Navigating DeFi And Institutional Crypto Adoption: Key Insights From Hack Seasons Seoul’s ‘Bull Market Survivors’ Panel
On September twenty fourth, Hack Seasons hosted the Opportunity Mixer in Seoul, bringing collectively founders, traders, and members of the crypto group to debate the important thing tendencies influencing the Web3 and cryptocurrency panorama at present. One of the featured panel discussions, titled “Bull Market Survivors,” was moderated by Will, Growth Partner at Credit Scend, and included audio system similar to Tika, Head of Global International Business Development at KuCoin; Wilson, CEO of Honeypot Finance; Kris Lai, Co-Founder and CEO of Scallop; Hannah, Global Partnerships at beraBTC; and Kenny Li, Founder of Manta Network. The session targeted on methods for navigating risky markets and insights into constructing resilient, long-lasting tasks.
The dialogue started by addressing the problem of TVL and fragmented liquidity in decentralized finance (DeFi), and the way sure firms are tackling issues that others can not. Wilson from Honeypot defined that TVL is a big challenge as a result of DeFi largely depends on output-based fashions, which require liquidity to be actively used on decentralized exchanges. If tokens will not be being traded, no APY is generated. Honeypot addresses this with a specialised strategy: a swap incentivization plugin that instantly rewards customers for participation, and a system that reinvests buying and selling charges obtained by liquidity suppliers into varied lending protocols, additional boosting yields. This mixture is their answer to the TVL problem.
A speaker from Scallop described how their lending protocol differentiates itself within the DeFi panorama. Built as a next-generation cash market on the Sui blockchain, Scallop employs a novel mannequin that separates lending belongings from collateral belongings. This ensures that lending belongings are at all times accessible for loans whereas collateral belongings are protected against being borrowed, permitting the protocol to take care of adequate liquidity for potential liquidations. This strategy supplies one of many strongest danger administration frameworks within the business. Scallop additionally presents a lending by-product known as Scallop Market Coins, the place customers lending USDC obtain sUSDC, which could be reused inside the protocol to maximise effectivity. Additionally, their voting escrow (VE) mannequin permits institutional customers or household workplaces to optimize cryptocurrency publicity with high safety and strong danger administration.
The dialog then shifted to how Manta Network approaches creating sustainable but enticing incentives for each customers and establishments amid rising crypto adoption. Kenny Li defined that as a Layer 2 community, Manta is especially targeted on DeFi yield for institutional funds. These establishments typically come from conventional finance and will not be accustomed to DeFi mechanics, similar to token swaps and yield loops. Manta goals to translate acquainted monetary instruments onto the blockchain whereas leveraging on-chain mechanics to generate yields which can be 10 to twenty instances greater than conventional index funds. By combining institutional familiarity with the advantages of decentralization, Manta supplies a means for conventional gamers to entry Web3 yields in a safe, scalable method.
Bridging TradFi And Crypto: KuCoin, Manta, And beraBTC Discuss Institutional Adoption And DeFi Innovation
The dialog then shifted to the position of exchanges in bridging conventional finance with cryptocurrencies. Tika from KuCoin mentioned how the platform is adapting to the evolving regulatory panorama of the cryptocurrency sector. Over the previous two years, establishments have more and more participated within the bull market, coming into the crypto house as regulatory frameworks improved. KuCoin has positioned itself as a gateway for these establishments, sustaining ongoing dialogue with regulators to make sure compliance and replace related licenses.
Kenny Li from Manta shared his perspective on the evolving relationship between centralised finance (CeFi) and DeFi over the following 5 to 10 years. In the brief time period, spanning two to 5 years, conventional banks could wrestle to seize on-chain yield alternatives, and their present fashions typically return solely a portion of the worth generated from buyer funds. DeFi, in contrast, is fully user-owned, providing aggressive alternatives for greater returns. As institutional participation grows, consciousness of the benefits of on-chain exercise is more likely to enhance, doubtlessly shifting consumer preferences from conventional banks to DeFi platforms providing 10-15% yields. Over an extended horizon of 5 to 10 years, Li recommended, the very idea of banking might be basically reworked, forcing conventional monetary establishments to reevaluate their position out there.
The dialogue additionally touched on safety measures applied by Scallop and examined the rising Bitcoin and BTCFi infrastructure. Honeypot highlighted how communities and DAOs can leverage the platform to bootstrap their very own token liquidity, creating decentralized alternatives for engagement.
The panel concluded with Hannah from beraBTC offering her outlook on the BTCFi ecosystem over the following one to 2 years. She emphasised efforts to deliver extra Bitcoin on-chain whereas increasing participation amongst particular person customers and communities. Recent initiatives, similar to a ten,000-node sale involving over 3,000 contributors, enable group members to mine and instantly personal Bitcoin. Hannah famous that these efforts are geared toward growing particular person possession and engagement with Bitcoin within the brief time period, highlighting the rising position of community-driven initiatives alongside institutional involvement.
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