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ReFi is the New DeFi: Credit Backed by Goods, Skills, and Services

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Refi is the new DeFi. If there was ever a time for the crypto skeptics to ask regulators to tighten their screws, it is now, says Ashley Taylor Buck, the co-founder of ReSource. ReFi could be the answer.

The crypto industry is battling turmoil. Market prices are dropping. There are meltdowns of crypto lending firms that were once held up as the embodiment of the industry’s best. All of this amounts to a collapse in public trust in this movement’s future. 

In order to find a way forward, we must first address the root cause of this ailment. This is opposed to slapping on a Band-Aid over the symptoms. There needs to be a strong foundation for real innovations to come. We need honest conversations about the systemic issues within DeFi that have led us to where we are. 

By now, it should be clear that what started with the Terra Lab crisis is not just a nasty blip. Amidst a flurry of lawsuits and investigations, the legitimacy and longevity of crypto has been called into question. 

It begs the question, ‘Were our fundamentals strong to begin with? Or is this the exodus we needed to rethink the dominant industry approach?’ 

The crypto credit crisis contagion 

There has been much analysis and debate over the Terra Luna and Three Arrows Capital collapse. To what extent did the implosion trigger the contagion spread across the broader market? 

The fallout and repercussions of this has been felt across the industry and by ordinary investors, prompting comparisons to the 2008 global financial crisis. We have always known that there are strong links between crypto and the broader financial market. But the fall of some of the ‘safest’ projects in crypto tell us something. It is crucial to revisit the fundamentals of some of these protocols and the industry’s relationship
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