Permissionless: America’s DeFi Renaissance | Eugene Chen & Merlin Egalite

Bullish:

• $TOKENIZATION - The entire financial system is expected to move on-chain due to its efficiency, global liquidity access, better rates, and continuous operation. This shift is seen as inevitable and could revolutionize the financial industry.

  • “Our thesis at, at Morfo is that the the whole financial system will come on chain. That's for sure. There's no doubt. Just because it's cheaper, more efficient, you get access to global liquidity. There's there you'd get, better rates, better trade execution, and it's running every day, the whole year.”

    Merlin·33:55
• $FINTECHDEFI - Within two years, all fintech companies are expected to integrate DeFi into their backend operations for improved efficiency and user experience. Failure to adopt this technology could result in companies falling behind their competitors.

  • “I think, like, by two years, all fintechs will have, like, in the back end, DeFi just because it's much more efficient. You you provide better experience, better product to users. And if you if as a fintech, you don't you don't do take the leap, you'll lag behind.”

    Merlin·41:54
• $USD - The US dollar is expected to maintain dominance in the crypto space, particularly for on-chain savings, with a predicted 90-95% dominance for the foreseeable future.

  • “I imagine you end up in a world where, you know, like, you have at least 90%, 95% US dollar dominance. There might be some other currencies that are used for, remittances or, yeah, you know, some some local currency that needs to get cashed out into. But to the extent that people are holding savings on chain, for the vast majority of people, I think it's gonna be dollars for a very long time.”

    Eugene·9:24
• $STABLES - Regulatory clarity is expected to benefit the stablecoin industry, potentially leading to increased adoption and innovation in the crypto space, particularly in regions like Asia, South America, and Africa.

  • “I think almost almost any regulation here is is likely to, to to be a good thing. We're gonna have a little bit less, discretion by the regulatory agency, which is, something we view as friendly today, but not guaranteed to be friendly, in perpetuity.”

    Eugene·4:20

  • “Most of most countries are, like, in Asia, East Asia, South America, Africa. And there's a lot of usage of USDC, USDT, on on on those, on those platforms. And I do think that Clarity in The US will also, create and push people to innovate and, increase their usage and their exposure towards crypto in general just because they they they need, they need it.”

    Merlin·5:55
• $DEFI - DeFi protocols are seen as a way to provide yield on stablecoins, even if regulated stablecoins can't pay interest directly. This could lead to increased integration of DeFi in traditional finance and broader adoption.

  • “So you integrate you can integrate that in a saving account. So there's another way to kind of expose users and and get access to that yield. It's not through, like, the yield of the T Bills, but through the the yield that you can get from, like, landing those asset on on DeFi protocols, such as Morpho.”

    Merlin·7:52
• $USCRYPTO - There's a growing trend of crypto companies embracing their US presence, potentially indicating a positive shift in the US crypto regulatory environment and market sentiment.

  • “Definitely feel or, you know, see many more, companies that, you know, spent a very long time saying on Twitter, like, oh, we are technically based in The Cayman Islands or whatever. You know, erasing all of their old tweets and saying we're proudly American again.”

    Eugene·12:24