10 - Regulated Decentralized Finance Flashcards
1
Q
3 reasons for an entity to issue digital securities
A
- liquidity premium
- global reach
- automated compliance
2
Q
Benefits of digital securities
A
- Democratizes access
- liquid assets
- faster transaction
- improved traceability & transparency
- improved interoperability
3
Q
Parties involved in equities trading in the future
A
- seller
- buyer
- issuer
- regulator
4
Q
Which questions to answer with yes on whether DeFi is needed
A
Directly mediates the transfer of value?
Settlement on a public blockchain?
Assets cannot be unilaterally expropriated?
Open source code and API?
5
Q
Asset pooling
A
Digital asset holder can lock his assets via smart contract then put it in asset pool. Another user can take loans and pay fees for that. The lender then receives fee the debtor payers.
6
Q
DeFi categories
A
exchange, stable coin, lending, insurance, derivatives, margin trading
7
Q
DeFi challenges
A
- user responsibility
- systematic risk
- protocal changes
- regulation
- protocol design flaw
- scaling
8
Q
Why is Germany becoming a crypto hotspot?
A
- Greatest possible flexibility in structuring of profit participation rights
- Recognized mezzanine capital
- Exemption of pure holding companies from capital gains tax.
- Internationally recognized legal system
- Prestigious legal market (export goods)
9
Q
Work to do in Germany
A
- No extended digital security
- Expensive custody of global certificates
- No freedom of movement for German prospectuses ( a formal document that is required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public)
- Sync with EU law
- high costs due to Anti-Money Laundering requirements
- Expand further on unique legal constructs
10
Q
What’s coming on the asset side
A
- staking nodes
- public stocks
- carbon certificates
- music rights
- club tokens
