In this episode we sit down with Doug Leonard, CEO of Mainframe, who talks about his experience getting into cryptocurrency. He also shares how Mainframe is launching a new defi application that allows peer-to-peer lending, helping individuals grow their investments through the platform.
Doug’s Humble Beginnings
Doug’s introduction to cryptocurrency started in 2012 when his friends started talking about it. He got interested because of hashing algorithms at school and related it to his background in Masters of Information Systems. He invested money and put up a mining farm.
Despite speculations, he started building up skills as an engineer, which led him to become a mobile engineer for two companies. His wife encouraged him to pursue blockchain, considering that he sees so much potential in it. So Doug left his consulting job and later on found the best cryptocurrency startup, which led him to Mainframe.
The Mainframe was a chat application. When Doug joined, the company was using its ICO token generation event and was incredibly successful. He started in the company as an engineer and transitioned himself to leadership by making strategies. Later on, Mainframe’s CEO tapped him to run the company, which brought him to where he is now.
The Elevator Pitch
The Mainframe is an at-scale fixed-rate lending solution for people to get instant access to liquidity. People who are into cryptocurrencies and want to pursue the latest farming craze or like to purchase new assets while maintaining exposure to their bitcoins can do these through the help of Mainframe. It enables predictable returns and premiums that borrowers pay.
The Concept of Defi
The perception of Defi is to bypass banks or remove trustless intermediaries at the individual level. Doug clarified that perception varies from person to person. There is more transparency within the broader Defi space. Also, there is an increasing decentralized power that comes with specific trade-offs. People need to pay for their transactions, but they have the opportunity to audit what’s happening in their money.
In Doug’s judgment, Defy remains a speculators’ game until today. The Mainframe is still putting together debt instruments and options. People who are leveraging tokens are large players who are speculating on different aspects of the space itself.
Peer to Peer Lending
The rate is fixed for each transaction. Taking the case of a lender, if you have a bunch of USTC, without having plans to do anything with it, but you want it to grow. You can go to the Mainframe platform and purchase their tokens to earn a premium based on discounts and the face value of your tokens.
Mainframe’s Team size
For Doug, team size is a function of the business’ resources. The company’s team size is more focused now, with ten individuals dealing with the operations. They calculate well which bets to take, which innovations to pursue, and which to be a follower.