Pantera Capital In A Letter 2023: DeFi Will Drive the Next Crypto Bull Market

Key Points: Joey Krug, CIO believes that decentralized finance (DeFi), will be the foundation for the next bull markets.
DeFi was still intact in 2022 despite lower rates for top protocols.
Pantera Capital, a crypto hedge-fund, believes decentralized finance (DeFi), which is one sector of the digital asset market, will be the driving force behind next bull market cycle.
It is interesting to note that decentralized finance protocols which lent money to largely unknown counterparts didn’t collapse. There are a few levels to the reason DeFi protocols have been successful. These protocols (e.g. Maker, Compound, and Aave) require people to post collateral and enforce strict risk controls.

Ironically, those same controls that central entities say are ‘too tight, just too inefficient’ are actually the ones that these risk controls are. They would tell us that these protocols couldn’t monitor risk as well as we do. One of my closest friends shared with me the good terms that one of these companies offered him. The company was taking on an absurd amount of blow-up risk. I said something along the lines that ‘the next cycle would likely blow up because of these centralized lender entities. They’re making pennies in front a steamroller.
Krug claims that DeFi’s code, which regulates DeFi protocols, has proven to be superior than humans who rely on arbitrary reasoning in order to persuade users to trust them. DeFi must address three main concerns to be successful. This website provides general market commentary but does not constitute investment advice. We encourage you to do your own research before investing.Join us to keep track of news: NewsTags: # Pantera capital#DeFiDeFiDeFi ProtocolDeFi protocolsDeFispantera capital