Multicoin’s Applebaum Says AI Is Shifting DeFi’s Competitive Edge

Artificial intelligence (AI) is lowering DeFi software costs, shifting competition toward customer access, capital and proprietary underwriting data, Spencer Applebaum, Multicoin Capital’s general partner and venture co-head, argued in a Nov. 10 essay. Applebaum’s framework centers on three advantages beyond software. Distribution means more than making an app available: he tied it to lasting customer relationships and the order flow those users generate. An existing customer channel can be harder to replicate than code, keeping users and activity connected to a financial product. Capital is a second advantage because a balance sheet can absorb losses. Applebaum cited risk-bearing prime brokers and reserves held by protocols as examples of capital that can support a business through losses.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to TokenPost.