Day 2: DeFi and New Credit Primitives
DeFi takes advantage of the unique attributes of cryptocurrencies to create a real-time market for instant pricing and transfer of risk. At its core, credit is the act of buying and selling risk. DeFi markets allow participants to assess the same risk characteristics of traditional credit markets such as duration, collateralization level, and creditworthiness of borrowers, and to price available assets accordingly.
Digital Collateral: Putting Assets on Chain
To date, the majority of traditional lending has been focused on applying leverage to trading. However, this is quickly changing as more assets become “tokenized” and take on the attributes of crypto-assets, enabling more opportunities to obtain leverage by using these assets as collateral. In this session, we learn about the work already being done to move towards a future where everything can be collateral.
KEYNOTE | The Summer of DeFi
At the start of the year there was under $700M of AUM across the entire decentralized financial system. By the end of Q3, that number had exploded to over $11B. Four DeFi applications have more than $1B locked in their software alone. In this session, Kinjal Shah gives us an overview of the key forces that led to DeFi’s meteoric rise this summer.
- Kinjal Shah, Blockchain Capital
The Rise of On-Chain Credit Markets
DeFi protocols have injected themselves as possibly the next generation of financial intermediaries that will liberate the function of connecting lenders and borrowers from being shackled to traditional financial institutions. In this session, we learn more about what that means from the teams at the forefront of this budding sector. Real big brain energy in this one!
Insurance, Options, and Cover
It’s no secret that crypto markets have historically been perceived as risky. Part of the reason for this has been the lack of ability to hedge against a variety of risks (volatility, theft, technical bugs, etc.) due to immature market infrastructure. But that is being solved. In this discussion, we highlight the different types of insurance and derivatives products being built to help crypto investors protect themselves from risk.
CASE STUDY: Shuttle One
Our CoinShares Ventures portfolio company ShuttleOne provides an overview of their on-chain collateral product and trade financing solution, which combines the DeFi innovation of liquidity pools with CeFi solutions to provide innovative working capital products.