I want to see a fully formed financial system built on crypto rails, and a fully formed financial system requires credit. Since the first time I encountered the idea of borrowing and lending on-chain, originally through Dharma’s lending protocol I became obsessed with the prospect of getting to a state where we see credit extended on-chain, meaning that we’d get to loans which are undercollateralized. Dharma, Maker, Compound, all of these early iterations of borrowing on chain seemed really cool but back then I was very dismissive because the loans were always over collateralized. It seemed like something that was…

Talk about any startup long enough and eventually the question will arise:

“…and why can’t [incumbent firm] do this themselves and eat their lunch?”

If you are thinking of starting a company, funding one, or joining one, I’d be willing to bet you will inevitably face this question yourself. What then? Should you admit defeat and give up on your ambition then and there? You could easily make the case that the incumbent will be a fast follower once the upstart proves out its business model and quickly proceed to supplant them, and in most cases, you’d be right.


Disclaimer: this piece is not intended to be an in-depth exploration of the topic at hand, rather a quick stream of thoughts that will hopefully stimulate broader discussion. I expect holes to be poked in my arguments, and have no illusions as to my ability to predict the course of future events.

In the cryptosphere, we like to spend some of our time thinking about the answer to the questions ‘When, where, and how will we see adoption of digital currencies?’, …

Jon Kol

Some dude. Likes to think out loud. Investing @ Galaxy

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