An overview of the DeFi environment for 2022

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YouTuber Daniel Ramon joins Yahoo Finance Live to discuss the rise of decentralized finance as cryptocurrency and blockchain trading talks reach the general public in 2021, and the trend’s outlook for 2022.

Video transcript

– A YouTuber whose videos I enjoyed – very happy to welcome him to the schedule here, to spotlight some of those biggest blasters in 2021 and some things to look forward to in 2022 on his channel, Danku_R. Daniel Ramon is joining us now to discuss DeFi further.

Thank you for coming, man. Happy New Years Eve. Thank you for being here with us. You know, like I said, some really good explanations and some practicalities that we can’t really do here. But when you come back to DeFi’s explosion in 2021, tell me about what you saw. Because it’s been so hard that you’ve quit your job to do it full time now.

DANIEL RAMON: Yes. First of all, thank you very much for the invitation. And like you said, it’s true, every day something new is happening. It is also often said, in this environment, in this community, that a week looks like a year. Because if you look away, new protocols come in, new concepts appear.

And it was, for me, just also a crazy trip this year, like you said, right? I started my journey as a content creator this year, focusing on the topics of crypto and DeFi, and have now decided to quit my job as well. And I think what’s important, what I’ve discovered myself is that a lot of times it seems very complex, what happens there, but the logic behind is very simple, in terms of clear processes. . We can really look on the blockchain and see what’s going on there, and it’s so fascinating to me. And, well, people asked me, because I did a flowchart on Twitter and tried to explain things, would you like to make a video on that? Maybe you can explain more. And I said, well, I can try. And now I’m here, right, after six months of really making how-to videos on YouTube about crypto and DeFi.

The story continues

– Yeah, you and me both, man. I mean, that’s been a lot of explaining to do this year. And I guess we both got really hooked on a project earlier in the year which is, of course, Terra, and we dug into what they’re trying to solve – a decentralized stablecoin. But much more is being built on this network. And we watch Do Kwon, the founder of Terraform Labs – he tweeted about some things to watch out for in 2022. I’d be curious to hear your thoughts on maybe some of the themes he highlighted, regarding this Web 3, decentralized – you know, all of these protocols could unlock, when you look into the future. What are you keeping an eye on, I guess, for what to watch out for next year?

DANIEL RAMON: So, specifically about the Terra Luna ecosystem, I think there are a few protocols that are going to be brought online. We just saw one of the biggest, possibly, DEX launches just a few days ago, Astroport. But next year, there are more protocols coming up that are really trying to take DeFi to the next level. Maybe I can mention the PRISM protocol, which is a protocol that tries to defract assets. Like, when we talk about a coin like Luna, but also Ethereum, there is a yield part to that, but also a main part. And a protocol like PRISM then tries to break it, and then you can probably already trade with the future performance of that coin. And these are some wild stuff that I can’t wait to find out about.

Then we have topics like the Levana protocol. It’s basically an acronym for “Leverage Any Asset”. So they create tokens that have a leverage effect in themselves. So instead of buying Luna, we can buy a token called 2x Luna, which has leverage. And that’s what’s really fascinating to me, to DeFi – sort of a next level of what we can really do with crypto and blockchain technology.

– Hey, it’s Brian here. I wanted to ask about some sort of semantics here. Because I think the Jack Dorsey beef with Andreessen kind of highlighted the nuances around the term Web 3. I mean, when it comes to crypto, DeFi, Web 3, is it interchangeable between those languages, or do you see moral lines being between what is distinguished from one another?

DANIEL RAMON: Yeah, good question. I think it’s a very, very difficult subject that we’re all trying to find out, isn’t it? I can tell you that myself, I try not to talk too much about crypto anymore and really focus on DeFi and Web 3.0. Why? Because I see crypto often has this speculative asset narrative, doesn’t it, that people can trade on. But crypto is much more, in terms of DeFi, right? You can provide your assets. You can activate the utility there.

And to me, web 3.0 is now – if you look at why it’s called 3.0, right? So Web 1 was that we can read on the Internet. 2.0 is that we can create, whether on social networks or so on. And now the 3.0 just got some stuff. And that’s also where the NFT comes in, over there. And it’s sometimes for me, too, hard to understand why people really focus on bitcoin maximalism or so on. I think we are really here to see something new. This internet ownership is really something that will, probably, be really new to understand, too, in 2022, and for me, I think the biggest trend is to also understand what can really bring to the table.

– Yeah, I think you hit a lot of key points as well, because there are a lot of people who could have crypto – you know, Coinbase is very popular – and they could just own it and then let it sit there. But as we’ve sort of seen this year, there’s a lot you can do to earn returns on a lot of what you might be holding in this portfolio. In fact, Coinbase earns the return for you, basically, if you just let it sit there. But some of these things are complicated. So I would say to our viewers, listen, if this is all flying over your head, you can follow it on YouTube and find out more about the real stuff.

But I guess, you know, what are you waiting to see? Do you expect to see the mainstream – I guess, people who’ve never dipped a toe into crypto – do it down the road, or do you think there’s going to be something like a centralized institution that can perhaps help them through some of these stages? Because it’s not necessarily easy at the moment, for the general public.

DANIEL RAMON: Yeah, great question. I think we’ll see that there will be more apps trying to simplify this, really taking advantage of DeFi and bringing it to people. But they don’t really need to use it.

This is also how I found Terra Luna as an ecosystem, isn’t it? Their whole goal is to be able to mint different stablecoins, whether now, of course, the biggest one, the dollar, called UST, but you already have the euro. So what does it do, basically, it allows the general public to use crypto on a day-to-day basis, right? Because, let’s be honest, if I want to buy something at a grocery store here in Europe, I still have to use the euro, right? So I think there will be more apps that make it easier to use this kind of stablecoins or whatever it might be, to also provide a return opportunity for my mom, right? This is what I tell my parents, that they can use it. But I don’t think they’ll really use it themselves, because like you said, it’s so much to find out. I love it, right? So I think there is a lot to learn about finance, but I don’t think you can expect everyone to sit down for hours now trying to really figure this out.

I look forward to apps like PayPal on the blockchain, where, for example, with the power of the Anchor protocol on the Terra blockchain, you automatically earn, on your dollars, 20% for sitting down. You go to the grocery store, and then you just, I don’t know, want a hot dog. You pay for it. But the rest of the dollars in your account earns a return. I think this is the future that, really, crypto and DeFi can bring to all of us.

– Very well. And again, you can check out Daniel’s videos on YouTube under the channel name Danku_R. Thank you again and happy new year to you.

DANIEL RAMON: Thank you very much. Good year.

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