Thread by @mrjasonchoi

Retails are coming to DeFi.

Core to my 2021+ DeFi thesis is the idea of vertical and horizontal integration as platforms fight to retain this new inflow.

This can happen in a few ways:

https://twitter.com/william24931283/status/1346515631416328193

1/ Existing popular product with brand awareness builds synergistic offerings to cross-sell users (and jack up TVL).

This is a massive opportunity for blue chips like @UniswapProtocol.

@SushiSwap saw the opportunity and is taking the first step.

2/ This is also what @1inchExchange @AlphaFinanceLab are doing.

Simple product first (aggregator, levered farms).

Then cross-sell new products. @iearnfinance was somewhat like this but imo they fragmented value capture to too many tokens and diluted brand equity too soon.

3/ DeFi collateral is transient.

To make it sticky you need to make users not bother to leave.

Why do you think bank sales rep spend every customer service call shilling you shit you probably don’t need?

4/ The entire DeFi space knows this.

@0xProject has built @matchaxyz

@AaveAave has credit delegation on top, @aavegotchi on the side

@synthetix_io has @dHedgeOrg on top.

These are not product features; these are separate *products*

5/ The logical conclusion != all DeFi protocols become neo-banks as endgame. That’s reductive.

But first step will resemble banks.

The question = whether protocols just build their own protocols or leverage composability (eg @compoundfinance + @saffronfinance_ fixed yields)....

6/ ...and how much efficiency gain you have from composing vs. how much product control you give up

7/ My current bets (subject to conviction revision based on development) to get exposure to this thesis:

- @AlphaFinanceLab
- @1inchExchange
- @SushiSwap
- @saffronfinance_

8/ It’s also possible for internally integrated projects to compose externally !

https://twitter.com/alphafinancelab/status/1347164577755090945