Hi, ladies and gentlemen, welcome to Uncle Cat’s Coin Talk. Uncle Cat was invited to participate in the Plaza event to share with you relevant content about DeFi. Today is the first article, which will take you to re-acquaint yourself with the future mainstream financial ecosystem we are familiar with - DeFi.
1. What is DeFi?
When it comes to DeFi, many people are familiar with it. Everyone knows about decentralized finance. But do you know the significance of DeFi to the financial system?
The core of DeFi is to reshape our understanding and use of traditional finance. By providing permissionless, transparent and accessible financial tools, it reshapes the financial ecosystem and gives the financial market more unlimited possibilities in the future!
2. The current trend of DeFi!
DeFi was the core hot spot that launched the last round of bull market. Although many people became relatively calm after the FTX incident, after the crisis, we can still see the strong potential and future of DeFi.
During this round of the longest bear market in Bitcoin's history, especially after the FTX crash last year, many currencies including Bitcoin have performed poorly, but the total locked value in the DeFi field has been growing steadily, which many people may have overlooked. But this also shows that although there have been crashes, everyone still recognizes the potential and future brought by DeFi attributes, and also recognizes its wealth-making attributes.
From the current perspective, the active trend of the DeFi sector, from DeFi itself, to liquidity pledge LSD, to physical pledge RWA, decentralized exchanges, lending platforms, market forecasts, and even the recent LSDFi - liquidity pledge finance, to this year's hot Bitcoin ETF, etc., we can see the core and shadow of Defi. DeFi, which combines financial attributes with the decentralization of blockchain, has brought us not only changes in the financial ecology, but also changed the traditional financial thinking mode.
DeFi may not be the starting point of the next bull market, but DeFi will still be the peak point of the next bull market.
3. Future opportunities of DeFi!
The emergence of decentralized finance (DeFi) has broken many of the frameworks of traditional finance, allowing more traders to participate without distinguishing between regions and identities, and allowing equal financial services to be enjoyed in any corner of the world. At the same time, the potential and future of DeFi have also brought unlimited imagination to more of our crypto world participants, making the financial market more flexible and changeable, and the wealth-creating effect more powerful, making traditional investment methods more interesting. It has also brought more traders and funds to the entire blockchain, and has brought unlimited future and possibilities to the entire blockchain.
Including the current rapid growth of AI technology, I believe that combined with the attributes of DeFi, it may once again stimulate the future potential of decentralized finance.
4. Challenges that DeFi will face in the future!
DeFi is favored by more and more people because of its potential and youth, but the challenges faced by DeFi are also huge. From technological innovation, to the security of the entire decentralized finance, to the technical security of preventing hacker attacks, to the core issue currently faced by the entire blockchain - supervision, etc. These are the challenges that DeFi will face in the future.
DeFi is more like a young person. The growth of young people requires constant adjustment of routes, constant correction of their shortcomings, constant learning of other advantages, constant adaptation to the growth environment, and constant response to the ever-changing market conditions. DeFi needs to face a lot in its growth, but this also indirectly shows people's expectations for the potential explosion of DeFi in the future. Being used to challenges and continuous innovation is also a motto of the entire blockchain culture.
Finally, let’s summarize:
DeFi is like a child, but also a double-edged sword. Under good guidance, in a good education and learning environment, DeFi may make the future financial world more colorful. However, if it is not properly regulated, exploited by criminals, or if it deviates from the right path during learning, DeFi will still have a huge destructive power.
DeFi can create many wealth myths, but it can also create many losers. We should face DeFi with caution, understand it, and know it. Only by progressing and growing with it can we truly use DeFi well.
Well, the above is my personal opinion and sharing on DeFi. Thank you to every friend who follows Uncle Cat and every fan who supports me.
