[Interview] What does Maker DAO think DeFi boom?
[Interview] Defi, an abbreviation for Decentralized Finance, is all the rage in the cryptocurrency market. New defi tokens are issued every day, and the amount of cryptocurrencies parked in them is setting new records. While defi has only recently become popular, there is one platform that was quick to make a mark, MakerDao. The company is No.1 in the defi industry, with more than one-billion-dollars of cryptocurrency deposited in its accounts. When it lost the top spot, it was quick to bounce back. It is the de facto central bank of defi. Join D met with Kim Jin-woo, Korea communications director for the Maker Foundation, to hear his thoughts on the recent defi boom, upcoming Ethereum 2.0 and MakerDao’s future. Q. Can you introduce yourself to the readers? I am the Korean community manager for the Maker Foundation, Kim Jin-woo. I am in charge of managing the Korean community and marketing here. Q. What kind of platform is MakerDao? The Maker protocol is a defi platform that issues the DAI and Maker Tokens, which is a governance token that helps keep DAI stable. Q. What are your thoughts on the view that MakerDao is the central bank for defi? The managing entity of a country is the government, and the central government has the power to issue currencies. Below the central bank is the first-tier and second-tier financial institutions. When the central bank changes the base rate, it affects other banks in the lower tier. The blockchain ecosystem works in a similar way. However, instead of a centralized government, it has a decentralized “protocol”, or a network. Bitcoin, Ethereum, and EOS are some examples. The network creates its own ecosystem and decides on internal rules through democracy. Let’s assume this “protocol” is the government. For it to exist, it needs cash. What takes the place of volatile ethereum coins are stable coins. In this case, we would need a sub-protocol that issues stable coins, and that is the Maker Protocol. There are some who consider us as the central bank in this ecosystem, since the interest rate for loans and deposits set by the Maker Protocol impacts other financial DApps, or Decentralized Applications. In fact, most defi DApps actually use DAI. However, since defi was originally introduced as a substitute for a bank, we try to avoid comparing ourselves to banks. Q. Any final words you would like to add? Defi is inherently adhesive and can bring out a lot of synergy through collaborations with other DApps. Instead of trying to develop our own payment and money transfer service, it could be faster and economically efficient to come up with such services through integration and networking of services. We hope to see more defi and DApp projects in Korea so that we can seek partnerships in the future. We are planning a defi event for August. We want to introduce more defi projects from overseas to local users and support the defi community here so it can grow bigger. For our online event, other companies such as Chainlink, Synthetix, Aave, Crypto.com and Kyber Network are expected to participate.