In a network hosted by Kraken, “Perspectives on Definition: The Future of Ethereum,” panelists discussed the emergence of decentralized finance, its differentiators, and how to measure success.

The webinar took place on July 31st. Notable influencers from DeFi Anthony Sassano, co-founder of, Ryan Shan Adams, founder of Mythos Capital, Andrew Keys, managing partner of Dharma Capital and former CEO of ConsenSys, William Muger, Ethereum investor Early and former Advisor to Ethereum Corporation.

Pete Rizzo, editor-in-chief of Kraken, chaired the committee and often asked several provocative questions about the nature of the DeFi movement.

Metrics and decentralization
One of the questions was about the scale of total cost blocking, where he asked Rizzo why it was important and why it was useful.

Sasano gave a brief introduction, pointing out that it was first disseminated by the statistical website DefiPulse as a way to measure the amount of Ethereum locked in protocols, which means that it will not contribute to sales pressure.

“This is a very basic way of looking at it,” Sassano said, explaining that the scale was recently examined as this value can be easily deduced from networks.

One possible improvement would be the “cash flow in the chain” measurement, which measures the amount of money that passes through the protocols over a given period. He warned that the flushing trade could still be used to raise that standard, especially if the protocol does not require a fee. He concluded that “no matter what scale we try to distribute, it will be incomplete due to the way the systems are designed.”

Keys suggested another scale:

“The Gini coefficient is the most important to me. I want millions of people to get a $ 100 loan instead of a person who took out a $ 1 million loan. […] I think this is an important goal for ecosystem growth. so we no longer have […] 1% [against] 99% type of economy. ”

This raises an important issue with the current heavy nature of the DeFi ecosystem. According to DappRadar, for example, 30 portfolios make up more than 70% of the activity on platforms as a composite.

Keys also emphasized that the Gini coefficient is an important component of the decentralization measure, saying:

“We need to decentralize the user base. The less money the better. ”

However, Sasano noted that due to the current cost of charging Ethereum gas, it is impractical to start small in the DeFi room.

Source: CoinTelegraph