The IOHK CEO and founder of Cardano blockchain, Charles Hoskinson, appears quite obsessed with the Defi hype. Decentralized Finance (DeFi), an Ethereum based protocol, has taken the whole crypto ecosystem by surprise with its phenomenal growth in 2020. The Defi ecosystem, originally valued below $1 billion at the start of the year, has exploded upward, hitting a valuation of $15 billion.
Charles Hoskinson has not hidden his interest; during one of his recent AMA sessions, he revealed that he has become “very obsessed with DeFi lately.” He also went on to claim that this obsession has led to “hundreds of pages of reports, lots of interviews, and discussions.”
Hoskinson, during the AMA, said that the amount of development currently underway on the Cardano blockchain has led to several leaks about the upcoming projects. He cited one example as the recent association with Emrugo to develop a stablecoin, which the CEO believes will be better than MakerDAO. Hoskinson said:
“For example, we’ve partnered with Emrugo, and we’re right now working on the logistics of a stablecoin with them that we’re going to be building first on Ergo to verify everything works correctly, and then we’ll pull it over into Cardano, and this is going to be an algorithmic stablecoin. We think it’ll be significantly better than MakerDAO.”
The Growing Defi Craze
Charles Hoskinson is not the only one obsessing over the Defi hype; just like the ICO era, the defi hype has led to the launch of hundreds of defi tokens in the first half of 2020. Yearn Finance (YFI), a valueless token launched just a couple of months ago, is currently trading at over $30,000.
Binance, a leading crypto exchange, is also eyeing the defi space. In recent weeks, the exchange has listed two popular defi tokens, namely Wrapped Bitcoin (WBTC) and YFI token.
Hoskinson also said that the growing competition and the rising value of defi tokens are not as much of a challenge for Cardano and argues that it’s more of an opportunity. He explained:
“The reality is that the first-mover advantage is a disadvantage. Those network effects were ephemeral and often covered with mistakes and scars and explosions. You actually want to be in the imitator, the second-mover category for DeFi. And I think we’ll have a lot, lot more luck than the first-movers did in the space.”