According to TechFlow, the author YettaS thought about DeFi, CeDeFi, PayFi and StableCoin, and classified the current business models into four categories.

1. On-chain revenue model: Profit through fee sharing, such as DeFi three-piece set and Pendle. Such opportunities are gradually decreasing and need innovation.

2. On-chain and off-chain revenue arbitrage model: Profits are made through product fees, such as Ondo Finance, Ethena Labs, and BounceBit. Competition is highly homogeneous.

3. On-chain liquidity model: Profit from settlement fees, such as TRC20-USDT. It is necessary to find opportunities for on-chain liquidity splitting.

4. On-chain and off-chain liquidity and financial models: including USDT/USDC and Solana Lily Liu's PayFi, the core of which is the integration of payment and lending, increasing funding velocity and reducing costs.

The author believes that the difficulty and narrative of the four models are increasing, and the market has entered the third and fourth stages of competition. The market cannot be sustained by Tokenomics innovation alone, and differentiated competition is needed. The market will only give the highest premium to the first place, and the arbitrage object must be clearly identified. Each model has different requirements for the founder's ability and resources, and founder product fit is crucial.