Want DeFi to grow 100x from here? The answer is to be boring! 

/1 Want DeFi to grow 100x from here? The answer is to be boring! That means DeFi needs to move away from speculation and into boring, everyday financial activity. Not NFT’s, gaming, or web3 social. Those are all great for crypto. But they won’t help DeFi. Here’s why 🧵
2/ Let’s just look at market sizes for a sec: -Global e-commerce companies made $2.27T in revenue last year -The US alone issued $1.3T of bonds + made $8.5T of salary payments last year -Equity funds have seen ~$1T of funding in the last decade We need all of that action on DeFi.
3/ NFT creator revenue last year, by contrast, was $3.9B. Video games as an entire industry (not crypto gaming) was around $100B in revenue last year. Nothing to sneeze at, but orders of magnitude less than boring, everyday finance.
4/ And of course any additional DeFi revenue generated through these economies (eg. borrowing against NFTs, or loans to people playing the games in exchange for future revenue) will most likely be an even smaller fraction of this TAM pie.
5/ DeFi itself currently has a ~$4B revenue run rate (per @TokenTerminal). So getting slices of the above markets just won’t move the needle that much. We need to be going after the HUGE opportunities. That means capturing the biggest opportunity: the regular, boring economy.
6/ The internet grew in the same way. Here’s two small examples. Ad spending (huge source of internet revenue) did not only happen to “internet native” activities. It stole market share from TV, radio, newspapers, etc. because it offered a better way to solve the same problem.
7/ E-commerce too. The internet didn’t just sell virtual stickers and blog subscriptions. It went after commerce. People literally don’t go to stores as much.
8/ So the challenge in front of DeFi is the same faced by every other technology that has aimed to disrupt the status quo. It must solve the same old problems, but better. Luckily I’m quite confident that will happen.
9/ Bezos once said (I’m paraphrasing) “I’m often asked what will change over the next 10 years. But the more interesting question is what *won’t* change. Because you can build a business strategy around what’s stable in time”
10/ You can be quite sure about people’s needs in finance. They want more liquidity, better rates, more opportunities to invest in, faster settlement, and more flexibility with how they use their money. These are timeless and universal. DeFi will be better on every single one.
11/ DeFi offers better liquidity options, instant settlement, a vast array of opportunities to invest in, on a permissionless and interoperable global network. Compare that to holding pieces of paper in the fragmented, permissioned system we have today. Who’s going to win?
12/ DeFi has the tools, tech + the world’s smartest people. Let’s aim high. We can take on the world’s biggest, most boring markets. Not by snuffing them with regulation and fear. We’re better than our foes. Simply by offering people a better way to do what they’re already doing.

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