Speculation is DeFi’s double-edged sword

DeFi’s speculative nature is its unique strength, which lies in democratizing financial opportunities, and its value lies in leveling the playing field.

Opinion by: Billy Campana, contract developer, Api3 

Speculation is a cornerstone of price discovery for traditional finance institutions like hedge funds and major banks and plays an essential role in their day-to-day operations. It is the mechanism by which they can establish reliable valuations for everything, ranging from simple stocks and bonds to complex derivatives and structured products. 

While decentralized finance (DeFi) is often criticized for its speculative “casino” nature, this is, in reality, one of its strengths: making practices like arbitrage more accessible to everyone and empowering individuals to participate in opportunities once out of reach

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