To spread the message, our CEO, Jay Hao, is holding a new virtual OKExDeFi Roundtable talk series with leaders from various industries to discuss their DeFi progress, insights and future plans.
In this roundtable, Jay interviews Luis Cuende, the founder and CEO of Aragon.
Here are the key highlights from the roundtable.
Jay: I heard about an interesting decentralized autonomous organization product live on the Ethereum mainnet — Aragon Court. It seems like Aragon Court is acting as a tool for easier coordination and dispute resolution within DAOs. Can you tell us more about what Aragon Court is and its importance?
Luis Cuende: So, basically, DAOs are smart contracts. They’re great but very static. At the end of the day, they’re computer codes — and computers don’t know everything that’s going on in the human brain. Smart contracts can tell if your balance is above or below a certain number, but they cannot tell you if you’re abiding by human rights — like freedom, privacy or whatever.
So, there’s an element that DAOs are missing today, which is the subjective element that exists in the law systems in the world, enforced by courts — and so, we created this decentralized court. With this decentralized court, DAOs can create their “constitution” and, if someone does not abide by it, someone can open a dispute and go to the court or penalize the party that is not abiding by this. That allows a bunch of things because thousands can access a new world of subjectivity.
It is very similar to a real-world court. The difference is that, in the Aragon court, the jurors are anonymous, and they are economically incentivized using something similar to proof-of-stake. So, it is different, in that sense, but the process is very similar, actually.
The other difference is that the cases that, right now, are on Aragon court are very different from the ones you handle in the traditional world. For example, we are looking at easy things like content moderation. We’re looking at things like: Does this proposal for funding comply with this small document about which grants could receive money from this DAO? It’s not like you can sue a pharmaceutical company or something like that.
The other important thing is that, in Aragon court, it is fully limited liability.
Jay Hao: What do you hope the centralized players like OKEx can do more to facilitate the DeFi space?
Luis Cuende: I have a suggestion — and that is to launch a DAO and give OKB holders governance of something you believe is valuable. I believe the power of DeFi is community, so I’m looking forward to the first centralized exchange that launches a DAO and some kind of yield-farming program with some tokens. I think that’ll be incredible.
Jay Hao: Some of the early players in the crypto space, like us, still remember the DAO attack in 2016 very clearly. The hack made us reflect on the development of decentralized autonomous organizations. What can be learned from this incident that could help with crafting the future of DAOs?
Luis Cuende: Obviously, when we were making decisions in 2016, it was a few months after the DAO hack. So, one thing we wanted to take seriously was security.
So, today, in DeFi, you can see the protocols have a hundred million dollars in asset management in an hour without audits. We would do a lot of code audits, security audits, security background audits, and grow our asset management very slowly. If you see Aragon today, after two years on the mainnet, the assets under management have grown a lot lately. It’s like, maybe, $4 million a year ago to $150 million today.
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Credit to our OKExDeFi Roundtable Guest: Luis Cuende, Founder & CEO @Aragon
Twitter: https://twitter.com/licuende
LinkedIn: https://www.linkedin.com/in/luisivancuende/
Aragon
Twitter: https://twitter.com/AragonProject
LinkedIn: https://www.linkedin.com/company/aragonproject/
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was originally published in OKEx Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.
