In 2022, destined to be turbulent, the DeFi world needs the rise of structured products - 3 structured product protocol analysis

Over the past two years, DeFi has built from scratch the financial infrastructure we see today, from lending platforms to exchanges and even algorithmic stablecoins, that make up the boom we see today.



But in all fairness, the wealth effect of DeFi and even the entire Crypto comes from three aspects - the growth brought by the early stage of the entire market, and many of the skyrocketing tokens are essentially super-early shares of their projects (even earlier than the seed round). ), and the token’s liquidity is tight in the market (so it goes up as soon as you buy it a little).



The effects of these three factors (especially the latter two) will fade sooner or later (although another wave of concept tokens will come out), the bubble will disappear, but the financial market will not disappear, and it will become more prosperous.



So in the long run, investors need to upgrade and use more powerful financial instruments to improve returns or reduce risk, such as structured products.



The so-called structured product is to combine different financial products into a new product. Therefore, structured products in the traditional financial market are generally customized for hedge funds or high-net-worth individuals, which is destined for ordinary people to be unable to participate.



DeFi’s structured products can fully provide these services, and there are no barriers to entry, and it is just beginning.



Three DeFi structured products are described below. Although they are still in very early stages, they have shown the possibility of replacing those traditional financial roles (such as machine gun pools, derivatives exchanges, etc.), because they do improve returns. Or better to reduce risk, although they are all built on top of this infrastructure.



Especially in a turbulent 2022.