DeFi can take a hint from traditional finance to lower risks

Infinity Exchange CEO Kevin Lepsoe says if DeFi wants more institutional adoption in crypto, it must first nail the fixed income markets.

The decentralized finance (DeFi) ecosystem scored another win against traditional finance, often called TradFi, with a former Morgan Stanley executive launching a DeFi protocol.

Kevin Lepsoe aims to deliver an institutional fixed income scheme that offers fixed and floating rates with his new project Infinity Exchange.

According to Lepsoe, his new project will allow DeFi traders to “implement arbitrage, pull liquidity from other protocols and hedge their futures rates basis risk positions.”

The DeFi market is known for its volatility and, therefore, risk in digital asset trades.

Trading with more options enables one to hedge risk and speculate along the entire span of a maturity curve.

With more investable asset options available to trade along the said curve, users can move from risky and riskless assets more easily.

Lepsoe told Cointelegraph that introducing a crypto yield curve is important to the growth of DeFi trading because it lowers volatility.

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