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Boris Alergant, the head of DeFi markets at Ripple Lab, said that the decentralized finance (DeFi) sector will need a "killer app" for consumers to reach a level where it can attract a large number of people.
Alergant said these things on Tuesday at a panel called "The Future of Decentralized Finance" at the Blockchain Futurist Conference in Toronto, Canada. Cointelegraph reporters were there to cover the event.
Kevin Hobbs, the CEO of Aventus Ventures, Lisa Loud, the co-founder and CEO of FLUIDEFI, and Ryan Berkin, the CEO and co-founder of Teller Finance, were also on the panel.
Most of the people on the panel thought that centralized financial institutions will eventually push DeFi into the mainstream. Alergant said that growth will probably come from a CeFi app that is easy to use and lets people know about DeFi services:
"For the average user, you tell your mom how to go out and stake on Aave or ETH [...] and this is a process. She doesn't know how to use MetaMask, but she still wants to find a way to get that yield. She wants to do business but doesn't know how."
"So I think institutional adoption is where it's going, and institutions are what will make that killer app for consumers that will really take crypto and DeFi to the next level."
Loud, co-founder and CEO of FLUIDEFI, had a similar point of view. He said that people eventually started using the internet even though they didn't understand the internet protocol suite, or TCP/IP:
"Don't we all use the internet?" We changed our way of thinking when we got the internet, but we don't know how to use TCP/IP. Right now, everyone who uses DeFi knows how to use the protocols. This is not a good model for adoption because it is not sustainable.
"If we look ahead two years, I think institutions will put more money into DeFi and companies will make it easier for people to use their products," she said.
The Ripple executive also said that the DeFi sector and the CeFi sector will soon work together to help customers with their financial needs.
"In the end, DeFi will add to and complete CeFi. In the end, it doesn't matter much if a trade is done through decentralized means in a centralized exchange. He said, "I just want the best damn execution."
The Blockchain Futurist Conference is the largest blockchain and cryptocurrency conference that happens every year in Toronto, Canada. It runs until Wednesday and is in its fifth year. Vitalik Buterin, who helped start Ethereum and spoke at Korea Blockchain Week just two days ago, is expected to speak at this year's event.
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