.BankofAmerica says the correction in digital asset markets last year led to a shift in focus and capital from speculative trading to projects with real-world functionality, but DeFi's current functionality barely scratches the surface. By willcanny99
“The inability to identify users, access credit scores and perform AML/KYC requirements creates regulatory headwinds and limits use cases to trading platforms and overcollateralized lending products, which also creates headwinds for mainstream adoption,” analysts Alkesh Shah and Andrew Moss wrote.
“DeFi applications require development to produce a differentiated product and positive user experience, which drives adoption and usage,” the report said, adding that “increasing adoption and usage result in increasing revenues and native token appreciation if properly designed, both of which can be reinvested in development.”
Bank of America says the majority of DeFi applications are immature, “but we remain in the early stages of a major change in applications that may take place over the next 30 years.” In the longer term, the bank expects the development of DeFi applications with real-world functionality to increase the efficiency of traditional financial products and services, and it anticipates that these applications will evolve by “optimizing the tradeoffs between user incentives and risks.”
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Did America’s Biggest Bank Purchase a $175 Million Lie?Ron Lieber on how the financial aid startup Frank wasn’t all that it seemed.
Consulte Mais informação »
KBW downgrades Bank of America, says the stock trades at an unwarranted premium to its peersAlong with the downgrade, KBW trimmed its price target to $33 from $35 a share, suggesting nearly 10% downside from Wednesday's close price.
Consulte Mais informação »
Virginia Tech marks milestone, raises final beam on Innovation Campus buildingVirginia Tech marks a milestone and raises final beam on an Innovation Campus building.
Consulte Mais informação »
EXCLUSIVE: Losano Luxury Knitwear Taps Brooklyn’s 3D Knit InnovationLosano's first luxury knitwear line is 3D knitted right in Brooklyn.
Consulte Mais informação »
Crypto Council for Innovation GC to testify at US Senate 'crypto crash' hearingThe U.S. Senate Banking Committee has announced three witnesses for its Feb. 14 hearing titled ‘Crypto Crash: Why Financial System Safeguards are Needed for Digital Assets’.
Consulte Mais informação »