1) This is my fifth and final post about The State of DeFi: PROJECT SERUM
2) As before: a) Some others know DeFi better than I b) I don’t know the future, I’m just guessing c) Not investment advice d) In the end value is in the eye of the beholder. It doesn’t matter what I think, it matters what you all think.
3) DeFi is hot, and exciting, and messy. And it’s filled with potential: the potential to build an entire financial ecosystem without relying on trust or censorship. And it’s made a lot of headlines this month. But the actual products have a long way to go.
4) Decentralized products have centralized oracles sprouting up at the crucial step. Stablecoins either rely on a single bank account or aren’t really fungible with a dollar. The space has dozens of viable blockchains each reinventing the wheel and isolated.
5) And above all, it’s slow and expensive. The core network has 7 transactions per second to share between every single project; it takes dollars and minutes to take even simple actions. So there are no orderbooks, or risk engines, or complex, computationally intensive products.
6) Anyone who’s used existing protocols has felt this: the frustration of waiting 5 minutes for a transaction before learning it failed because of something that happened after you sent it; seeing a estimated gas cost of $100 during peak times. It’s really holding back the space.