# kaal:claim:3808859-029

**Claim.** DeFi's disruptive potential may be blunted by incumbents: existing financial institutions can adopt decentralized technologies inside a controlled environment, capturing benefits such as transparency and interoperability while preserving centralized oversight.

**Type.** predictive  **Support.** argued

**Source quote.**

> The disruption through DeFi may be mitigated by existing financial institutions' attempts to leverage decentralized technologies in a controlled environment that allows the utilization of its benefits, such as transparency and interoperability, while also facilitating centralized oversight.

**From.** Wulf A. Kaal, *Decentralization – Why We Need Technology Infrastructure Upgrades* (2021), V.1 From Disruptive Fintech to Decentralized Finance (DeFi), page 39

**Cite as.** Wulf A. Kaal, Decentralization – Why We Need Technology Infrastructure Upgrades (2021). SSRN: https://ssrn.com/abstract=3808859

**Verify.** sha256 of source PDF `304ad25d43b5ecea3158e3a2ca04e6e1e3bd2958e2134e2dcefbfedf3b6f3ab7` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20Decentralization%20%E2%80%93%20Why%20We%20Need%20Technology%20Infrastructure%20Upgrades.pdf

**Failure mode.** incumbent co-option of decentralized technology  (family: recentralization-drift)

**Topics.** defi, regulatory-failure

**Keywords.** defi, incumbent-capture, permissioned-systems, financial-regulation

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