You may have heard about some wild volatility in the markets today and we would like to address those.
No, DeZy is not impacted by the events related to UST or the Terra / Luna ecosystem. Funds are safe.
We only build on top of XSGD and USDC.
We are not exposed to other stablecoins nor are we exposed to other crypto assets with fluctuating values. While we monitor the market as private participants and as DeZy, we feel validated today in the risk mitigated approach we have taken with respect to structural decisions at DeZy and the yield sources we've chosen.
With that out of the way, let us dive deeper …
Good and evil.
Black and white.
Safe and not safe.
So much of our public discourse across so many different topics is often painted in a Superman versus Lex Luther kind of framing without appreciating that most things in the world are actually painted in grey.
This however is not a discussion around public discourse broadly but rather around recent events in crypto and how DeZy fits into it all.
Today and over the coming days, you will likely read about the chaos that has occurred within the crypto space in relation to UST. While most of the discussions will likely frame it in that Superman versus Lex Luther narrative, it is a highly nuanced discussion that crypto natives are engaged in and a discussion that must be had.
Can a stablecoin be decentralised? Can it be collateralised with core crypto assets? What did we actually create in terms of UST and how could this experiment have been structured differently? Important discussions but not the point we wish to make today.
Crypto is an industry still evolving. An industry engaged in various experiments that stand the potential to dramatically impact all of our lives across finance and countless other industries. Arguably we must engage in these experiments because there is so much room to improve industries and our lives that it would be a disservice to our future not to push the envelope of what is possible.
We can't, however, allow ourselves to engage in these experiments irresponsibly.
But what if we could simplify all of these things for the non-crypto natives? For the mass market? What if?
Well, what if some of the companies approaching “simplicity” are doing so in an egregious, dangerous and irresponsible manner?
The crypto industry will learn from recent events and we will build better products. That's what this industry has always done.
1) The mass-market deserves risk mitigation. Building on top of one protocol is undeniably uninventive and undeniably irresponsible.
2) Offering the highest yield possible is great but offering a sustainable yield is far better. Risk mitigation above all.
3) Crypto natives continue to engage in ongoing and important experimentation. Our industry is not fully developed and the mass market is not interested in nor ready for half-baked ideas (DAOs) before self-proclaimed natives can display these ideas functioning in a coherent manner.
DeFi can be made safe and those presenting the best of DeFi to the mass market while disregarding underlying best practices are doing customers and the industry a disservice.
We as an industry need to look at our customers in the face knowing we are giving them the best.
We as an industry need to stand in front of regulators and say confidently that we are the ones doing things the right way. We are the ones they should be speaking to. We are the ones who understand this technology.
DeZy has been built with risk mitigation in mind across various DeFi protocols, with insurance built in and denominated in fiat. We are accessible to the very users that we as an industry claim to want to help.
At DeZy we will continue to bring the best of DeFi to the mass market in a way they are comfortable with and with customer protection in mind. Always.
As you know, DeZy offers you up to 5.65% with 0 fees and 0 lock in. We do this by offering you risk managed and fully insured exposure to DeFi protocols.
Decentralized finance is an emerging field with fluid regulations. Learn more about the risks involved.