- DeFi enthusiasts explore the possibilities of permissioned DeFi.
- Founder of Aave, CEO of Fireblocks, and CEO of Galaxy Digitals speak on a webinar.
- They discuss the need for whitelisted and blacklisted wallet addresses.
Founders and CEOs from the field of crypto came together for a webinar — ‘Next Steps for Institutional DeFi’ to share their vision for a decentralized future. In particular, the three experts got together to discuss the potential of decentralized finance (DeFi).
First, the Founder of Aave, Stani Kulechov shares his idea on adopting permissioned DeFi. He says banks and other financial entities can benefit from initiating automatic lending. He says to do this, a detailed system of blacklisted and whitelisted wallet addresses will be needed.
Most financial entities are already aware of the power of DeFi. More so, they are aware of the underlying threat it poses to the current way of business. However, fans of DeFi and its potential are pushing for such institutes to open their eyes and benefit from its capabilities.
For instance, the firms can implement know-your-customer (KYC) to cross-check and identify users within the pseudonymous space of lending pools. Another factor that’ll help these firms is that the KYC data can also be used for automated marketing.
Specifically, the ‘Next Steps for Institutional DeFi’, Kulechov adds,
We believe that creating this kind of ability of whitelisting and blacklisting addresses regarding this institutional market makes it easier to scale in institutions, because it lowers the risk in general.
Moreover, Kulechov says that permissionless DeFi will always be present. However, soon there will be DeFi protocols that will be layered or tailored for private and whitelisted pools and markets. At the moment, Fireblock and Aave are exploring these possibilities.
The CEO of Fireblocks — Michael Shaulov says that they can already operate within a network with known participants. Next, they will be able to validate and vet them onto the network to create a gated community of sorts.
Finally, the CEO of Galaxy Digital — Michael Novogratz, highlights two possible options for the next phase. He calls the first option the ‘walled garden’. This would be what Aave and Fireblocks are attempting. The other option he terms ‘chain surveillance’. Here, the platform can figure out where the transactions are coming from.