It's official: I've started a new role as General Counsel for @compoundfinance! I've wanted to go full-time into the crypto industry for a while and I feel lucky to have found a position with a team I believe in & working on a mission I'm passionate about.https://t.co/qqmN8EXOgn
— Jake Chervinsky (@jchervinsky) May 30, 2019
Compound Finance is an algorithmic, open-source protocol that allows for the creation of money markets on the Ethereum blockchain. Individuals and institutions are able to earn interest on digital assets that they supply to the protocol. Whilst those that are seeking to borrow digital assets can do so directly from the protocol itself, without having to negotiate with a counterparty or peer.
In a blog post explaining his move, he writes:
“Compound is building a decentralized protocol for autonomous interest rate markets on digital assets, a key piece of infrastructure for the open finance movement. In my view, open finance (or “DeFi”) strikes at the heart of cryptocurrency’s prime use case: creating a fairer, more transparent, and more accessible financial system for the world. This goal originally sparked my passion for crypto, and I couldn’t be happier about devoting my full energy to helping Compound achieve it.”
He cites 3 reasons why he thinks Compound’s money market protocol is among the most interesting and important. They are decentralizing the risk-free rate, promoting control over personal finances, and securing long and short positions.
Regarding his role with the company, he says that he will be handling all of the company’s legal needs. Currently, many companies are struggling with regulatory uncertainty with US lawmakers unable to pass laws around the crypto ecosystem. He is confident that with the right education, regulators and elected officials will come to appreciate the revolutionary goals that open finance seeks to achieve.
If you were wondering why this news is important, even Anthony Pompliano Tweeted about it.
— Pomp 🌪 (@APompliano) May 30, 2019