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by warsheep
1593 days ago
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Isn't this a circular argument? The question was what "useful" things do these crypto solutions/companies provide, and your example is a product which allows regulated entities to invest in crypto. "Why is X valuable? Because X allows you to invest in... X." Also, in this specific example (Arc), is the solution even considered DeFi? There's a centralized list of whitelister entities and you can only participate if you're a customer of these entities. So they're like banks. |
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Whitelisted counterparties borrowing and lending to each other without having to trust a third party to intermediate, such as fedwire, swift, or dtcc, is clearly not a scam. It's a b2b product with at least 30 sizable informed and willing institutional participants. They could take their capital anywhere else in financial markets but choose to take it to Aave.
It's the same platform Aave offers anyone else on Ethereum, polygon, arbitrum, and other chains coming soon. The customers of the arc product have a regulatory compliance burden that arc solves for them but the tech is the same.