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DeFi 2.0
The DeFi 2.0 ave.change is
0.48%
Last year we saw a surge in DeFi, which exploded the crypto space by adopting a liquid mining model. But with the exploration of fluidity mining mode, people gradually found the disadvantages of fluidity mining. This short-term incentive model can lead to excessive exploitation of projects and agreements by some liquidity providers, or even accelerate the demise of projects. In this mode, liquidity providers and long-term interests of the agreement are not consistent, which leads to the slow growth of DeFi. Of course, this is only one reason. In this context, the concept of DeFi2.0 is introduced, which is essentially a new change for defiI. DeFi2.0 changes the relationship between the contract and the liquidity provider through a new mechanism, and ultimately restructures the liquidity service itself. The first mention of "DeFi2.0" can probably be traced back to the developer of Alchemix, the loan agreement. Scoopy Trooples, the developer of the DeFi2.0, said in an online broadcast that the DeFi application, which is based on the first-generation protocol, can be regarded as the second-generation protocol, called "DeFi2.0", because it is innovated from 0 to 1 again. However, since DeFi players and developers do not accept such a classification, especially because DeFi itself is open to the concept of "Lego group", there is a wide range of disputes over what kinds of DeFi2.0 are acceptable, which makes the concept of "2.0" difficult to define. You probably need to figure out what DeFi1.0 is before you can understand it. We know that those early decentralized financial infrastructures made up the current DeFi scenario, for example, Decentralized trading app DEX (Uniswap, SushiSwap, etc.), lending app (Compound, Aave, MakerDAO, etc.), Stabecoin app (Curve), Liquidity machine tool pool app (Yearn, etc.), etc. At present, these applications have formed basic product functions and their respective economic systems. After at least two rounds of market tests, they have attracted a large number of users to use them and constitute the mainstream application direction of the current DeFi market. Since they are also constantly being updated and even linked to each other, such as the leveraged farming agreements created by DEX's liquidity pool, it is not accurate to say that they are "DeFi 1.0", more like the "1.5" era. According to Scoopy Trooples, if these early and now mature DeFi applications are innovated and other new products or mechanisms are created, these DeFi2.0 agreements can be categorized as "defiant 2.0". So, innovative product functions and new economic models are probably important characteristics of DeFi2.0. At present, some protocols are being classified into DeFi 2.0 in the market, such as the new feature set based on the existing mainstream DeFi protocol, such as Convex, a low-slip cross-chain protocol based on Curve, and OlympusDAO, a floating algorithm protocol with an innovative incentive mechanism on top of the original basic DeFi protocol. If from a user perspective, the scalability of 2.0 reflects the need improved DeFi players experience features, such as, improve the economic model of Token, reform DeFi liquidity of revenue farming methods, improve the utilization ratio of capital, can smooth shifting risk, with more reasonable shape and structure of community governance according to the change characteristics of the Internet and its products, "2.0" is more appropriate when user needs and experiences improve dramatically in iterations, such as the migration of Internet users from the Internet to the mobile web, or the replacement of touch buttons for keyboards on mobile phones. Before DeFi before become a supplement or alternative to the mainstream financial products, it is still in its early development, even well-known DEX, loan applications and stable currency, information technology application has attracted a lot of users interact with the capital and DeFi application, but the application is still in a state of relative maturity, also cannot reach the mainstream financial scenario of silky and security. Perhaps we don't need to worry about the DeFi upgrade number. For users, the most important thing is what new features are coming out of the DeFi protocol market, whether they can change the previous experience, and whether they can make their crypto assets more valuable. Of course, the pursuit of a new experience in the DeFi market is often accompanied by the pain of risk, and players can sometimes accidentally become cannon fodder for the "innovator" experiment, which is happening now. When the "DeFi2.0" concept was injected into the user's imagination, the increase of the so-called "2.0" representative tokens such as OHM (OlympusDAO) and CVX (Convex) gave the user another "jolt", and the surprise was followed by shock. Not long ago, rumors of OlympusDAO contract code problems caused the OHM to plummet from a high of $1,400 to $500. In addition, many DeFi2.0 applications are anonymous, so there are doubts about the technical ability to create members and the safety of the application code. These are common risks in the DeFi market, no matter 1.0 or 2.0. From the current operation mechanism of each 2.0 concept application, these applications have the meaning of "borrowing a chicken to lay eggs", DeFi "LEGO portfolio" feature potential security risks, liquidation risks in high volatility market, etc., are the "minefield" that users can not ignore. DeFi2.0 risks Because there are a large number of COMBINATIONS of DAos to DAOs in DeFi, there are greater risks of compositionability. For example, Abracadabra, if the agreement on the collateral goes wrong, it will go wrong. Therefore, we can see its potential risks as well as its advantages. In addition, DeFi2.0 does not guarantee that there is no rug pull, and there are always risks before there is a sustainable liquidity. Therefore, don't be confused by the concept of DeFi2.0, which is also full of high risks. DeFi2.0 essentially requires the improvement of DeFi's infrastructure layer. DeFi's infrastructure not only includes public chains such as Ethereum and basic Lego blocks such as DEX, loan and derivatives, but also includes the liquidity that supports these modes. The liquidity itself is an important infrastructure layer for DeFi to be sustainable. The DeFi2.0 core is to turn the fluidity into DeFi's infrastructure layer, and on this basis, DeFi becomes more sustainable. In this view, DeFi2.0 itself is the inevitable evolutionary trend of DeFi. DeFi is like a living organism that needs to grow and refine its parts to become a self-reinforcing and sustainable trend of technological evolution that can be independent of any intermediary.
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