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DeFi is the new Fintech

True innovation in finance

Vadim Koleoshkin, Zerion


Sep 2020
Aggregation Theory

Source: stratechery.com
Newspaper Market Example

Suppliers Distributors Users

Writers
Content Makers Newspaper Readers

Newspaper

Newspaper
Newspaper Market Example

Suppliers Distributors Users

Writers
Content Makers Google Readers
Music Industry Example

Suppliers Distributors Users

Singer Label Listeners

Label

Label
Music Industry Example

Suppliers Distributors Users

Singer Spotify Listeners


Impact of the Internet

• Distribution costs ⬇
• Transaction costs ⬇
• Modularization of supply 🧩
Impact of the Internet

• Distribution costs ⬇
• Transaction costs ⬇
• Modularization of supply 🧩
• Ultimately, users become the first order priority for both
distributors and suppliers.
State of finance

Extremely localized
Consumers have to use only what is available / approved.

Heavily restricted
Entry barriers are very high, distribution costs are enormous.
Surprisingly, FinTech wasn’t that
transformational to date
DeFi is the Internet of finance
Decreases transaction and distribution costs
Modularizes supply of financial products
DeFi
Interoperable
Ability to exchange and make use of information
across systems

Programmable
Money is controlled by smart contracts (code)

Composable
Components fit perfectly together.
Stablecoins
“Stablecoins, today, are largely just
digitizing dollars”.

Lou Kerner
Stablecoins supply
USDT, USDC, BUSD, DAI, TUSD, PAX
$8B

Source: Coinmetrics
Acquiring some USDC literally feels like
“uploading” your dollars to the Internet
Developer-Friendly Finance
Projects bootstrapped with no funding

Curve InstaDapp
Uniswap

1inch TornadoCash
Over 100 DeFi
projects
built in a single month during
Hack Money Hackathon
Available financial instruments in DeFi

• Spot trading - Uniswap, Kyber, 0x, etc


• Money Market - Compound, Aave, Maker
• Margin Trading - DyDx
• ETFs - TokenSets, Balancer
• Options - Opyn
• Futures - Futureswap, OpiumExchange
• Fixed-income products - Yield Protocol
Available financial instruments in DeFi

• Spot trading - Uniswap, Kyber, 0x, etc


• Money Market - Compound, Aave, Maker
Most of these
• Margin Trading - DyDx products
• ETFs - TokenSets, Balancer developed in the
• Options - Opyn
last year!
• Futures - Futureswap, OpiumExchange
• Fixed-income products - Yield Protocol
Newly created DeFi tokens

Synthetix
iearn
Compound
Idle
Curve
Bancor
Uniswap
Tokenset
Balancer
Aave
DeFi Users over time
500,000

375,000

250,000

125,000

0
0 17 018 018 018 018 0 1 8
0 1 8 1 8 19
0 20 20 20 19 19
0 19
0 19
0 19 19 20
0 20 2 0 20 2 0 20
r 2 2 2 2 2 t 2 r 2 2
r ry ch ay 2 t 2 r 2 2
r ry 2 0 20 20 20
e a r y c h ay u l y u s e e n e u s e e r y r i l n e l y
m b r u a r M J g o b b u a a r M J u g b b u a u a A p J u J u
e b M u c t e m n M u e m e m n r
ec Fe A O e c Ja A p t o v J a Fe b
D D Se N
Source: duneanalytics.com
$0
$15,000,000
$30,000,000
$45,000,000
$60,000,000
20
1 7-
12
-1
9
20
18-
04
-0
4
20
18
-0
7-
19
20
18
-1
1-
02
20
19
-0
2-
16
20
19
-0
6-
02
20
19
DeFi Earnings

-0
9-
16
20
19
-1
2-
31
20
20
-0
4-
15
20
20
-0
7-
30
Source: Token Terminal
$14,789,439,259
Total Market Cap of DeFi assets
Sep 23rd, 2020

Source: defimarketcap.io
zerion.io
Thank you!

@rockfridrich

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