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A look at DeFi’s environment for 2022

A look at DeFi’s environment for 2022

YouTuber Daniel Ramon joins Yahoo Finance Live for a discussion about the rise of decentralized finance. He discusses how cryptocurrency trading and blockchain discussions have reached mainstream audiences by 2021 and the outlook for 2022.

Video Transcript

One YouTuber I have enjoyed watching is Danku_R. We are happy to welcome him to the program to highlight some of the biggest explosions in 2021 as well as some things to look forward in 2022. Daniel Ramon joins us now to discuss DeFi.

Appreciate you coming on, man. Happy New Year. Thank you for being with us. I know you have great explanations and hands-on details. We can’t do that here. Talk to me about what you saw when you look back at the DeFi explosion in 2021. It’s so overwhelming that you have quit your job to do this full-time.

DANIEL RAMON Yeah. First of all, thank-you very much for the invitation. As you mentioned, there is always something new. It is often said that one week feels more like a whole year in this community. You can’t help but notice that new protocols and concepts are constantly being developed.

It was, for myself, a wild journey this year. I started my content creation journey this year, focusing on topics like crypto and DeFi. I also decided to quit the job. What I found out was that while it may seem complicated, there is a clear logic. It’s possible to look at the blockchain and see what is happening, which I find fascinating. People asked me if I would be interested in making a video about it because I created a flowchart for Twitter. Maybe you can help me. I said, “Well, I can try.” After six months of making YouTube explainer videos about cryptography and DeFi, I’m finally here.

Yes, you and I both, man. It’s been a lot explaining this year. I think we both got involved in a project earlier in this year, Terra. And now we’re digging into what they’re trying solve–a decentralized stablecoin. This network is enabling much more. We also look at Do Kwon who is the founder of Terraform Labs. He’s been tweeting about things to watch out for in 2022. I would love to hear your thoughts on some of the themes he has been highlighting when it comes to Web 3, decentralized–you know, all these protocols might unlock. What are you watching for next year?

DANIEL RAMONConcerning the Terra Luna ecosystem, there are a few protocols I believe are being implemented. Astroport, which was probably the largest DEX launch, just happened a few days ago. There are many protocols that will try to bring DeFi to the next stage next year. I might mention the PRISM protocol which tries to defract assets. If we are talking about a coin like Luna but also Ethereum, there is both a yield component and a primary part. A protocol like PRISM attempts to break it down, and then you can trade with the future yield of this currency. This is the wild stuff I’m looking forward to.

Then there are topics like Levana protocol. It stands for “Leverage Any Asset.” They are creating tokens that have inherent leverage. Instead of buying Luna, we can instead buy a token called 2x Luna which has leverage. This is what really excites me about DeFi–this next level of what crypto and blockchain technology can do.

Hey, it’s Brian here. I was curious about the semantics of this term. Because I think that the Jack Dorsey beef was a good example of the nuances surrounding the term Web 3. DeFi and Web 3 are interchangeable languages? Or do you see a distinction between them?

DANIEL RAMON Yeah, good question. It’s a difficult topic that we all have to continue exploring. I can tell that I know that crypto is a difficult topic to avoid and that I am trying to put more emphasis on DeFi and Web 3.0. Why? Because crypto often has the narrative of a speculative investment, right? People can trade about it. Crypto is more, in terms defi, right? You can also provide your assets. You can allow utility out there.

Web 3.0 for me is now– if we take a look at why it’s called 3.0. Web 1 was the first thing we could read on the Internet. 2.0 means we can create on social networks and so forth. The 3.0 comes from owning stuff. NFT is also useful in this area. It’s sometimes hard for me to understand why people focus so much on Bitcoin and other cryptocurrency. We are truly seeing something new. This ownership in Internet is something that will be really difficult to understand in 2022.

Yes, I think that you are hitting on some key points. Because there are many people who might have crypto, Coinbase is very well-known, and they might just want to own it and let it sit. As we’ve seen, there are many ways to earn returns on a lot you might have in your wallet. Coinbase can earn the yield for your wallet if you just leave it there. These things can be complicated. I would advise our viewers to look at this video if it is all flying over their heads. You can follow him on YouTube to see more of the nitty gritty.

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But, I wonder, what are you hoping to see? Are you expecting mainstream crypto– people who haven’t even tried it? Or do your thoughts point to a centralized institution that could help them navigate these steps? It’s not easy for mainstream.

DANIEL RAMON Yeah, great question. I believe we will see more applications trying simplify that, taking the advantage of DeFi to bring it to the people. They don’t need to use it.

That’s how I found Terra Luna as an ecosystem. Their purpose is to be able mint different stablecoins. It basically allows the mainstream to use crypto every day. Let’s be real, if you want to buy something in a grocery shopping center in Europe, you still need to use euros. I believe that there will be more apps to simplify the use of these stablecoins, or whatever it may be, to bring the yield opportunity for my mom. That’s what I tell my parents–that they can use it. They won’t use it, but I doubt it. There’s so much to learn. It’s something I love, right? I believe there is a lot to be learned about finance, but it’s unrealistic to expect everyone to spend hours trying to understand it.

I’m excited about apps like PayPal on blockchain. Here, you automatically earn 20% for just sitting around. You go to the grocery shop and then you want a hotdog. It costs you money. But the remainder of your account’s dollars is earning you yield. That’s what I believe crypto and DeFi can bring to everyone.

That’s it. You can also find Daniel’s videos on YouTube, under the channel Danku_R. Thank you again and a happy new year to all.

DANIEL RAMONThank you so much. Happy New Year.

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