Decentralized finance (DeFi) applications have grown in popularity over the last few months as more blockchain use cases are developed for these applications. Many prominent blockchain industry players have shown interest and are placing investments in DeFi applications.
Lubin pushes for DeFi Ecosystem
Joseph Lubin, co-founder of Ethereum, has come out and stated outright support for DeFi applications. During a press conference at Ethereal Tel Aviv, Lubin said that Ethereum is a shared execution space, and developers should be building applications that synergize the network. He went on to announce that his venture studio, named ConsenSys, is entering the DeFi ecosystem. ConsenSys is introducing a new product suite called Codefi.
Lubin said that DeFi applications such as Uniswap and MakerDao are currently some of the most important developments in the blockchain industry. He said that he doesn’t own any governance tokens for MakerDao, an Ethereum-centric loan system, but he declined to offer any comment about whether they form part of ConsenSys’ portfolio. Instead, Lubin said that he has always supported MakerDao.
Codefi Software Suite
The Codefi product suite comes with a four part application which address various blockchain needs. Lex Sokolin, co-head of global fintech at ConsenSys, said that the software suite can be compared to Stripe or Twilio, and will serve businesses in need of payment processing.
Codefi comes in four parts namely assets, data, payments, and networks. There has not been any clarity about the clients targeted by Codefi suite, or the amount of revenue they aim to generate, but it is quite clear that the application has been developed for enterprise customers who need a crypto payment processor, or a fiat currency processor that uses blockchain systems.
This particular software suite has been designed for in house use, and all revenue generated through it will stay with ConsenSys. If it becomes successful, Codefi will become an important pillar of ConsenSys’ business model. The primary phase of Codefi’s launch will be spent trying to get enterprise clients on board.
ConsenSys has struggled to find business models which provide a return on investment made in research. They will be hoping that Codefi will become a successful business endeavor. Sokolin said that they have run several projects and startups, and these did the leading work for the company. ConsenSys has learned from these previous projects, and they have noticed a gap between products and client needs.
The suite is currently being explored under a controlled release, and there are a few unnamed pilots through whom it is being tested. Jeremy Milar, chief of staff at ConsenSys, said that the firm has several paying customers seeking such clients, and these are far more than the team of 40 product managers and developers at ConsenSys can support.