How will DeFi evolve in 2022 and beyond?

Time:2021-12-24 Source: 1232 views DeFi Copy share

Most of the DeFi 2.0 protocols we have are trying social and algorithmic rules to formalize their capital deployment. The differences between these agreements are collateral, liquidity, incentives, governance tokens, and stablecoins.

In the words of Scoopy Troples, DeFi 2.0 provides three things:

Improve capital efficiency in the DeFi protocol: $TOKE will give the market maker a loan, and then the market maker will provide the other side of liquidity, then create the market/increase depth and profit from the spread.

Protocol control value/liquidity: $OHM is a pioneer in this area. They not only have a mining project, they also sell OHM to support the currency and buy all LP shares at the prices of $OHMDAI and $OHMLUSD.

Advanced fund management for DeFi agreements: The project will receive funds and deploy them in DeFi to increase revenue and income.
What is DeFi 2.0?

In the simplest terms, DeFi is an ecosystem through which various financial products can be used on the public decentralized blockchain network. DeFi opens these products to anyone, and users do not need to go through financial intermediaries such as brokers and banks.

As Sam Kazemian described: The DeFi 2.0 protocol holds assets on the balance sheet more efficiently, and deploys stablecoins, liquidity, incentives and assets through the thinking of token holders. DeFi 2.0 does not expect token holders to be just voters, but to create a platform with social coordination processes, mechanisms, and incentive mechanisms for production and deployment within the agreement.

Messari has created two major trends to push DeFi out of its comfort zone: LaaS and secondary agreements.

Liquidity as a service (LaaS) providers help the agreement solve the problem of liquidity mining addiction. Liquid mining is no longer attractive in DeFi because it is a permanent expense on the agreement balance sheet. It is beneficial for LaaS providers because they help various agreements buy liquidity from the market, and even rent liquidity in a cheap and high-quality way.
"Secondary" Agreement

These agreements attempt to automate, extend or enhance the existing DeFi model. The second-order protocol takes advantage of the combinable nature of DeFi. These agreements are also built on the existing DeFi infrastructure to enhance, automate or extend existing processes or models.

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