Public Key Podcast

DeFi Success in the Wake of Centralized Cryptocurrency Exchange Struggles: Podcast Ep. 43

Episode 43 of the Public Key podcast is here! In this episode, we have our first guest of Public Key back, Salman Banaei (Head of Policy, Uniswap Labs), to explain the migration of consumers to self-custody and DeFi protocols. 

You can listen or subscribe now on Spotify, Apple, or Audible. Keep reading for a full preview of episode 43.

Public Key Episode 43 Preview: Consumers migrating from centralized exchanges to DeFi protocols

In 2022 we saw the failures of several centralized crypto exchanges and service providers, which has led to many consumers choosing to move towards self-custody wallet options and using decentralized protocols. 

In this episode, Ian Andrews (Chief Marketing Officer, Chainalysis) is joined by a former colleague Salman Banaei (Head of Policy at Uniswap Labs), to discuss the sudden migration from centralized exchanges to DeFi protocols and how policymakers are approaching regulating decentralized ecosystems. 

Salman takes us back to the origins of decentralized finance (DeFi) and the practical use cases around the world for these protocols to benefit consumers. He explains how the transparency of these decentralized protocols could be a huge advantage for those that are unbanked and underbanked. 

Quote of the episode

“I think we’re at the point in the DeFi adoption curve where we’re moving from, kind of, the advanced crypto investor, which is comfortable with self-custody and storing their own private keys or using a service that stores it for them, to what we see as, kind of, the median crypto user, which currently, you know, might be relying on one of the centralized exchanges. And actually, Chainalysis data shows that there’s actually been a migration, the extent of which it’s a little bit ambiguous, but certainly, there’s been a migration of crypto digital assets from centralized exchanges to self-custody wallets, post-FTX, as credit risk has become a serious issue, as it relates to the centralized exchanges.” – Salman Banaei (Head of Policy, Uniswap Labs)

Minute-by-minute episode breakdown

  • (2:30) – What’s new in Decentralized Finance (DeFi) around the world 
  • (4:35) – The origins of Bitcoin and Ethereum that led to DeFi and what role Uniswap plays in the decentralized ecosystem
  • (11:25) – The shift from centralized crypto exchanges to decentralized finance products and self-custody options
  • (19:21) – What is the international regulator’s perception of DeFi and additional transparency not so prevalent in traditional markets
  • (25:21) – Can DeFi solve the problem of predatory fees of traditional financial institutions 
  • (29:15) – Responding to the anti-crypto sentiment that has increased since major failures in 2022
  • (32:25) – New Uniswap features and outlook for 2023. 

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Speakers on today’s episode


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