#FutureofDeFi What should we pay attention to in the future of DeFi?

DeFi (decentralized finance) does not rely on old, inefficient infrastructure, but uses blockchain technology to build a financial system, provide transactions, borrow encrypted assets and other services, and has long become an indispensable part of the blockchain industry. .

DeFi1.0 is the initial stage of the rise of decentralized finance. It mainly completed the construction of the basic framework of financial services on the blockchain and introduced several key concepts, such as stable currency, AMM DEX, borrowing, and liquidity incentives. , incentive staking.

DeFi2.0 aims to solve the existing problems of DeFi1.0 while expanding its functions.

Notable developments and innovations in the DeFi 2.0 phase include:

DeFi protocol forks on BSC, Solana, Fantom and other public chains have surged. The emergence of cross-chain protocols has promoted asset bridging. The explosion of new public chains is due to everyone’s efforts to avoid the scalability issues of Ethereum;

Established DeFi brands such as AAVE, Uniswap, and Sythetix have begun to support other public chains;

The addition of Layer 2 solutions improves Ethereum’s scalability and reduces costs;

Build novel financial products based on the foundation of DeFi 1.0, such as derivatives, machine gun pools, DEX aggregators, etc.;

Attention is being paid to the development of decentralized autonomous organizations (DAOs), enabling communities to collectively govern DeFi protocols;

RWA, Real World Assets Real World Assets (RWAs), that is, the tokenization of real assets. RWA related concepts were first proposed in 2017. At that time, real estate, luxury goods and other assets were put on the chain, but they failed to take off in the end. However, over the years, with the development of DeFi, RWA related concepts have gained ground for development.

What are the projects related to the RWA track?

MakerDAO: In 2022, the co-founder of MakerDAO proposed the MakerDAO Endgame plan to introduce some RWA assets as collateral for the stable currency Dai. MakerBurn data shows that a total of 11 RWA projects have been introduced, with US$2.48 billion in assets as collateral for MakerDAO, accounting for 53% of its total assets and contributing 53.9% of its revenue;

AAVE: AAVE will launch the RWA market in 2021, allowing mortgage lending of real assets. Data shows that the Aave RWA market size is only US$76.65 million. However, with the launch of the stablecoin GHO, RWA will also be introduced like DAI;

Superstate: a new company founded by the founder of Superstate Compound, seeking to tokenize U.S. debt on Ethereum;

Centrifuge: Centrifuge was one of the first DeFi protocols to get involved in RWA, and is the technology provider behind protocols such as MakerDAO and Aave. Currently, Centrifuge has a total of 17 RWA asset pools with a total value of US$230 million;

Ondo Finance: Ondo Finance is a decentralized investment bank. It mainly invests in U.S. listed currency funds off the chain. It cooperates with the decentralized lending agreement Flux Finance on the stablecoin lending business. It launched a Tokenized fund at the beginning of the year to allow stablecoin holders to invest. Bonds and U.S. Treasuries;

Maple Finance: Maple Finance’s mainstream business is loan agency/institutional credit agency. In April, it announced plans to launch a loan pool for investing in U.S. Treasury bonds and expand the loan agency model using real assets as collateral;

RealT: RealT is a compliant real estate tokenization platform established in 2019. It has processed more than 52 million US dollars in real estate tokenization, and more than 970 houses have been tokenized on the RealT platform;

Toucan: Toucan converts carbon credits into Tokens and uses DeFi to promote the transaction of carbon credits.

Is DeFi really dead? In fact, LSD has already exploded as early as the beginning of the year, and the concept of RWA has been constantly mentioned in recent months.

Do you think LSD and RWA will be the future of DeFi? Or is there another possibility? Welcome to comment and discuss.