Ep. 83: Solving for Volatility in Crypto with a Decentralized Stablecoin—with Steven Becker of MakerDAO

The Boost VC Podcast

The most popular criticism of the crypto space is its lack of stability. What if you could solve for volatility, leveraging a decentralized stablecoin to mitigate the risk associated with a cryptocurrency portfolio? And how would a market risk manager from the traditional finance and investment industry assess the current risk profile of the blockchain space?
Steven Becker is the President and COO of MakerDAO, a decentralized, autonomous organization on the Ethereum blockchain. Based in Santa Cruz, California, Maker seeks to realize the potential of cryptocurrency through its Dai stablecoin, collateral loans and decentralized governance. Steven spent two decades doing market risk assessment in the traditional finance and investment space prior to joining MakerDAO.
Today, Steven joins us to discuss the current risk profile for cryptocurrency and the benefits of MakerDAO’s decentralized model. He shares some of the differences between traditional financial services and the crypto space and offers insight around his decision to transition to the blockchain ecosystem. Listen in for Steven’s take on the development of digital cultures and learn how technology, philosophy and economics inform crypto governance dynamics.

Topics Covered

Steven’s background in risk management
Traditional finance, investment space
Identify weakest point in mechanism

The current risk profile for cryptocurrency
Perception as brand-new industry
Disruption to change to adoption

The idea behind MakerDAO
Provides digital cash
Decentralized stablecoin
Solves for volatility in portfolio

Steven’s experience working in a distributed team
Structured meetings (Google Hangouts)
20 hours of ‘open space of operations’

How MakerDAO assesses opportunities
Weigh against country, jurisdiction and community
Top-down approach (i.e.: crypto adoption, ROI)

Steven’s introduction to the crypto space
Inquiry around what stablecoin looks like
MakerDAO closest to idea of ideal stablecoin

Steven’s philosophical approach to the blockchain
Concept of distributed trust
Stablecoin answer to volatility

Steven’s favorite part of the crypto space
Governing dynamics that make it work
Intersection of tech, philosophy and economics

Steven’s insight on the blockchain’s cultural value
Granular categorizations of corporate structure
Develop value system that aligns with cultural beliefs

Connect with Steven

MakeDAO https://makerdao.com/
MakerDAO on Twitter https://twitter.com/MakerDAO
MakerDAO on Medium https://medium.com/makerdao
MakerDAO on Reddit https://www.reddit.com/r/MakerDAO/
Steven on LinkedIn https://www.linkedin.com/in/steven-becker/

Resources

Rehive https://rehive.com/
The Sun Exchange https://thesunexchange.com/
Google Hangouts https://hangouts.google.com/
Remote: Office Not Required by Jason Fried and David Heinemeier Hansson https://www.amazon.com/Remote-Office-Required-Jason-Fried/dp/0804137501
MyCrypto https://mycrypto.com/
Taylor Monahan on Boost VC S2EP19 https://www.listennotes.com/podcasts/the-boost-vc-podcast/season-2-ep-19-distributed-KnJjPs_iqRu/
The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else by Hernando de Soto https://www.amazon.com/Mystery-Capital-Capitalism-Triumphs-Everywhere/dp/0465016154

Connect with Boost VC

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Boost VC on Twitter https://twitter.com/BoostVC