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

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 Boost VC Website https://www.boost.vc/ Boost VC on Facebook https://www.facebook.com/boostvc/ Boost VC on Twitter https://twitter.com/BoostVC