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27 September 2020

Framework’s Michael Anderson: ‘Ethereum is where DeFi will continue to be’

Framework’s Michael Anderson: ‘Ethereum is where DeFi will continue to be’


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Cointelegraph previously reported on Anderson’s philosophy of network capital, a change in investing mindset that is almost necessary in a space where decentralized protocols take the place of traditional companies and equity structures.

What do you think of SushiSwap’s goal of migrating liquidity away from Uniswap.

MA: I think what SushiSwap is telling the market is that Uniswap needs to implement incentives or some method of value capture other than just the fees that are being generated in the liquidity pools.

But I do think this should be a signal to Uniswap that if there are plans for a token with some value capture or incentive model for users or liquidity providers of Uniswap, it's time to bring them out.

What we did was we recapitalized Framework Labs with a deeper balance sheet to be able to go off and incubate new ideas to build products in-house and actually benefit from, trade on and use productively all the DeFi protocols that we're investing in.

MA: I think the big point here is that Chainlink is becoming the de facto security layer for DeFi.

As we expand into centralized finance — whether it's through traditional price feeds of equities, commodities and forex, and not just crypto price feeds, where it's a very circular nature of what we're building — Chainlink will become even more important at that point.

That’s, frankly, where we need to go as an industry, and if you’re a DeFi protocol that’s expanding into anything that's not crypto prices, the only path to get there is Chainlink?

And so what that has done is it has fostered this group of incredibly connected people who have been through these “wars” together?

Now, it’s kind of a race to build viable bridges from Ethereum to non-Ethereum DeFi protocols.

And even though Polkadot or even Cosmos or Substrate are building DeFi platforms and ecosystems themselves, it will really require a bridge to Ethereum to be real DeFi because that’s, you know, where the $500 billion in value in SushiSwap comes from.

Number two is that you also have an army of layer-two solutions for Ethereum that can very drastically solve these scalability issues.

And it's kind of a horse race at this point, where it bridges from Ethereum to these different ecosystems and then layer two

I still think that Ethereum is where DeFi will happen

I think that there will be new ways of creating DeFi that Ethereum wouldn't be able to, but I do think that Ethereum is where DeFi is going to continue to be.

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