PinnedWhy real world asset financing is the next frontier of growth for Decentralised Finance (DeFi)At the time of writing, the Total Value Locked (TVL) in DeFi across all chains and sectors is $78 Billion[1] which is a very small percentage (0.0032%) of the global wealth (valued at $1.3 …Defi5 min readDefi5 min read
PinnedBuilding DeFi-CeFi rails for bridging the MSME credit gapDeveloping world MSMEs face a credit gap of USD 5 tn per World Bank estimates. This gap exists over and above ~USD 3.7 Tn credit that has been fulfilled by formal lending institutions. Technology -led new business models adopted by FinTechs, neo banks etc. …Defi3 min readDefi3 min read
Nov 21, 2022Game Theory in TokenomicsTokenomics play an important role in incentive alignments. A well-designed tokenomics model can incentivize players even in a non-cooperative situation to cooperate and arrive at the most optimal outcome. On the other hand, disincentives help in regulating user behavior and actions without compromising on decentralization. …Defi3 min readDefi3 min read
Oct 7, 2022Game Theory in DeFi“After all, any event — given the external conditions and the participants in the situation (provided the latter are acting of their own free will) — may be regarded as a game of strategy if one looks at the effect it has on the participants.” — John von Neumann, On…Defi7 min readDefi7 min read
Sep 7, 2022Why stablecoins are an important primitive to mainstream DeFi?What is a stablecoin ? In simple terms, a stablecoin is a cryptocurrency which derives its value from a referenced asset. Why do we need a stable cryptocurrency? Prices of cryptocurrency are highly unpredictable with wild fluctuations. This makes it hard for people to use it . …Defi8 min readDefi8 min read
Aug 3, 2022A Systematic Approach To Risk Assessment In Defi Protocols (Part 2 of 2: Non-Technical risks)Risk management firm Elliptic says De-Fi users lost $12 billion to hacks and scams over the last couple of years alone.[1] These scams and hacks can be due to technical and non-technical risks. We wrote about Technical Risks in DeFi here in Part 1 of this article. This Part 2…Defi6 min readDefi6 min read
Jul 28, 2022A Systematic Approach To Risk Assessment In Defi Protocols (Part 1 of 2)DeFi or Decentralised Finance is a term for a class of financial services that operate in a decentralised fashion, attracting investors to participate using highly incentivized mechanisms. The De-Fi market is exploding with the potential to revolutionize finance, investment patterns, businesses and asset acquirement. However, it carries risks of varying…Defi8 min readDefi8 min read
Feb 6, 2022Small businesses and the “access to formal credit” conundrumSrinivasan ,40, is the proprietor of Udit traders, a kirana store in the town of Haveri, a small town 300 km from the tech city of Bengaluru. Srinivasan started Udit traders when he quit his job as a sales man in an FMCG company ten years back. His shop sells…Small Business4 min readSmall Business4 min read
