dailyhodl.com
Synthetix (SNX) founder Kain Warwick thinks it is nearly impossible for decentralized finance (DeFi) projects to avoid regulatory risk in the US.
In July, Warwick founded Infinex, a decentralized perpetual exchange that uses Synthetix for its liquidity.
He acknowledges that there is regulatory risk associated with the project, arguing that some US regulators are “ignoring the benefits of transparent and open infrastructure powering financial markets.”
“[In my opinion], US regulatory agencies have completely lost sight of their mandate, and it’s now going to be up to the courts to sort this all out.
The stance of regulators in the US is utterly antithetical to their mandate. DeFi is built on a technology that increases market transparency and efficiency, it is not perfect, but it is very new and should be given an opportunity to prove itself in the market.
Certainly, it has more potential than the current system of a bunch of black boxes built on 50-year-old legacy code that is barely kept in line by millions of pages of rules and regulations.”
Warwick says he built Infinex because he noticed an inefficiency in the Synthetix ecosystem.
“And the best part is no one can stop me. The same goes for other protocols, don’t like the Aave UX (user experience), go and fix it and if you are right, you will be able to charge fees for solving this inefficiency.
This is the power of DeFi, incumbents can be disrupted from both within and without. This is impossible in TradFi (traditional finance) and innovation suffers because of it.”
Generated Image: Midjourney