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Krypton CEO Michael Nowotny On How Krypton Is Using Chainlink To Attract More Institutions To DeFi

The 100+ expert speakers at this year’s SmartCon included founders of influential protocols in the Chainlink ecosystem. To showcase their thought leadership during SmartCon’s 2022 event, September 28-29 in New York City, Nasdaq TradeTalks host Jill Malandrino filmed a two-day interview lineup with featured presenters. 

After speaking with GFX Labs co-founder Getty Hill, Malandrino sat down with Michael Nowotny, co-founder and CEO of Krypton, a decentralized exchange protocol designed to minimize DeFi’s inefficiencies with the goal of making DeFi simpler and more cost-efficient than traditional finance. 

In Nowotny’s view, a primary hindrance to DeFi’s growth is lack of institutional involvement due to high transaction costs.  

“If we want DeFi to become the global center of trading, then we need to make it attractive for institutions to come in,” he explained.

Nowotny said Krypton takes a new economic approach to solving DeFi’s inefficiencies with a novel mechanism made possible by doing computation on Chainlink’s decentralized oracle networks. 

Because Krypton’s protocol is so “computationally demanding,” he explained, it wouldn’t be possible on any existing blockchain. By moving its computation off of the blockchain and onto the Chainlink Network, Krypton only needs to use the blockchain for commitments and settlements.

“What many people don’t realize is Chainlink does not only bring off-chain data onto the blockchain, but it also allows us to mix and match different decentralized ecosystems of all kinds.”

Nowotny said this will “enable a massive expansion of the design space,” broadening the horizon of possibilities for web3 designers on an organizational level.

He credited Chainlink with not only facilitating Krypton at the protocol level but supporting its team since they won the first DeFi prize at the Chainlink Fall 2021 Hackathon.

“Chainlink has been supporting us since they discovered us at last year’s hackathon and they’ve been wonderful,” he said, highlighting the new Chainlink BUILD program for formalizing Chainlink’s effort to accelerate the growth of promising early-stage projects in its ecosystem. 

“They’re helping the next generation of web3 protocols realize their vision, and so we love them very much for that.”

Watch Jill Malandrino’s full interview with Michael Nowotny on Nasdaq TradeTalks.

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