Let me give you a summary because this is a very interesting conversation.
Click here to watch the video
I listened again and transcribed her main points - Please watch its only 20:43
This conversation is about Uniswap talking with consumer finance companies and users.
"What is uniswap? A protocol that powers token transactions on web3
Assumptions;
1 All value will be tokenized
- real estate tokenized
- stock securities
- nfts, commodities,
- currencies will be tokenized
Better at keeping track at some things, maybe not other things.
2 Protocols will eat everything
- UNISWAP outperformed coinbase by volume some days
- 25 employees vs 1200, protocols just runs
This is true and fintech companies are starting to see the magic.
3 Traditional consumer finance applications must integrate defi to stay alive. Users want to join the ecosystem and consumer fintech businesses are starting to come onboard to give consumers what they want.
Challenges to adoption:
This has never been done before. Uniswap labs has run a protocol
- everyone could die at uniswap and it will keep running
Usually software suites have backend systems but that's not how the blockchain works. There is a learning curve for everyone to adopt.
Nobody knows what KYC means! The elephant in the room. Defi doesnt do it at all. Different organizations have to comply with various levels of compliance, so there is a spectrum and no single standard. Uniswap is talking to users and companies to find out what the minimum barrier to entry is.
They are talking with what is needed to come up with solutions.
Consumer FiTech is scared of transacting on chain.
There is no dispute resolution center to withdrawl on chain transactions. Educating new users about the implications about permanence and responsibility if they are going to allow on chain transactions.
Paxos is a middle solution that some use but many want to stay away from on chain transactions. That means there is a huge opportunity for middleware solutions.
Why they are going to integrate uniswap anyways,
they have to , to stay relevant with their userbase. this generation of investors have a different idea about how they should and can be spending their money.
traditional market makers are not enough.
market makers have a daily limit. settlement practices are different with different rules. they need deeper pools of liqudity that has finality, that doesnt have to settle in an archaic way.
could possibly use uniswap to automatically settle a trade when it happens, push an order through the mm at the end of day, but instant execution on uniswap.
settlement is overly complex and is costing them money.
uniswap will help them reduce fees and costs.
They need 100% uptime.
The stock market goes down, trading halts, exchanges go offline, but consumer applications need 100% uptime.
bitcoin trading on defi is not great- needs more BTC liquidity for consumer finance. This is a place where someone could help find solutions.
Middleware partnerships
-Fireblocks
-Talos
-Paxos
Experimenting with KYC solutions
- what are the hurdles, how to get over them
- what solutions can be built
Developing strong legal narratives to help with compliance discussions."
Whether you read, watched the video or both, please leave your takeaways below.
How do you think UNISWAP integration will change consumer finance?