DeFi Protocols Escape from Regulators …


Defi: Blockchain’s Napster Moment

DeFi Protocols Escape from Regulators ...

DeFi Protocols Save From Regulators With Decentralization

  • The Two Largest DeFi Protocols Take A Step Towards Decentralization

  • Lawyers consider decentralization a prerequisite to placate regulators

  • Aave and Synthetix look to the future with confidence

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In the outgoing week, Aave and Synthetix have taken another step towards decentralizing their protocols. Will it be enough to evade regulatory attention??

DeFi Protocols Escape from Regulators ...

The creators of the third and fourth largest decentralized finance protocols, Synthetix and Aave, recently took further steps to transfer control over their networks to token holders. Decentralization is common in the ranks of decentralized finance projects, where users can decide the future of the network without the involvement of a centralized organization.

Also, with the help of decentralization, projects manage to remain in the shadow of regulators’ attention. As a rule, they operate without licenses – if no one controls the network, then no one bears responsibility to the authorities.

Lawyers say DeFi projects will ultimately spark the ire of regulators, who are starting to pay more attention to this growing segment. By the way, according to CoinGecko, the DeFi market capitalization has exceeded $ 8 billion. At the same time, a similar indicator, according to DeFi, Decentralized Finance (DeFi) is a financial services built on the basis of blockchain technology that offer users access to an open, efficient and … More Market Cap, amounted to $ 7.1 billion. $ 7.1 billion yesterday.

DeFi Protocols Escape from Regulators ...

Since the beginning of June, the volume of assets on Synthetix has quadrupled and now amounts to almost $ 500 million, while Aave has shown a nine-fold increase, reaching $ 600 million. Amid the explosive growth of the industry, Josh Garcia, partner at law firm Ketsal, warns:

Synthetic securities market developers play with fire.

However, the founders of Aave and Synthetix do not see any risks for their projects and the industry as a whole and are confident that its growth will no longer be stopped, even if regulators find a way to blame such projects for something..

And what the regulators

Meanwhile, regulators are starting to pay more and more attention to the decentralized finance market. For example, earlier this month, the US Securities and Exchange Commission and the CFTC attacked San Francisco-based Abra, preventing the offering of a tokenized version of stocks and fiat currencies..

Essentially, Synthetix offers a similar product. The only difference is that the users of this protocol trade among themselves, and the owners of the protocol do not take commissions, while Abra executes transactions on its platform on behalf of its clients.

Both projects claim that the decisions made this week have nothing to do with the situation around Abra, and these measures were being prepared long before the incident. Perhaps they really took these steps just in time. Be that as it may, the Abra case makes it clear that regulators are rapidly approaching this segment, and projects with insufficient decentralization may soon face problems..


DeFi Protocols Escape from Regulators ...

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