- DeFi platforms have united to rebuild trust in Web 3.0 products after the space was marred in exploits in 2022
- The platforms agreed to promote each other for a day on social media platforms
- Some participating platforms include Aave and MakerDAO
A group of decentralized finance (DeFi) platforms have united to rebuild trust in Web 3.0 products after some centralized finance (CeFi) and DeFi protocols were marred in controversy in 2022. The platforms agreed to promote each other for a day on social media starting February 6. They also used the opportunity to drum up support for trustless platforms instead of the popular centralized protocols.
Coordination Extends Boundaries
The initiative required the likes of Aave and MakerDAO to share each other’s tweets to prove the trustless nature of the Web 3.0 space. The initiative which attracted over 30 protocols defined the move as “an experiment in social coordination.”
Web3 is powered by composability and interoperability.
Our industry wins when we play to these values.
We’re proud to be one of the 30+ protocols or orgs that took part in today’s experiment in social coordination.
Decentralized, united, we win.
— Maker (@MakerDAO) February 6, 2023
According to MakerDAO’s CMO Mamun Rashid, the decentralized world needs to come together to showcase the potential in the space and extend the limits of conventional finance. SushiSwap’s CEO echoed Rashid’s views noting that Web 3.0 technology is meant to decentralize the financial world and also make it safe, transparent and equitable.
More Adoption, More Hacks
The initiative by the 30+ DeFi protocols comes despite the DeFi and CeFi spaces being marred in controversy in 2022. For example, centralized platforms like FTX collapsed with people’s funds and NFTs locked inside while DeFi protocols like Ronin lost over $500 million to a hack. Although the DeFi world has recorded notable adoption in the past years, hackers have seen it as a low-hanging fruit leading to exploits.
The potential in the Web 3.0 space has seen countries like Japan use the technology to publicize innovations while Google, Opera and Mastercard have declared support to individuals seeking to build in the decentralized world. With DeFi exploits expected to increase in 2023, it can only be seen whether the DeFi protocols’ initiative will bear fruits.