The rise of DeFi
The DeFi (decentralized finance) boom has gradually spread to the blockchain circle since June this year.
DeFi (Decentralized Finance) represents decentralized finance, which mainly provides almost all financial services that traditional financial institutions and centralized institutions (usually banks) can provide through blockchain. In short, DeFi is a blockchain-based financial service that integrates traditional financial services and uses the unique functions of blockchain to create new services or financial derivatives.
Despite the emergence of bubble currencies such as uncle series (yfi, yfii, yfv), food series (sushi, kimchi…), etc., it does not prevent DeFi from still becoming a big wave of “accepting” BTC and ETH. The reason why it is respected by everyone is due to its protection of user privacy, improved service system fault tolerance, and real-time cross-domain transactions.
Its more important significance is that it reduces the evaluation of users’ financial needs by a centralized third party, and can conveniently provide funds for users in financial difficulties.
Cake carnival, DeFi decline
The recent decline of DeFi has become less enthusiastic in the market, and many currencies have begun to slowly pull back. There are too many hot spots in the market, and funds are scattered in various ways. The collapse of the previous DeFi currency is the same as the future mainstream currency is likely to pull back.
In addition, the BZX theft incident, 0DAI incident, etc. also reflect the immaturity of the current DEFI industry, and in the face of the decline and rise of batches of DEFI projects, even New Leek has begun to doubt the usefulness of DeFi projects.
According to Dappreview data (it is recommended that friends who study DEFI can go to Dappreview to view the corresponding data, which is relatively comprehensive), currently DEFI includes lending, reserve DEX (Ethereum flash swap model), order book DEX, payment, stable currency, prediction market, There are seven major categories of financial derivative products, and all DEFI projects (basically all currently operating projects) included in it include 25, with a total locked value of 751,084,393 US dollars, while the Ethereum lending project MAKER accounts for 41.86 of all locked positions. %.
In fact, the current volume of DEFI is still very small, and the loan funds are in a dominant state in the DEFI field. Although the current distribution is not healthy, it is gradually developing towards a trend of one super power.
DeFi that goes high and low
Although the history of DeFi is not long, it is very popular. It has been nearly 3 years since the birth of the first DeFi application MakerDAO. MakerDAO was launched in December 2017, targeting the stablecoin market. In just half a year, the amount of locked positions on the chain exceeded US$150 million.
Since COMP triggered the DeFi boom in June, various “gold rushing” methods have emerged one after another: grab the first mine, grab airdrops, move bricks for arbitrage, and then issue counterfeit coins and all kinds of scams… Among them, there are both normal investment behaviors and risks. The speculative behavior of others, and even the behavior of profiting by doing evil.
With the success of MakerDAO, DeFi applications began to proliferate, and the development direction of DeFi has also undergone subtle changes. In 2018, Compound, dYdX, Uniswap, Dharmar, Augur, and WBTC went online, “spinach” and “stable currency” broke through and became a form of competition for “Colosseum”, but it is difficult for everyone to see its future.
DeFi lock-up volume. After DeBank, Synthetix, DDEX, dForce, Veil, Kyber, InstaDapp, Loopring, Balancer, and Aave have been launched one after another. So far, DeFi has developed most vigorously with three types of agreements: asset aggregator (machine gun pool), Farming lending, and DEX. According to statistics from DeBank, the total amount of locked positions based on Ethereum’s DeFi protocol on the entire network is as high as US$11.773 billion.
Dilemma and rise coexist
DeFi is a highly competitive capital redistribution model . While reducing market access barriers, it raises the efficiency of competition among market participants to a new level, promotes healthy competition, and improves market efficiency. However, apart from asset agreements and stable currency applications, there is no clear development and landing project yet to be seen.
Throughout the DeFi project, it is important to understand the market demand, gameplay, and mechanism. The core should not be whether the project is profitable or not. A healthy economic flow is a necessary condition for long-term development. At present, the DeFi token economy is inadequately connected with actual business, and the initial cost is generally too high, and there is no continuous positive feedback, which makes the cost of “trying” more and more expensive.
Confused by the over-heated appearance of DeFi, there are still a large number of unknown projects going online or dying under the concept of DeFi every day. In general, projects in this wave of DeFi have a high probability of reducing their decline to zero, but this does not stop users from participating. enthusiasm. In fact, the high cost of trial and error is inevitable. Concentrating on real business is the only way for DeFi to move from virtual to reality and from underground to the masses.
DeFil’s toddler
On September 22, Filecoin project leader Colin mentioned the concept of FIL+DeFi=DeFil at the SpaceRace1 celebration, which mainly includes: FIL mortgage loans, which requires a series of applications to enable FIL holders to use the loan platform on Ethereum Lend FIL to other stakeholders; build a miner market, allowing miners to provide prices and customers to browse the market.
Of course, this concept is not the first time it has appeared, and the government has mentioned this idea in Slack before. The emergence of DeFil first alleviated the urgent need for miners to lack collateral after the mainnet was launched, which is conducive to the growth of the Filecoin network and allows borrowers to profit through DeFi. Killing two birds with one stone may also become a model for the mortgage market.
At the same time, using the trading market and customer browsing needs to root the financial value of FIL is another important action of Filecoin-striving to maximize the utilization of tokens and economy. However, how long it will take for this project to be realized is a long way to go.
The circle ecology rises from the world
Different from DeFi, DeFil serves the Filecoin project, which has its own real business needs-to provide real and effective storage and retrieval of value data . At present, Slingshot in the SpaceRace2 phase is advancing this development.
According to the Slingshot rules, there will be a large number of applications and UI displays after the phased test is over. Whether it is retrieval and access of audio, video, graphics, and documents, these are all calls to present complete data.
In the future, the Filecoin ecosystem will harvest more applications based on real demand scenarios. With the development of the FIL economy, combined with the concept of DeFi, DeFil will never stop at loan mortgages.
More usage methods will inevitably boost FIL’s future performance in the market, attract more people, applications, and public chains, and build more consumption scenarios.
Decentralization is on the way
Either DeFi or DeFil, as part of Web3.0, the direction of differentiation and centralization to break barriers is the same. Technical dilemmas will no longer be the biggest obstacle to its realization. How to reconstruct and present Web2.0 in Web3.0 and open up people The interaction with the program is a topic that needs to be discussed in depth again.
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