Iakov Levin, co-founder of rivo.xyz, is at the forefront of transforming the financial landscape through decentralized finance (DeFi) and blockchain technology.
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In an exclusive interview with Invezz, Levin shared his insights on the evolution of DeFi, blockchain technology, and the challenges facing the crypto industry.
The Evolution of DeFi and Crypto Market Volatility
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Invezz: What is your perspective on the current state of DeFi, and how do you see it evolving over the next five years?
The first phase of DeFi, which gained traction in 2021, focused on building infrastructure for various tokens, including decentralized exchanges (Dexes) and lending protocols.
Currently, DeFi is transitioning to integrate traditional financial services into the decentralized ecosystem. This includes innovations like perpetual exchanges, interest rate swaps, and exposure to real-world assets (RWAs).
The challenge now lies in simplifying the onboarding process for new users, which often requires extensive research.
Looking ahead, the next five years will likely see expanded DeFi infrastructure covering more assets, potentially including stock markets. We can also expect the development of user-friendly interfaces that simplify DeFi interactions and the implementation of regulatory policies tailored for DeFi.
Invezz: How do you address concerns about crypto’s long-term potential, given its volatility and regulatory uncertainty?
Volatility is an inherent aspect of new technologies. It’s a natural part of transitioning to a decentralized global economy. In volatile times, there are significant opportunities to build wealth.
Regulatory clarity will evolve as governments address various layers of the ecosystem, from investment accessibility to policy-making. Initial steps, like ETFs and institutional investments in cryptocurrencies, are already underway.
Blockchain and crypto adoption
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Invezz: What do you think is the key to widespread cryptocurrency adoption, and how can it be achieved?
There isn’t a single solution. Adoption will progress incrementally as each constraint is addressed. Currently, a major obstacle is the user experience in navigating the decentralized world. Simplifying this experience for both crypto users and DeFi participants is crucial for broader adoption.
Invezz: How do you envision blockchain technology evolving over the next decade, and what new use cases might emerge?
I hope to see a global redistribution of wealth facilitated by DeFi, enabling anyone with a smartphone to access top-tier financial services without relying on traditional banks or governments.
This could have a transformative impact on developing countries by providing widespread opportunities for wealth accumulation.
Predicting specific use cases is challenging due to the rapid pace of change, but we should avoid overhyping specific trends and focus on genuine innovations.
Advice for first-time crypto investors
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Invezz: What advice would you give to investors entering the crypto market for the first time?
Start by building your portfolio with Bitcoin (BTC), Ethereum (ETH), and stablecoins. Allocate a small portion—about 5%—of your portfolio to explore riskier investments.
This approach allows you to gain experience and learn from mistakes. Stay open-minded and rational, and continuously educate yourself. Learning from real-world feedback will build your knowledge and confidence in the crypto space.
Levin’s insights highlight the dynamic nature of DeFi and blockchain technology, emphasizing the importance of adaptability and informed decision-making for investors and industry participants alike.
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