMIT Blockchain Innovation Hub we’ve long been thinking about how blockchain can drive markets deeper into firms, resolving the electronic markets hypothesis and giving us new opportunities for outsourcing corporate vertical integration.

What we’ve discovered from working with the Agoric team is the possibilities of driving markets down into machines. Mark Miller’s groundbreaking work with Eric Drexler explored how property rights and market exchange can be used within computational systems. …

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Cryptoeconomics

Posts by Darcy WE Allen, Chris Berg, Sinclair Davidson, Aaron Lane, Jason Potts and others

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