In the first half of this year, DeFi shed the limelight in the digital currency field, with locked positions exceeding 11 billion U.S. dollars in a short time, and the number of wallet downloads exceeded 5,000. However, with the recent black swan incident of SUSHI, users in the currency circle began to calm down and think about whether DeFi is a bubble in digital currency or a real wealth outlet. But judging from the current application of DeFi, this is just a small test of decentralized finance in the encryption industry. With the participation of large institutions and large trading platforms, DeFi 1.0 is about to end, the 2.0 era will begin, and the next wave of wealth The tuyere has quietly come to lead.
Beginning in July, the oracle project LINK has risen sharply from US$4, and has risen to a maximum of US$20 in just one and a half months, which is a five-fold increase. This has made many people mistakenly believe that DeFi has brought a bull market and have followed the latest DeFi projects. After Compound and Avae launched liquid mining, the amount of locked positions rose rapidly. After their tokens went online, they skyrocketed several times within a week. Driven by the FOMO sentiment in the market, retail investors began to rush into DeFi projects blindfolded, which opened the prelude to the golden age of DeFi 1.0.
In less than a month, various DeFi projects have sprung up. Among them, two key projects have pushed DeFi to a climax, one is YFI and the other is Sushiswap. YFI is a yearn community governance token, as a reward for those who use the yearn protocol, and adds liquidity mining function to this protocol. It can be seen as a smart bank built on Ethereum, due to DeFi mobility In sexual mining projects, the interest rates of different fund pools fluctuate greatly. The operation process of users manually selecting a fund pool with higher annualized returns is very complicated. Therefore, yearn simplifies this process. Users only need to deposit funds in yearn and pass yearn. By interacting with smart contracts, you can view the annualized rate of return of different lending platforms, and then automatically allocate funds to intelligently match the pool of funds with the highest rate of return for users.
YFI has only 30,000 tokens in total issued and is driven by community holdings. The price of YFI surpassed Bitcoin in less than an hour after it went online. The price quadrupled within a week, reaching a maximum of 44,000 US dollars.
The other is SushiSwap, which has been listed on multiple top exchanges in less than 100 hours after its birth, helping Uniswap increase its liquidity from 300 million US dollars to 1.6 billion US dollars. However, the founder of SushiSwap that appears afterwards will have approximately 2.6 million tokens in his hands. The black swan event of cashing out 18,000 Ethereum out of the game caused the price of SUSHI tokens to plummet, from 13.4 US dollars to 1.13 US dollars, down 10.8 times, and a torch burned DeFi completely. Coupled with the collective appearance of DeFi tokens such as DOT and CRV, people's dream of achieving rich wealth through DeFi is shattered, and DeFi 1.0 is over.
Recently, centralized exchanges launched aggregate mining, which directly promoted the DeFi market from the first stage of competition of "DEX issuance and doll incentive" to the second stage of "CEX as a traffic entrance, extending the utility of DeFi products". Compared with DeFi 1.0, DeFi 2.0, on the one hand, uses a centralized exchange as a traffic entrance, which can effectively lower the threshold for retail investors to enter the DeFi market, help more users directly access DeFi projects, and promote the project.
On the other hand, mining projects screened by exchanges are of higher quality; retail investors can directly participate in mining without the need for secondary market acceptance, which prevents DeFi projects from becoming a tool for large investors to harvest retail investors. In general, the opening of Defi 2.0 provides a more convenient channel for many users who are still standing on the periphery of Defi, allowing more users to participate in Defi, thereby promoting the development of Defi.
With the completion of the Ethereum 2.0 version upgrade, the reduction of gas costs and the increase in the speed of recharge and withdrawal, I believe that more large institutions and platforms will participate in DeFi, and that may be the advent of the DeFi3.0 era. At that time, the popularity of DeFi will also boost the price of Ethereum, so now is the best time to buy Ethereum. However, buying Ethereum spot is not as good as buying BitOffer's Ethereum ETF fund. It has added an intelligent dynamic position adjustment mechanism, and the return is more than 3 times higher than the spot, up to 17 times.