Mavericks owner Cuban calls for DeFi urgency: Ignore it and the US will lose significant future growth engine, reveals investment portfolio

Entrepreneur Mark Cuban wrote an article about the potential of decentralized finance, which includes yield farming, liquidity providing, and evaluations of certain cryptocurrency projects. He bluntly stated that if the United States ignores innovations like DeFi, the country will miss out on the next major growth driver.

Forcing DeFi Talent Out Will Lead to Loss of Competitiveness

Mark Cuban stated that what sets DeFi platforms apart is that they are not in the U.S., nor are they corporations; they are decentralized autonomous organizations (DAOs), meaning no one has majority control. He added that although founders have significant influence, attempting to force these influential and innovative entrepreneurs overseas is simply foolish.

He further expressed that looking back 10 to 20 years after the pandemic, companies created in 2020 and 2021 with global impact will undoubtedly include DeFi and other cryptocurrency organizations at the forefront. Ignoring such innovations in the U.S. would mean losing a significant driver of future growth.

Examples of Cryptocurrency Projects Mentioned by Mark Cuban

Polygon MATIC: Provides efficient and low-cost solutions for Ethereum. He used this as an example to illustrate that in traditional enterprises, cost growth often outpaces profits, but in the decentralized world, symbiotic relationships give advantages in both capital and operational costs, something financial institutions should take note of.

Decentralized exchange tools: Zapper.fi, quickswap.exchange, bancor.network, Uniswap. He believes that traditional banking operations require significant financial depth to provide various currencies and services, which, if implemented globally, would be costly and risky. In DeFi, this task is entrusted to liquidity providers (LPs). Mark Cuban also revealed that he is a small liquidity provider for DAI/TITAN on quickswap.

Aave: An automated, permissionless lending platform. He pointed out that being controlled by smart contracts, fully automated, permissionless, without bankers, vaults, or complex forms, loans can be obtained. Its capital efficiency is much higher compared to traditional methods.

How to Evaluate DeFi Platforms?

Mark Cuban stated that the DeFi world is highly competitive, and most projects are not viable. He evaluates based on current earnings, growth rate, defensibility, and community strength. If a project only talks about future plans but has not accomplished anything or generated income after several years, it is cause for concern.

He also provided a website he frequently uses for DeFi fee profit statistics for people to evaluate data: https://cryptofees.info/