You can’t stop the children of degeneration.

Before DeFi was nothing but a tingle in Vitalik’s ballsack, the blockchain was envisaged as a ‘peer-to-peer financial system’, born out of rejection for the reckless state-sponsored gambling by finance scions in glass skyscrapers, and a distaste for a central banking system that held all the cards.

Yet humanity can’t, in essence, help itself. And, in many ways, it shouldn’t. Despite possible disaster, money that can move freely and seamlessly between different markets – which can target new opportunities quickly and easily, is the principal driver behind the explosion of wealth and technology of the last few centuries.

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Degens drive growth. We should encourage ‘reckless’ lending, because that is how things get done. The key is to let as many people into the party as possible, not let a few powerful institutions decide the fate of everyone.

Before affordable credit, everyone was mostly consigned to their lot in life – and nothing ever got done easily. It was the creation of more open credit markets that, in a large part, catapulted the British and Dutch empires to world hegemony – a legacy that both countries still arguably live off today.

Due to financial innovation in the 18th century, sourcing finance for your expedition to the Indies was no longer a case of going cap in hand to the King or Queen and begging for their benediction (all the while giving them 97% of the return) – it was a matter of choice, a matter of ambition, and a matter of offering a good yield to your backers – usually taken from a small slice of upper class merchant society.

DeFi is financial democracy. It’s the next step in human history. No longer do you have to go cap in hand to the bank, begging for your computer to say yes (and signing away your life in the meantime). With DeFi, you can borrow from anyone and everyone. Anyone can be the bank, and everyone is the house.

The permissionless, trustless, inviolable blockchain has created a substrate upon which all future financial activity can thrive, and right now, there a builders in every corner of the globe finessing the technology and creating the smooth, intuitive access to it that will allow for the creation of a new, open financial system.

DeFi is moving through the gears. The vast explosion of TVL that followed the DeFi summer of 2019 led many to believe the utopia was already here. In truth, it never was. Blockchain and DeFi were too green. Focus on yield instead of sustainability (oh human greed, never changes) was too pronounced, and too many bad actors entered the space to profit off the hype, while too many builders didn’t understand what they were doing – the same way countless expeditions used to sink in the vast ocean, taking investors’ collateral down with them. Yet technology keeps improving, security becomes more tight, and use-cases more obvious. We just need to keep going until we hit top gear.

Gearbox, a two-sided lending marketplace for passive investors and ninja degens, understands the arc of history. Relentlessly improved since inception, it continues to speed its way through the evolution of DeFi – but knows there are many tight corners ahead to navigate. Its collateral base, oracle management, and risk profile are all assiduously governed by its active DAO which recently – for example – divested 50% of its USDC holdings due to recent market events. Its V2, after eight months, has delivered an average of 20.5% APY on its Lido Finance strategy alone, and V3 is just around the corner. So shift your investments into top gear with a protocol who knows the real race has only just begun.

None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website.