Trust in a Trustless World: How Sugar Plans to Bring DeFi to the Mainstream.

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Website: sugar.finance


Two years ago I caught the EOS bug. I dove headfirst into Dice mania, mining BET, DICE and all the others. I got excited about blockchain in general and EOS specifically – about the potential they have to reinvent entire industries.

I was creating huge spreadsheets to track the metrics of gambling tokens. None of the existing sites had the data I needed. I knew others had this same need, so I decided to build Marketcap.one. It quickly became the leading source of data on EOSIO tokens.

The plan from the beginning was for Marketcap.one to be the starting point of a larger, broader business. Similar to how Amazon and Google have expanded far beyond their initial offerings. I patiently waited for the right opportunity to expand, while building Marketcap.one and preparing.

I’ve found that opportunity. That opportunity is DeFi. Introducing Sugar.


DeFi has gotten the same early traction that gambling tokens did but in a much more sustainable way. Once the mining of those gambling tokens was finished, there was no incentive for people to continue using them and they mostly died. DeFi is different. It’s not an overstatement to say that DeFi has the potential to replace banking. To replace stock brokerages. To replace the entire investing infrastructure used by Wall Street and traditional finance.

The tokens being mined by yield farmers are not necessary for these platforms to continue and thrive. Seven billion people haven’t heard of any of this and they don’t need to receive tokens to use their bank or stock broker. They choose them based on their security, user experience, and returns. If DeFi products can improve upon traditional finance in those areas, people will come and they will stay.

Banks typically pay less than 1% interest, stock market investors aim for returns of less than 10%. These types of returns are a pittance to those who know their way around DeFi. However to traditional investors, returns of 10% or more seem too good to be true. Offering those types of Alpha returns to traditional investors — in a secure, user friendly way — is a value proposition they will eagerly accept. That is the goal of Sugar.

To achieve that goal, some bold decisions will have to be made. Decisions that may not please those with fixed ideas about what ‘crypto is all about.’ These maximalists may not want to use Sugar and that’s fine. It’s not for them, it’s for the seven billion people who have never used a blockchain, who don’t know or care what a blockchain even is, who don’t use words like ‘centralized’ as an attack, who just want better financial products.

Trust

Trust, centralized, permissioned — to maximalists, these words are attacks. To the other seven billion people, they are just called business. People choose financial institutions based on how much they trust them. Even in crypto, many of the leading companies built their businesses on the trust their users have in them. Coinbase, Binance, the list goes on and on.

Trust is not something to be feared, it’s something to be earned. Trust is the foundation of any successful financial institution. While so many fight this reality and preach the gospel of decentralization, Sugar aims to build a business that acknowledges and respects this reality. That works within it, in a way that will be appealing to a mainstream audience.

The goal of Sugar is for people to trust depositing their crypto in the same way they trust depositing into a bank or stock broker. To even increase this level of trust. That is the model I believe will appeal to a mainstream audience. Not one where people hold their own keys. One where people know their money is safe, even if they lose their password.

Sugar, as a layer between the blockchain and end users, can still have the benefits of decentralization. While providing security and a great experience to its users.

Sugar is a blending of the old way and the new way. Taking the best from each and improving on what didn’t work.


Join the discussion: t.me/sugarfinance