CeFi plans to adopt DeFi protocol: Compound finance founder
- Businesses who are looking to improve user experience may adopt the DeFi protocol in the nearest future.
- Leshner says the Ethereum network may not be seen as the right platform for DeFi projects in the future.
- Upgradability of the Compound protocol is not left to a single entity, although it could be slow to evolve.
At the recently concluded REDeFiNE TOMORROW DeFi Summit in Bangkok, founder of Compound Finance Robert Leshner revealed that CeFi is looking to join the Decentralized Finance (DeFi) craze very soon. According to him, the current developments and changes in the company indicates it’s already happening.
Leshner spoke at length about the planned integration of DeFi into CeFi, the benefits of decentralized governance, as well as the current issues with Ethereum (ETH).
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Investment officer and chief venture of SCB 1-X Mukaya Panich, who is also the summit host, raised the topic about the integration of DeFi with centralized and traditional finance.
Leshner stated that very soon, businesses will want to improve user experiences, which will give room for more adoption of DeFi protocol to power their back end.
“I’m really excited about seeing CeFi systems embracing DeFi back end operations,” he reiterated.
Protocol’s upgradability not reserved for a single entity
Leshner also listed the benefits and downsides of decentralized governance like the one run by Compound (COMP). According to him, anyone can have an impact on the upgrade of the protocol. He also said no single entity can ruin the protocol maliciously.
On the other hand, one of the downsides is the fact that it can slow down governance decisions, which means it will be slow to evolve, unlike Bitcoin (BTC).
Ethereum may not provide the platform required
While addressing the virtual audience, Leshner also pointed out that the Ethereum blockchain on which most DeFi projects are built, may not be able to provide the necessary framework in the future.
He pointed out that even though the blockchain has high composability, it is expensive to use and not as fast as required. The slow nature of the network is particularly worrying, which has prompted others to develop a faster platform that can be equal to the task.
He also pointed out that the Ethereum network has almost reached its limitations, and a better and faster network is needed to withstand the DeFi projects. As a result, users with smaller transactions may no longer find It feasible to use.
“The more transactions, the more it will crowd out small balances,” he revealed.