Cardano Community has been of late discussing the future of DeFi. The community have been discussing a lot of stuff.
Shruti Appiah, Senior Product Manager at Marlow, IOHK has been speaking about the future of decentralized finance.
What is Decentralized Finance today? Decentralized Exchanges (DEX) & AMMs Lending & Credit Stablecoins Oracles & Prediction Markets Asset fractionalization (NFTs) Margin trading & leverage Balancing Systems.
What is the Future of DeFi? To be successful, users need to be able to understand a smart contract. Platform: – Peer-to-peer contracts (Marlowe) – Consolidation – away from fragmented experience – User experience – the path to user adoption.
What is the Future of DeFi? Product: – Modularity – Composability Interoperability: – Asset transfer across chains, bridges, lending, Omnichain DEX – Deep Interoperability; cross-chain contracts, standardization (noticing a pattern?)
What is the Future of DeFi? Scalability & optimization: – True State – Synthetic State This approach improves performance and cost for dApps.
What is the Future of DeFi? Stability – Core functions of money – Stablecoins (useful for lending, credit) Costs – (Currently) Quite high when networks are congested – (Currently) Vary heavily over time – Insurance services.
Are Smart Contracts just for Finance? No, they are also incredibly useful in the Legal environment and will significantly reduce the cost and time taken to process a contract.
What is the Marlowe suite of products? High level, 3 prongs: 1) Developers (Marlowe Playground; for testing) 2) End users (Marlowe Run; Smart Contract Templates) 3) Enterprise (Stay tuned).
How will lending work? Cardano has a native token, but supports multiple other tokens. It can be done in any of those.
IOHK points to: Who can use Marlowe? Marlowe is a platform for decentralized finance (DeFi) that supports direct, peer-to-peer lending, contracts for difference (CFD), and other similar instruments. Financial institutions can use it to develop and deploy custom instruments for their customers and clients, for example.
For those who are new to Marlow, it is a new language that brings decentralized finance to the Cardano Ecosystem. It is a domain-specific language (DSL), which is only about financial contracts, therefore not smart contracts. Financial contracts differ from smart contracts and general-purpose blockchain languages like Solidity and Bitcoin Script.