1 / For anyone stumbling upon DeFi wanting to know WTF happened this summer - hereβs a high-level summary
2 / liquidity mining π©βπΎπ©βπΎπ©βπΎ
A short-term growth strategy, where users provide liquidity in exchange for rewards, with the goal for incentivizing long term stickiness
Designs vary by timing, $ amount & recipient
COMP was the OG -- but liquidity mining is now table stakes
A short-term growth strategy, where users provide liquidity in exchange for rewards, with the goal for incentivizing long term stickiness
Designs vary by timing, $ amount & recipient
COMP was the OG -- but liquidity mining is now table stakes
3 / CeFi π DeFi
Binance and FTX leaned in with Binance Smart Chain and Serum
Jump Capital is market making for DeFi
Coinbase is listing tokens faster than ever (aka $UNI) and has a rumored upcoming token listing product.
More to come
Binance and FTX leaned in with Binance Smart Chain and Serum
Jump Capital is market making for DeFi
Coinbase is listing tokens faster than ever (aka $UNI) and has a rumored upcoming token listing product.
More to come
4 / Composability!!!
Audited protocols are being used as open standards (e.g., Uniswap, Compound, Balancer), stitched together, forked & iterated upon
the beauty of open source innovation is *here*
[insert lego meme]
Audited protocols are being used as open standards (e.g., Uniswap, Compound, Balancer), stitched together, forked & iterated upon
the beauty of open source innovation is *here*
[insert lego meme]
5/ Forking goes mainstream
Fast forks, pump & dump forks, sustainable forks. Thereβs a new fork daily
@ianjohnlee did a great analysis on fork defense strategies bit.ly/35Rzmmm
Fast forks, pump & dump forks, sustainable forks. Thereβs a new fork daily
@ianjohnlee did a great analysis on fork defense strategies bit.ly/35Rzmmm
6 / BTC comes to Ethereum
BTC on Ethereum is accelerating. appears that BTC wants in on DeFi yields
Likely to see lots more in the pegged assets category
BTC on Ethereum is accelerating. appears that BTC wants in on DeFi yields
Likely to see lots more in the pegged assets category
7 / DEXes are winning
AMMs provide early liquidity for projects and became the playground of DeFi
chart from @MessariCrypto @jpurd17
AMMs provide early liquidity for projects and became the playground of DeFi
chart from @MessariCrypto @jpurd17
8 / Risky business
The compounding risk is understated and not yet well understood [unaudited code, regulatory overhang, bugs, hacks, oracles]
The need for products like @nexusmutual @cozyfinance @blocknative has never been stronger
The compounding risk is understated and not yet well understood [unaudited code, regulatory overhang, bugs, hacks, oracles]
The need for products like @nexusmutual @cozyfinance @blocknative has never been stronger
9 / ELI5 via aggregation
YFI filled a market need - aggregation & optimization
Many others are in the game @parawap @1inch @raricapital @instadapp @totle
Weβll see bifurcation by market segment + strategy for retail + institutional investors
YFI filled a market need - aggregation & optimization
Many others are in the game @parawap @1inch @raricapital @instadapp @totle
Weβll see bifurcation by market segment + strategy for retail + institutional investors
10 / Fair Launch movement
Making it easier to:
(1) bootstrap liquidity
(2) distribute tokens without a presale
(2) generate revenue quickly
treats all users equally
Making it easier to:
(1) bootstrap liquidity
(2) distribute tokens without a presale
(2) generate revenue quickly
treats all users equally
11 / Gas fees edge out the retail trader
Defi was much smaller 12 months ago - the market is now flooded with DeFi whales & institutional investors
Fees make it a game of scale & serious trading optimization
Defi was much smaller 12 months ago - the market is now flooded with DeFi whales & institutional investors
Fees make it a game of scale & serious trading optimization
12 / Ok that was a lot - there is a ton to unpack for each point
but hopefully, this serves as a good recap & starting point!
What did I miss?
but hopefully, this serves as a good recap & starting point!
What did I miss?
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