The Unstoppable Growth of DeFi
- DeFi is changing how we think about traditional finance. It's not just about technology and finance coming together; it's a bridge connecting traditional financial systems with the world of cryptocurrencies. Join me in exploring how DeFi has evolved through different stages and is making significant progress in the financial industry.
👉DeFi 1.0 commenced with generating revenue by providing liquidity (LP - Liquidity Provider) in decentralized financial protocols. Users had the opportunity to invest funds and earn profits by contributing liquidity to decentralized transactions.
👉DeFi 2.0 represents a crucial advancement where profits arise from Real Yield, meaning actual earnings from holding assets. DeFi 2.0 protocols assist users in optimizing their earnings through staking, farming, and other investment strategies.
👉DeFi 3.0 marks the emergence of Revenue from Real World Assets (RWA), including tangible assets beyond the crypto realm. This is a substantial leap, as DeFi extends its scope to encompass assets like real estate, bonds, and various assets within the decentralized financial system.
📌The progressive development of DeFi has unlocked numerous opportunities and potential for those participating in the crypto market. However, it's essential to bear in mind that each step in the DeFi journey comes with its own investment risks.