I think if we wanted to have a clear intelligent definition of where you would put a dividing line between what a "DeFi 1.0" & "DeFi 2.0" would be it's:

DeFi 1.0 - tradfi concepts in trustless protocols.

DeFi 2.0 - Novel concepts enabled exclusively by trustless protocols

I think a lot of people are using it to just refer to the latest wave of defi products, which are having their day in the sun.

I think some of them are great and will be around long term, and some others, well... won't.

But, we're kidding ourselves if we think we can label it 2.0

When we talk about web 1.0 vs web 2.0 it was about a major fundamental change in the ownership of the voice.

It wasn't just media companies making sites anymore. You had a voice.

Web 3.0 is what we label this integration with blockchain and the web as it changes it again to provide not just a voice, but an ownership of the system.

DeFi has *rapidly* improved in the past few years in economics, governance, composability and efficiency.

Just about by every metric (except maybe UX where we lag behind like a lame horse)

But, I don't think we've really cracked a fundamental pivot yet.

I think we're scratching at it.

It could be in permissionless composability like @RariCapital is starting to play with with Fuse pools.

It could be in something like governance minimization & lack of external dependencies like we see @reflexerfinance providing.

But I think mostly we're really in DeFi 1.1

Don't get me wrong.

That 0.1 upgrade was good. Like *really* good. We've come a long way, but we haven't reinvented the game yet.

I think 2.0 will come in the form of either novel financial primitives, likely related to NFTs or information. (i.e. how we apply live time finance to something unique)


It could also come in the form of permissionless composability at an L1 layer.

I think if someone can crack the concept of an appchain like @compoundfinance is working on with Gateway then its pretty game changing as you're extending platforms without permission.

It could be something totally different.

I think we've already built the seeds of a dramatically better financial system, but that's the core of 1.0

I think we're yet to flip the game.

But, I think many of the devs and founders who will fundamentally change the game are well on that path now.

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More from @adamscochran

14 Oct

DAOs need to take a growth funnel approach to onboarding contributors, as I think there is a 5x-10x output opportunity here.

There is a huge gap in the ability of new users to onboard to contributing to DAOs and I think there is low-hanging fruit to fix that.

I think a great example here is @iearnfinance who is probably ahead of the curve in terms of having documentation and still if you aren't engrained in that community there are a lot of open questions you can't easily find answers to.

-What are the core components a strategy needs?
-Can partners launch their own compatible vault?
-Who gets paid, who doesn't?
-What is the process for proposing and voting on new features/strategies/vaults?
-Where is the list of work needing done?
-Are the docs up to date?
Read 25 tweets
9 Oct

Part of the reason this space has so many shitty "VCs" willing to use people as instant exit liquidity is this space feverously worships anyone who makes money, and thinks VCs are just for dry powder.

If the only way you vet investors is by assuming they have no value-add and seeing who gets simped the most on Twitter, then of course you're going to have a cap table filled with people happy to nickel and dime you.

Like lets face it, CZ could turn around, mint $10M in new BNB, blatantly dump it on the market and half of his followers would just say its for the good of the project.
Read 12 tweets
9 Oct

I honestly believe much of CT would happily cut of their nose to spite their face.

Look if investors had a heads up about the details of the airdrop and misused insider info, that is shitty.

But this is the only industry where teams give you basically free money and people are somehow pissed off if someone else got more than them.

Ribbon made a great product, with vaults of a great return, that gave you a massive airdrop.

That airdrop was flawed and may have been manipulated, but we all won out.

Did some people win out more? Yeah.

But does that mean you should hate and attack that team? No.
Read 9 tweets
8 Oct

Bloomberg (TV) reporting that a draft executive order has been circulating around the white house requiring federal agencies to study and come up with proposed regulation for crypto.

No specific text yet and no regulation, just a requirement for proposals.

According to Bloomberg it is contested even in the White House if it should move forward or not.

A really odd approach to this and something to keep our eyes on.

I wonder if these politicians know that they could earn more from retroactive airdrops than from the donations they get from banking companies?
Read 4 tweets
6 Oct

I was excited to hear Microsoft 11's event would include NFTs, but the NFTs are just coupon codes to buy Windows 11.

It also uses a weird corporate EVM deployed by "Eluvio" which claims to be a blockchain alternative to a CDN.

But, it doesn't seem to be something you can run a node for, so its really just a 'blockchain' running on private servers likely owned by the corp.

Claims its going to revolutionize how artists share content by requiring NFT tokens to access content.

But its not like the content itself is streaming from an EVM blockchain so...
Read 5 tweets
6 Oct

I think $DYDX has dramatically changed the market behavior.

It puts some critical new strategies on the table, and has a huge impact on the actions many market makers and bots seem to be taking. 👇

First, what's important to note is that DyDx has a different funding rate structure than a lot of the futures products in the market.

It's a more aggressive, but in turn much safer for the system, kind of calculation.

But, this makes for a huge delta in the rates, as can be seen in the 30 day avg chart below from Defi Rate.

Over 30 days, longing $ETH on DyDX 29x the FTX rate.
Read 16 tweets

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