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Home Latest News Defi The founder of Compound Finance says that CeFi will embrace DeFi

The founder of Compound Finance says that CeFi will embrace DeFi

Compound Finance founder Robert Leshner is optimistic that CeFi will accept DeFi.

Robert Leshner, founder of Compound Finance, notes that CeFi will eventually accept DeFi and there are indications that it is already happening.

Speaking at the REDEFiNE TOMORROW—Global DeFi and Blockchain Virtual Summit in Bangkok, Thailand today, Leshner discussed his thoughts on CeFi/DeFi integration, the problems with Ethereum and the benefits of decentralized government.

Host Mukaya Panich, SCB 10X, Chief Venture and Investment Officer of Event Sponsors, asked Leshner about DeFi’s integration with traditional and centralized finance. As cointelegraph.com reported, He commented that lines will blur and centralized finance and businesses will start to use DeFi to power the back end in order to improve user experiences; “I’m really excited about seeing CeFi systems embracing DeFi back end operations,”

But Leshner noted that the challenge could no longer be up to Ethereum, the network on which most DeFi projects are developed. Ethereum had high composability, Leshner said, but was slow and costly to use and met its limits. An unfortunate effect of this, he said, would be that for smaller purchases and consumers it is no longer economically viable to use. “The more transactions, the more it will crowd out small balances,”

The chartered financial analyst cited two different advantages when asked on the upsides and downsides of decentralized governance such as those run by Compound. He said it meant that the protocol should not be maliciously ruined by any single person and that anyone could contribute to the joint upgrade of a protocol.

But this leads to slower governance decisions and improvements on the downside, he added, and the protocol can only evolve steadily over time. Leshner said that he compared it to Bitcoin, which he said was predictable and slow to develop. “Bitcoin is so successful because it doesn’t change much — everyone knows what to expect from it,”

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