Fixed interest rates to create DeFi 2point0 for institutions
Categories: Crypto News
Fixed interest ratesto create DeFi 2.0 for institutions
A newplatform that provides institutional-grade capital efficiency in decentralizedfinance (DeFi), said Infinity Exchange, a former executive of thebank, to promote institutional adoption for DeFi. Announced seeds of 4.2million. Infinity Exchange is led by Kevin Lepso, a former Morgan Stanleyexecutive who left the world of traditional finance with the possibilities thatDeFi offers to investors.
However, thefounders say that institutional investment is vital to building the nextdevelopment of DeFi 2.0 for a strong economic foundation. Lepsohighlights a major downside of the current DeFi 1.0 space, which isthe disconnect between floating rate markets and fixed rate markets. In suchcases, as in the current DeFi setup, capital cannot flow smoothly, causingthe markets to not work in tandem with each other.
Funds raisedfrom the latest round will go toward the development of Infinity's productofferings, which include fixed and floating rate markets as well as futures andspot trading markets, among other things. In providing elements of Trade defi,such as a complete financial market protocol with fixed and floating interestrates, it encourages large institutions to step into the unfamiliar.
it alsohelps to compensate for the existing shortcomings of the existing DeFiprotocol, as noted above. Lepso estimates that such tools are a keypart of the foundation for potential market growth "1000x compared totoday" for large-scale investors. This development comes as institutionalinvestors keep an eye on the space.Some surveys show that around 8% ofinstitutional investors believe that crypto will surpass traditional investingin the next ten years.