The Crypto Industry Needs a Crypto Capital Market Structure
The DeFi industry needs a solid market structure and systemic independence from current transactional systems.
 redefining the transaction systems that power many industries including including financial services. A growing number of naysayers are speaking out about recent events, which have exposed widespread mismanagement, ill-defined and poorly governed systems, and a general misrepresentation of the industry. Therefore, I want to take a systemic view of the industry to understand what led to this point, dissect failures, and be prescriptive about how we can learn from failures and build on successes.</p>
<p>Let's first understand the structure of the market and what it means. This will help shed light on the inefficiency of the current crypto market structure and allow me to make the case for a better defined structure aimed at systemic fairness, robust information flow for risk profiles and a compelling story of innovation to jump-start the industry and inspire confidence. .</p>
Understand the current structure of the financial market
<p>The modern structure of the financial market is essentially a chain of interconnected market players that help accumulate capital and build investment resources. These market participants have specific functions, such as asset custody, central accounting, liquidity provision, clearing and settlement. For reasons of function, capital constraints, or regulation, many of these entities are not vertically integrated, preventing collusion or one-sided investment decisions. Thus, different products may be governed by different markets, but the fundamental financial primitives remain universal. For example, commodities such as stocks, bonds, futures, options, and currencies all need to be traded, cleared, and settled, and other functions such as collateral, lending, and borrowing come together. follow.</p>
<p>Finance...</h2></div>
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Crypto
Jul 4, 2022
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The DeFi industry needs a solid market structure and systemic independence from current transactional systems.
 redefining the transaction systems that power many industries including including financial services. A growing number of naysayers are speaking out about recent events, which have exposed widespread mismanagement, ill-defined and poorly governed systems, and a general misrepresentation of the industry. Therefore, I want to take a systemic view of the industry to understand what led to this point, dissect failures, and be prescriptive about how we can learn from failures and build on successes.</p>
<p>Let's first understand the structure of the market and what it means. This will help shed light on the inefficiency of the current crypto market structure and allow me to make the case for a better defined structure aimed at systemic fairness, robust information flow for risk profiles and a compelling story of innovation to jump-start the industry and inspire confidence. .</p>
Understand the current structure of the financial market
<p>The modern structure of the financial market is essentially a chain of interconnected market players that help accumulate capital and build investment resources. These market participants have specific functions, such as asset custody, central accounting, liquidity provision, clearing and settlement. For reasons of function, capital constraints, or regulation, many of these entities are not vertically integrated, preventing collusion or one-sided investment decisions. Thus, different products may be governed by different markets, but the fundamental financial primitives remain universal. For example, commodities such as stocks, bonds, futures, options, and currencies all need to be traded, cleared, and settled, and other functions such as collateral, lending, and borrowing come together. follow.</p>
<p>Finance...
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