Hey everyone, I'm Rune, CEO of the Mega Foundation and I'll be telling you all about what's coming next in DeFi in less than 20 minutes but Before we start talking about what's next we first need to talk about what's the point of it all? what is the ultimate promise of DeFi DeFi is a new generation of inherently global and unbiased financial systems that have the potential to Truly improve the lives of billions of people around the world We all know this saying that money is the root of all evil Well, I believe that with DeFi we can turn this on its head and we can use money and financial systems To solve the world's problems instead of causing them Just look at global inequality One of the tragic consequences of the broken financial system of today well the way that DeFi helps with a solution here is by creating a new and superior financial system that Focuses on efficiency instead of rent extraction and That gives everyone direct and equal access Instead of completely blocking a lot of people and giving the rest preferential treatment based on their status Today the best you'll get is if you're rich enough and you're lucky enough. You'll get access to private banking but in The future any person Regardless of who they are or where they're from They will all have all that direct access right from their phones through DeFi and This is so important because What we're doing is we are giving people the tools that they need So that they can improve their own condition and That's why it's so important that we take the technology and we spread it around the world and reach all the people out There including the 1.7 billion without a bank account including the financial underserved that's been left on the fringes of modern society Because of the broken financial system that was not able to serve them I'm incredibly honored to be here today speaking in front of all of you the very people that will build this future and I hope that you all Keep in mind that technology that you've been lucky enough to get into this early in its life cycle exists for a reason it has the potential to truly improve the lives of Billions of real people in the real world All right now before we go and say the world It's probably time that we take a realistic look at where DeFi actually is today Because most people obviously know that the hardest part of the journey is definitely still ahead of us But that doesn't mean we can't be excited about how far we've already come Because just think about if you went back four years in time and you were able to Tell someone back then when Ethereum just launched What they would be doing today on a daily basis with DeFi Their minds would certainly be blown because it is pretty amazing what we're doing now and the reason for this I think is because of The we've unlocked the first quantum leap of DeFi, which is the composability of DeFi protocols You can seamlessly and without asking anyone for permission Stack and connect together DeFi and unlock the network effects and the synergy between them regardless of who you are Many people this in the community describe this as Legos, right? You can simply take DeFi and you can stack it on top of each other and I think one of the best Real-world examples of this is the instadab project So instadab is one of the very first projects in a space that took this approach of combining DeFi protocols like maker and compound and Putting a single easy to use front-end on top of them so that their users could get access to the individual protocols and the synergies that exist between them and this was built by Two kids out of India with no connections with no start capital all they had was this direct access To the DeFi ecosystem and it worked. They're now the fourth most popular DeFi project and Just a couple of days ago They were funded by some of the top investors in the space proving that there is real value in the composability of DeFi Now if we go a step further To the newest layer on the DeFi stack We get to the point where things are starting to get real Where DeFi is starting to interact with the real world and The best example of this are the die-carts just like this one so this for those of you can see it is a is a crypto debit card that supports die and This is a huge deal because what this means is that we now have a direct connection a direct link between the entire traditional Payments infrastructure and the entire DeFi stack and all the opportunity that it provides and it means that you can now go anywhere in the world and Pay for a coffee with dye that you just borrowed using Ethereum as collateral in a DeFi protocol However, just because we are now at the stage where you can finance Starbucks with DeFi Doesn't actually mean that we're there yet, right? It's still just a small step because we are still just at the stage where DeFi is a really cool experiment that we now know works for real But where we have to go is to where this technology is Improving and impacting the lives of real-beat people on a daily basis that are using this technology because it provides them with real utility and This transformation from experimental into mainstream impact is the hardest in Any technologies adoption lifecycle and it's often referred to as crossing the chasm Because this is actually where a lot of technologies they get to this point and they simply don't make it They don't ever enter mainstream relevance and they actually just die off So I think it is incredibly important that we as a community recognize the immense challenge ahead of us and That we work together so that we can make sure that our technology crosses the chasm Successfully and has a real impact on the real world But the good news is that based on what I'm seeing in this space of working in DeFi for many years there are Trends emerging and that are already happening and specifically two major trends that I think Will be the basis of the next quantum leaps that will unlock The value and that will give DeFi the boost that it needs so that we can cross the chasm and the first is The tokenization of real-world assets, so the tokenization of real-world assets means that we are taking the traditional financial infrastructure markets assets the value we're taking all of this and we are bringing it on to the blockchain and Doing that means that it then becomes available to interact with DeFi protocols just imagine Tokenizing your house so you can put it into a maker CDP and Generate die and this way you've just created your own DeFi mortgage completely without any sort of interference from a bank or from a counterparty That might sound crazy But that is where the space is already headed and it's accelerating and this is how DeFi will get access to the trillions of dollars that exist in the real estate markets in the commodities markets and trade finance and Get access to all of this value and all of this opportunity so that it can be brought into DeFi and provide the basis of our scaling to Get our capacity to the point where we will be able to Supply the entire world with a new and better generation of financial services And I especially think that if you look at this From the perspective of maker specifically It is really clear that it is only through Real-world assets that we will ever be able to scale the supply of die To the point where it needs to be If we really actually want to bank the 1.7 billion unbanked The great thing about the tokenization of real-world assets is also that once we have this scale and once we've brought on The legacy financial markets into the blockchain we can then turn around and bring the blockchain out into the legacy financial system And we can go out and upgrade the banks The payment infrastructure the clearing houses all these institutions and solve the fundamental problems that they have today with trust and accountability and This way create a lot of improvement in the world because Just imagine if back in 2007 anyone could from their phone Perform a real-time audit of the entire banking system just like you can today with maker using mpr. The tools I Think the financial crisis would probably have played out a little bit differently now. You can't start talking about real-world assets Without also talking about the other our word regulation and So regulation is a bit of a hot topic in the crypto space, right? There's a lot of people that are very concerned about it and how it is going to impact our ability to innovate and that's exactly how we felt in The mega foundation when we first many years ago realized that only through real-world assets will we be able to scale die to the place where it needs to be so that it can serve the entire world and bank down bank and What we found out is that the solution to this problem is already happening and it's already taking shape today and all you have to do is look at something like Bitcoin and Ethereum and how they are regulated because What's happening is that the regulators are not touching the core protocol there instead going to? the centralized exchanges that Bitcoin and Ethereum rely on for their value and for their markets and This is a phenomenon. We call regulation at the edges and it's actually a very natural process because what's happening is that Regulators are always going to regulate anything they can get their hands on within their jurisdiction so they naturally go to the exchanges because that's what they can grab but No regulator is ever going to push through regulation that they know they cannot enforce So that is why they leave the decentralized protocols themselves on their own as long as they are truly decentralized and The great thing about regulation at the edges in this way is that if your protocol is Spread out enough across the world so that its edges pass through a hundred jurisdictions The exposure you have to a single regulator is Incredibly small and your risk is diversified to the point where it is barely any risk at all and That is why no one today would contend that Bitcoin or Ethereum are not decentralized despite the fact that they rely on centralized exchanges for their value Because ultimately the risk that this represents to them is so diversified that it is not a real issue and I think another issue another great example when it comes to regulation and blockchain is to look at USTC on compound and how they interact because this is probably the first ever example of a regulated centralized real-world asset being brought onto the blockchain and used as the basis of value in a decentralized d5 protocol and I think that with these Examples and these presidents that we are already seeing in the space There's definitely a way and there's definitely a stable environment that can be created where Regulation and decentralization can be reconciled without compromising either So the d5 can thrive and can remain decentralized But can also reach the scale that it needs to get to in order to serve the financial needs of the world now we've talked about The first quantum leap of composability in d5 as well as the quantum leap That's coming with tokenization of assets that will allow us to scale d5 on the supply side and under with the capacity It needs to see to serve the whole world's needs But now we need to talk about how we are going to scale on the demand side How are we going to scale all the use cases of d5 so that it can meet all the different demands that exist out in The real world and that are being met today by the current financial services and this is where synthetic assets come in So synthetic assets is the basic concept that you take d5 and use that to emulate a real-world asset and Actually, the best example of a synthetic asset is the dye stable coin because a decentralized stable coin is just d5 emulating the US dollar and You can take this process and use that for anything Including the euro or any other currency and this is actually a simple option. That's available for instance to make your governance that is able to create any kind of stable coin it wants to create and It goes beyond just currencies. You can do this for any type of asset You can create synthetic gold or synthetic stock index and These things are already happening So it really proves that d5 Truly has a capacity to meet any kind of demand and any kind of use case that currently exists for financial services and through this Be a proper substitute for the current broken and unfair financial system So I really think that with the tokenization of real-world assets Providing the scale that we need on the supply side and with synthetic assets Scaling the demand side of d5 and scaling the use cases of d5 We have everything that we need so that we as a movement and as a community Can take d5 to the next level and successfully cross the chasm and have a major impact on the real world Improving the lives of billions of people that are being treated unfairly by the current system now before I go There's a one last thing to talk about Multicolateral die is launching on November 18 Finally Yeah, it's finally happening, but of course Because maker is a decentralized project The maker foundation isn't just able to launch multicultural die on our own We need all maker holders and the maker governance to support us By voting it through in the executive vote that's happening on November 15 So MKI holders, please remember to vote and help us launch MCD One of the coolest things that's coming in Multicolateral die is the die savings rate So the die savings rate Means that anyone holding die will be able by just a click of a button earn a return on that die and This is very unique because this is a risk-free return if you're already holding die There's not an extra decision you have to make whether you want to get this return or not It's something that can be built in automatically and that means it's creating a whole new dimension for developers and for DeFi projects to figure out how they want to Integrate the die savings rate on the back end of their products And we are incredibly excited to see what you're going to do with this new feature and how what kind of innovation that will come out of it And of course also on November 18, it'll be possible for anyone currently holding die to through Instantly with a click of a button upgrade your die to Multicolateral die so that you can start earning the die savings rate And of course, this is just the tip of the iceberg. There are so many other new features coming to the system including of course multiple collateral types and That of course also means that there's going to be a lot of activity that make our governance will have to participate in in Order to launch this successfully. I think it is so incredible to think about that what we are launching today or soon is almost exactly What was originally described in the first mega white paper more than four years ago, so it really shows that we are delivering on the original mega vision And it's also so incredible to think about that Like the huge technological leaps that we have made so that we could securely launch What is likely the most advanced blockchain application ever made? So I want to thank all of you in the Ethereum community in the mega community in the DeFi movement for everything you've done For all the momentum you've created and all the hard work you've put in So that this day could become a reality And if you want to learn more and get some more details about the launch, please go to a blog and read the blog post there It'll have all the information Once again, thank you everyone so much. I'm so excited. This is finally happening after all this time and if you're an MKR holder Please remember to vote and participate in this launch. Don't miss this once in a lifetime opportunity Remember that maker is a decentralized project and it can only happen with the participation of all of you So check out our discussion forums and social media and Be a part of the conversation about the future of maker and DeFi Thank you, everyone