[Blockchain Today Reporter Jeong Seung-won] Mark Cuban, an American billionaire entrepreneur and owner of the Dallas Mavericks, praised the profit and interest farming of DeFi in his personal blog.
According to Cryptopotato reports, Mark Cuban simplified the process of supplying liquidity and farming interest in a blog post titled Farming Interest, Providing Liquidity, and Valuing Crypto Projects. DeFi interest farming exploded with the launch of governance tokens by the Compound Finance Protocol in mid-2020, becoming the first platform to do so.
Cuban, who has invested heavily in layer 2 aggregator polygons, was the first to emphasize this. He approached the protocol from a business perspective and analyzed what the protocol does and why it is worth the investment. We compared it to Amazon’s cloud service, which is highly centralized and designed to return profits to companies and shareholders.
“Blockchain-based businesses are rapidly differentiated from existing software, and the difference is that crypto-based businesses such as Polygon and Matic and their competitors, Bitcoin (BTC), Ethereum (ETH), and Doge ( Doge) coins,” he said.
“If the DeFi protocol had taken the centralized business path where the DeFi protocol controlled and owns everything, it would have potentially raised a lot more, rather than millions, of funding,” he said. We created a token,” he explained.
Mark Cuban explains how decentralized exchanges, automated market creation, and liquidity provision work, and concludes that “deFi has ripples because it doesn’t focus on the company’s interests.” “DeFi isn’t profit-maximizing, because it’s decentralized across almost all crypto-based organizations, and all tokens are created the same. It doesn’t matter who owns it,” he said.
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