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"Institutions Will 10x Crypto" Chainlink and AAVE Founders Explain Why "DeFi Will Win!"
Altcoin Dailyยท 2025-11-09 20:33
DeFi Adoption & Institutional Investment - Institutions hold the majority of capital, limiting retail capital's ability to significantly scale DeFi [1][6] - Institutional adoption is crucial for DeFi to reach tens of trillions in value, requiring clear, simple adoption methods and compelling reasons [2][6] - Institutions are poised to inject substantial capital into crypto and DeFi, potentially 10x the space [3] - DeFi's transparency offers superior risk management compared to traditional systems, attracting retail, fintech, and institutional communities with better yield [6][7] - Institutions are distributors of DeFi, and traditional financial rails will be replaced by blockchain rails, stablecoins, and embedded DeFi [11][12] A Horizon & Tokenized Assets - A Horizon enables institutions to tokenize real-world assets and borrow stablecoins [13] - A Horizon facilitates the use of tokenized assets as collateral (money market funds, tokenized credit, equities, ETFs, debts) to borrow stablecoins [15] - Tokenizing assets alone isn't innovative; utility comes from using them as collateral, enabling exchange, and fostering a developer ecosystem for structured products [16] - A Horizon's growth reached $500 million in markets within two months of launch, focusing on off-chain liquid assets [29] Risk Management & Oracles - Chainlink and A are essential for financial institutions, with A setting contract standards and Chainlink providing data inputs and compliance oracles [20] - DeFi separates financial institutions into specialized groups with high standards for contracts and oracles, ensuring transparency and reliability [21][22] - Oracles are viewed as strategies for pricing assets, considering factors like price source scarcity and implementing protection measures [23][24] - Chainlink is enabling institutions to move capital on-chain for tokenized asset purchases and DeFi protocol participation [31]