Billionaire investor and cohost of the television series Shark Tank, Mark Cuban has explained his fascination with decentralized finance in an editorial published to his blog.
The entrepreneur has been involved in the crypto space for quite some time, and he now sees massive potential in the DeFi economy, going so far as to term it as the next great growth engine.
In his opinion piece titled The Brilliance of Yield Farming, Liquidity Providing and Valuing Crypto Projects, he attempts to explain the decentralized finance universe from his point of view, stressing that yield farming via staking and liquidity providing are the core features of DeFi as far as economy is concerned.
Cuban detailed the benefits of these operations by explaining how finance companies need financial depth to offer specific services. They need to be able to afford to hedge the risk of pricing volatility between currencies, if they want to do this business with scale across the world.
And this can be very expensive and risky, but not for DeFi exchanges:
“What makes running a Defi exchange so much better than a traditional centralized financial business of this and any kind is that rather than the owners of the business, investors and their creditors putting up capital for all the transactions to take place, Liquidity Providers (LPs) do it for them.”
The billionaire also discussed his interest in certain projects like Polygon and its native token MATIC, as well as the fact that he is now focused on DeFi innovation and decentralized exchange platforms.
Mark Cuban reminisced about when he gave a Zoom speech during the pandemic, talking about how he sees the world changing after what happened in 2020 and 2021. Companies across the globe will transform, and he envisions DeFi and crypto firms being an important part of this transformation.
Wise words from a wise man.
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