Binance CEO Changpeng Zhao is keeping close tabs on the world of decentralized finance. In a recent comment, he highlighted the need for transparency and accessibility, two aspects which Lemonade Stand approach embodies perfectly.
Changpeng Zhao said:
“To simply show the difference of traditional/centralized finance and decentralized finance, I would like to bring in the Lemonade Stand idea. In traditional or centralized finance, the kind selling lemonade would need to go to a central body, an older person who owns the stand and who is in charge of the stand, to ask to keep his funds safe or to help the kid collect the payments from the customers.”Changpeng Zhao is in a prime position to analyze what the decentralized finance industry needs today. Gaining broader mainstream traction will require a very different approach from what is on the market today. Although the industry is nascent and underdeveloped, its key issues are painfully apparent.
The focus needs to be on peer-to-peer solutions. Lemonade Stand approach removes the intermediaries from the equation and provides unprecedented transparency. As Zhao stated, making it easier to create financial products to grant everyone financial freedom is of the essence. He adds:
"In DeFi, the kid can use his digital currencies to trade one-on-one with the customers directly, and the kid will be in power. I think this is how much DeFi should be easy, as easy as for a kid to trade and use."Lowering the costs and broadening the access to products and services will help create a more appealing and versatile user experience. DeFi should not need complexity but be as easy as setting up a Lemonade Stand to bring one's financial product to a broader audience. Rather than relying on central bodies that tell others what they can or should do, the objective is to facilitate one-on-one interaction.
