I think one thing that might hold people back from participating in Defi is this idea that there is risk involved.

The community has been tricked into thinking that we should build a trustless system to be able to do under collateralized loans and credits, which is obviously wrong.

The mechanism that we're building is completely crypto agnostic.

It does not have to work with cryptocurrencies.

It could work with like any form of tokenized assets in general. Project for me, five to ten years out. What does the shape of finance look like? One single

database for the entire world. Paul, thanks for being here. You're building out Morpho. Tell us

what is Morpho. What are you doing? Morpho is a non-chain lending and borrowing infrastructure. So we allow people on one end to earn yield,

and on the other end, people take loans. And that's done on-chain in an open way.

For somebody who maybe is not into crypto, how would you describe what you're doing?

Crypto is about exchanging money without banks,

and Morpho is about lending and borrowing without banks. There's no intermediary, and effectively

you can lend and borrow in a much more open without intermediate way. Okay, so disintermediated banking.

Yes, disintermediated access to loan, like open access to capital in general to like if someone has an ambition and wants to do something and they can prove that they're trustworthy, then they can get a loan without having to rely on like a specific entity.

What misconception do people have about what you're trying to solve?

The biggest misconception about defy lending is that the protocols that operate the lending

and borrowing engine are in charge of issuing the loans and that in the blockchain world,

in the trustless world, the lending opportunity should be trustless and should be risk-free.

And for approximately seven, eight years, we've been building landing and barring protocols

that were understood as this fully autonomous engine where the thing was trustless and

nothing bad could happen. Whereas in reality,

what we realized building lending and barring protocols is that we should have trustless execution

of the loans, but the loans themselves are obviously risky and that you could take losses

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