Decentralized finance or as it is known DeFicontinues to develop and grow despite the decline in the crypto money market. If you want to invest in DeFi, you should pay attention to the seven trends we have compiled for you in this article.
Koinfinans.com As we have reported, it would not be wrong to say that DeFi was once a restricted area with basic lending and borrowing protocols such as Maker. Nowadays, it has hundreds of different platforms, all of which offer innovative ways to generate returns on digital assets. Despite the 70% decline in the cryptocurrency market, the DeFi industry continued to grow. DeFi researcher @Defilgnas highlighted seven upcoming trends for the industry.
1/ What’s next for #DeFi?🤔
I researched roadmaps of 25 major protocols to find out.
A lot is coming up: protocol-owned-stablecoins, new tokenomics, decentralization plans, The End Game for Maker and more.
These are the top 7 trends coming for DeFi 🧵
— Ignas | DeFi Research (@DefiIgnas) July 26, 2022
Roadmaps Should Be Well Researched
The researcher announced that he analyzed the roadmap of 25 different DeFi projects in detail in order to better examine the roadmaps for the future of the projects that appear in the industry. According to the researcher, it is very important to examine this roadmap before investing.
The Growth Rate of Protocol Stablecoins
Belonging to projects like NEAR, Tron and Waves stablecoin‘s were recently released. Considering that AAVE and Curve also have stablecoin plans, the plans of the players in the sector should be followed closely because the probability of the trend to continue is quite high.
Increasing Adoption of Tokenomies
The protocols will be the precursor to launching tokenomics with vote deposits. In this model; Tokens have to be locked for a certain period of time, which encourages long-term participation. Planned tokens from Yearn Finance, Synthetix, and PancakeSwap are already in place.
Decentralization Plans
As projects achieve financial sustainability, community and regulatory compliance, they will also seek to reduce their centralization. Also, several DeFi projects are already working on it, such as dYdX, Ren, The Graph, Lido, and Maker.
Starting Replication Protocols
Many DeFi protocols are completely overhauling how they work to keep up with markets and competition. Version 3s and 4s, Compound, Synthetix, Yearn and dYdX You can observe this situation directly.
The Future is in Multi-Chain Projects
The fact that DeFi protocols interact with each other across multiple chains and networks represents a critical step. Researcher, compound, SushiSwap and Ren is working on multi-chain strategies.
Increasing Impact of Uniswap V3
More protocols will be integrated with Uniswap’s concentrated liquidity in v3. For example, Kyber Network launched KyberSwap with similar features and multiple tiers of liquidity providers.
Increase of DeFi Token Usage Scenarios
DeFi tokens doing more than just staking now also represents a significant step forward, so the introduction of advanced tokenomics is likely. Chainlink, PancakeSwap and Maker are planning to upgrade their tokens.
Variable DeFi Transparency
The researcher concluded that the transparency created by the teams is very different. Yearn Finance noted that Maker and Synthetix have very clear roadmaps, implementation details and excellent communication. However, he also noted that Uniswap is one of the “most closed” ones.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.