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DeFi has been one of Ethereum’s key growth areas since 2019. Other competing blockchains are also building DeFi products but at a much slower rate. DeFi’s user base on Ethereum is still tiny, with an average of over 40,000 monthly users, and 90% of these users use decentralized exchanges. The number of active projects, i.e., with more than 50 daily users, almost doubled in 2019, while the developer team is building new products and establishing new services more and more. Get a raise. Today, let’s review with Omatech Team the key issues surrounding DeFi’s borderless state.
Since its inception, the DeFi space has been dominated by SAI/DAI, the decentralized stablecoin minted in the MakerDAO ecosystem, which released its MCD (Multi-Collateral Dai) in November 2019. Since then, the migration from SAI to DAI has been happening at a faster rate, an estimated 64% of the supply has been converted (as of 31 December).
Incorporating USDC into multiple DeFi platforms has challenged DAI for reasons such as more abundant supply, varying interest rate dynamics, and higher anchor price stability.
Lending platforms like Compound are increasingly challenging Maker dominance, as measured by the total value of collateral locked in DeFi, currently at ~50% (compared to over 90% at the start of 2019).
Decentralized exchanges “2.0” also increased in volume. Uniswap is already used by more than 19,000 users, generating a total annual revenue of $390 million. Similarly, Kyber has more than 35,000 users and annual revenue of $387 million.
In 2020, we expect new developments of Ethereum-based DeFi staking mechanisms (e.g. derivatives, decentralized initiatives, including ERC-20 USDT), to become a fundamental building block versions of DeFi and Alt-DeFi to gain momentum from reasons such as more prominent cross-chain interoperability solutions.
DeFi (Decentralized Finance) has become one of the most important areas for Ethereum, with over 100 projects and teams building applications and protocols in 2019.
Binance Research began in June with a series of reports focusing on Decentralized Finance (“DeFi Series”); This third report discusses recent developments and critical stories in the DeFi space, mainly focusing on Ethereum, although other blockchains are also considered.
Most of the data used in this report is provided by DApp.Review, one of the new members of the Binance ecosystem.
Please read also DAppReview’s annual overview of the state of DApp, which includes high-quality insights into all areas of decentralized applications such as Game, Social, and Casino.
1. DEFI’s growing importance in Ethereum
As illustrated in our report of the coding world (tokenization), the application range of Ethereum is wider than other blockchains. However, its main focus has switched to exchange and financial applications 1, as discussed in our previous report on DEFI based on Ethereum.
DEFI includes trading services (decentralized) and financial applications such as loan and loan markets, asset management services and payment solutions.
Chart 1 – Ether price (ETH) in USD in 2019
In 2019, the price of Ether fluctuated in the $100-350 range, with an average price of $173.
To date, most decentralized finance ecosystems have been built on Ethereum.
Chart 2 – Unique users monthly in Ethereum DeFi in 2019
In 2019, the number of unique DEFI users ranges from 40,000 to 60,000.
However, there is a significant difference between the number of users for financial applications (for example: loan platform) and trading services (i.e. token trading platform).
Chart 3 – Only monthly users in Ethereum Defi: Exchange compared to Finance in 2019
The number of monthly unique users was 34,244 users for decentralized exchanges and 4,649 for financial applications as of January 20192.
During 2019, the number of DEX users increased and peaked at 48,934 in August 2019, before falling back to near initial levels, with 34,033 users recorded in December.
On the other hand, the number of users for financial applications has not stopped growing since January. In August, these applications reached 10k monthly users; in December, 25,925 single users were recorded using decentralized finance applications on Ethereum.
Figure 4 – On-chain DeFi activities related to Ethereum DApp industry based on USD volume
This chart represents all on-chain activity, including some exchanges that are not completely decentralized (e.g. IDEX).
As illustrated by the chart above, more than 90% of the total on-chain volume for Ethereum-based DApps comes from DeFi-related applications: DeFi has been the growth driver of Ethereum in 2019, from a user perspective. use.
In short, Ethereum and DeFi have become a double-headed monster, each leading the growth of further development in the rest. The main characteristics of the interactions are identified in the next section.
2. Exploring the Inners of Ethereum DeFi
As depicted in Table 1, the total number of single users per platform varied greatly in 2019.
Table 1 – Number of single users in 2019 per platform
|
Nền tảng |
Số lượng người dùng |
| 35.570 | |
|
21.424 |
|
|
19.161 |
|
|
17.994 |
|
|
10.741 |
|
|
3.694 |
|
|
3.101 |
|
|
3.007 |
|
| Fulcrum |
853 |
Nguồn: DApp Review,
Kyber is the most used project in DEFI, with a total of 35,570 only users in 2019.
Compound is the second most popular project in the DEFI and leading in the “Financial” extra category.
However, these figures do not necessarily illustrate the overall use of some basic assets provided by some protocols. For example, dai can be used (for example, transactions, payments) without interacting with smart contracts MakerDao. Similarly, CTKEN (Compound) and IToken & Ptoken (Fulcrum) can be exchanged outside the designed protocol. When these tokens are circulated, there will be a statistics to closely monitor the average daily transactions and the number of active addresses.
2.1 USDC: The opponent of Dai
The platform of DEFI, Dai, and decentralized Stablecoin is cast in the MakerDao protocol, which was once the center of DEFI.
However, in 2019, USD Coin (USDC), Bronze Stablecoin was mortgaged by the French money (Fiat) released by the Center Corporation, officially became a rival of Dai.
Chart 5 – USDC supply and wrong / long -term supply in 2019
As illustrated in chart 5, the gap in total supply between USDC and DAI widened rapidly in 2019, in part because DAI has a single collateral constrained by a 100 million supply cap (which plays the role of a 100 million supply cap). is the debt ceiling for the Maker ecosystem). However, the protocol voted to increase the supply cap only in November, raising it to 120 million. Supply increased for the first time since 2018 when it increased to the ceiling from 50 million to 100 million. Meanwhile, USDC supply increased from 261.3 million to 518.5 million in 2019, up +98.4%. Meanwhile, the total supply of SAI + DAI only increased by +60.4% YoY, from 69.6 million to 111.6 million.
Figure 6 – Analysis of DAI / SAI as of December 31, 2019
Based on the growth of USDC’s total market capitalization, the use of USDC as collateral also increased steadily in 2019.
Over 30 million USDC has been made available exclusively for the Compound protocol, representing more than 25% of the value of all DAI/SAIs in circulation, as of December 31st.
Figure 7 – Evolution of Total USDC Locked in Compound
Compound added USDC support on May 23. The number of USDC supplied to the protocol increased rapidly during September, with the total amount sent to over 30 million $C. Since then, the platform remains at this level.
However, the greater total USDC supply is not necessarily the only reason for the increasing popularity of USDC in the DEFI world.
USDC also shows higher price stability in 2019, as illustrated in the chart below.
Chart 8 – Daily Closing Price and USDC in 2019
Finally, the long exploitation requires a change cost (paid by a stable fee for MKR holder), while the USDC mining does not require more negligible small fees (from CENTRE) . Stable fee is deeply discussed in sub -section 2.3.
2.2 MakerDao is challenged by multi -digit growth in compound and synthetix
As the supply continues to increase (see item 2.1), Maker himself also shows positive growth of his collateral value.
Chart 9 – Development of the total value of mortgaged assets in MakerDao (in USD)
The total value of collateral in MakerDao increased in the first half of 2019, due to the corresponding ETH price. Similarly, it decreased in the second half of 2019. However, many ETH was added to the foundation and supply of the wrong (and then the wrong + dai) also increased. As a result, in 2019, the total value of collateral in MakerDao increased from US $ 249 million to US $ 342 million, up +37%. Meanwhile, in 2019, ETH price decreased by -2%.
However, despite the growth of the total mortgage asset locked in MakerDao, its “defense” decreased in 2019, from ~ 90% in January 2019 to less than 50% in December.
Chart 10 – The dominance of MakerDao’s history (at the value of the collateral is locked in USD)
Chart 11 – The value of the total mortgage assets with compound (in USD)
The USD value of mortgaged assets in compound increased from $ 13.4 million at the beginning of the year to $ 104.7 million at the end of the year. This shows that the annual increase is +678%.
Chart 12 – The value of the total mortgage assets in Synthetix (in USD)
Even more impressive, the total value of collateral of Synthetix transferred from $ 1.6 million on March 1 to more than $ 160 million (EOY), due to SNX price, Synthetic Network token increased at speed.
So far, the main asset is cast in the Synthetic ecosystem is SUSD (Synthetic USD), mainly supported by SNX token. As of December 31, the supply was about 11 million.
However, SNX has no high liquidity (based on the data book data) as two collateral is eligible in the MakerDao ecosystem: cryptocurrencies like Bat and ETH. Therefore, it is still necessary to see how the system will work with high volatility of SNX price.
However, the total value of collateral in other small DEFI platforms also increased significantly in 2019, although the price of ETH is lagging behind the legal term (see chart 1).
Chart 13 – The value of the total mortgage assets with FULCRUM / BZX (in USD)
bZx shows moderate but steady growth in the total value of collateral locked on the platform. Just started in June 2019 with no dedicated collateral, its collateral value has rapidly grown to over $4 million in just seven months.
Figure 14 – Evolution of the value of total collateral in Nuo Network (in USD)
Nuo Network, a decentralized deposit trading platform, has a rapid growth in total mortgage assets in the first six months, with the highest level of over 17 million in July and August. , the total mortgage asset is locked steadily, partly due to the decrease in the price of the property.
2.3 High volatility and spreads in the DeFi interest rate market
Table 2 – Compound Borrowing and Lending Interests for Cryptocurrencies as of 12/31
| Tài sản | Lãi suất cho vay (APR) | Lãi suất vay (APR) |
| DAI | 3,97% | 4,16% |
| USDC | 3,93% | 9,34% |
| ETH | 0,01% | 2,20% |
| WBTC | 0,75% | 6,11% |
| ZRX | 0,11% | 3,19% |
| REP | 0,01% | 2,12% |
Source: LoanScan, Compound.
According to the table below, interest rates change significantly between assets. For example, 0x token (ZRX), Augur (Rep), and Ethereum (ETH) display the lowest annual average annual loan interest rate. In contrast, only ETH and Rep rates have the lowest loan ratio (2.20% and 2.12%) because the difference is much higher for ZRX. Stablecoins such as Dai and USDC display the most critical loan interest rate and lending.
The horizontal method is equal to the guaranteed interest rate indicating that ETH and other cryptocurrencies may be lowered.
On the other hand, sometimes, the implementation of specific trading strategies for ETH and BTC (via WBTC) is even lower than many centralized exchanges (e.g., Binance).
However, liquidity (the depth of the order, volume) on the centralized exchanges is still much higher than on the decentralized exchanges.
Figure 15 – USDC loan interest rate (%) from June 2019 to December 2019
Source: LoanScan.
Borrowing rates on USDC have been falling since June 2019. While dYdX rates fluctuate over more important maturities, borrowing rates on USDC are almost always significantly lower than on Compound.
Figure 16 – USDC lending interest rate (%) from June 2019 to December 2019
Source: LoanScan.
USDC lending rates have been decreasing gradually and steadily since June 2019. While the spread between Compound and dYdX is much lower than borrowing rates, dYdX USDC lending rates again show volatility. Higher dynamics than Compound.
Figure 17 – SAI loan interest rate and SAI stabilization fee (%) as of 11/18/2019
Source: Loancan.
The stable fee set by the MakerDao Management Board is mostly higher than the market loan interest rates on Compound and DYDX, with compound loan interest rates continuously lower than stable fees until mid -September.
Meanwhile, DYDX shows that the loan interest rate increases sharply because of the sensitivity to the interest rate formula.
I can explain this stable interest part in several ways. First, I give the stable fee ratio to periodic voting (weekly management votes), while interest rates on compound and DYDX always exist and reflect market dynamics in real time. Therefore, users must price according to the volatility they may face in open lending pools. In addition, when there are more and more intelligent contract insurance platforms such as Nexus Mutual and derivative protocols such as UMA protocols develop, users can have more options for pricing this risk in the exact chance in the future.
However, when the launch of a multi-mortgage (MCD) approached, the stability fee quickly dropped below the open exchange rate on compound and dydx.
Chart 18 – Lending interest rate (%) as of November 18, 2019
Source: LoanScan.
Similar to the opportunities described in our previous report, this mechanism also creates arbitrage opportunities. Specifically, ETH holders can borrow DAI from dYdX and deposit it to earn Dai Savings Rate (DSR) (e.g., through Oasis), which is higher than the interest rate on loan.
Figure 19 – Dai Savings Rate (DSR) and dYdX DAI loan interest rate since November 2019
Source: Loancan.
Although the DEFI increases in scope, its market size is still tiny, and therefore, the DEFI interest rate move depends heavily on the specific factors of the platform (for example, different loan and loan environments, fee structure, and so forth).
2.4 The development of “2.0 decentralized exchange.”
In 2019, many decentralized exchanges showed rapid growth in daily volume.
Chart 20 – Kyber’s daily trading volume (in USD)
Source: Kyber.
Kyber showed that its volume increased in 2019, with the highest level in June, July, and at the end of November (daily volume increased sharply by $7 million).
Besides, this platform also increased in the value of the total mortgaged assets. As of January 1, 2019, Kyber is worth about half a million dollars. At the end of 2019, the total locked value was ~ $3.4 million.
Chart 21 – Total daily trading volume of DEX based on 0x protocol (in USD)
Source: 0xtracker.
Notably, 0xprotocol-dex includes raday relay, ddex, imtoken (ex-tokenion), parades, and deeversifi3. The synthetic trading volume of the DEX based on 0xprotocol has increased since the beginning of 2019. In 2019, they displayed a total daily average volume of 702 thousand USD.
Chart 22 – Uniswap’s daily trading volume in 2019 (in USD)
Source: DAPP Review.
Uniswap also has an impressive growth in the value of the total mortgage assets. As of January 1, 2019, Uniswap is worth about half a million dollars. At the end of 2019, the total locked value was ~ 28 million USD.
Despite impressive growth models in 2019, Uniswap and Kyber are still ranked after OASIS (operated by Maker) and IDEX (Request KYC), two of the oldest DEX Ethereum, in terms of annual volume.
Table 3 – Annual mass on DEX based on Ethereum (in USD)
| Name | Annual mass (USD) |
| IDEX* | 853 million USD |
| Oasis | 498 million USD |
| Uniswap | 390 million USD |
| Kyber | 388 million USD |
| 0XProtocol DEXs | 256 million USD |
Source: DAPP Review, Dune Analytics. * IDEX Request KYC
Although Ethereum is the main foundation for DEFI builders, Blockchain developers, “not Ethereum” has also been working on DEFI applications and protocols.
3. DEFI replaced (Alt-Defi): Besides heterogeneity, latency is a crucial factor
This section will explore “Alt-Defi”: Defi space instead, outside Ethereum. ALT-DEFI applications run on many blockchains, such as EOS, Binance Chain, Bitcoin, Cosmos, and so forth
Regarding the current state of Defi’s Bitcoin, they relate the main application to payment.
Specifically, solutions have been developed to improve Bitcoin’s expansion ability for small payments. The most prominent example of this is the Lightning Network, acting as a second layer for Bitcoin.
Chart 23 – we calculate Daily Lightning Network Power Growth in BTC (left axis) and USD (right axis)
It isn’t easy to estimate the exact data for Lightning Network. However, the application may still be weak compared to the total capacity of about 854 BTC (i.e., 6.2 million USD) on December 31. So far, only a vital exchange (Bitfinex) has used Lightning Network to send and withdraw Bitcoin.
EOS also has a lot of attention from market participants. First, EOSREX, a loan and lending platform in the EOS ecosystem, was launched in April.
Chart 24 – EOS’s Rex Daily Rex on the amount of money locked in EOS
Source: Binance Research, Dapp Review.
Since its inception, this application has shown important growth in resources provided to the platform. However, there is a critical imbalance in the supply/demand dynamics because of more lending resources.
However, in the fourth quarter, the total amount of EOS provided dropped from the highest level of over 105 million EOS to 75.6 million (as of December 31).
While Kyber Network is viral in Ethereum, the development team has also deployed Kyberswap based on Ethereum on other blockchains:
- EOS: YOLOSWAP
- Tomochain: Tomoswap
- ETH/EOS Cross-Chain: Waterloo (not yet executed)
Similarly, the success of both MakerDAO and Compound on Ethereum also led to the creation of similar platforms on other competing blockchains.
In the EOS ecosystem, the Equilibrium Protocol works similarly to MakerDAO. DAI’s counterparty is called EOSDT, and the qualifying collateral is EOS. However, Equilibrium’s collateral requirement is 130%, slightly below Maker’s 150%.
Figure 25 – EOSDT’s Total Collateral Growth (measured in EOS)
Source: DApp Review
Since they created it the date, it has shown important growth. As of December 31, 2019, we estimate the total locked collateral to be worth over 4 million EOS. However, the market cap is still relatively small, around 1.8 million EDT.
Similarly, As is an EOS implementation of the Compound protocol but is not yet widely used as a Compound (illustrated by the chart below).
Figure 26 – Daily unique users of Acueos and Compound as of October 2019 (log)
Source: DApp Review
Cosmos also owns a similar project (as maker), focusing on stablecoin supported by cryptocurrencies: Kava. On October 23, Kava successfully raised funds on Binance Launchpad.
Meanwhile, Neo also has a makerdao project called Alchemint, where SDUSDs are cast by a mortgage. From December 31, 2019, less than 60.00 SDUSD was released in the Alchemint platform.
PEG Network also launched its MakerDao mortgage contract, allowing users to print USDB based on Bancor Token deposits (BNT, available on both Ethereum and EOS).
In addition, we should note that many traditional decentralized exchanges exist on multiple blockchains such as Binance Chain (Binance Dex), NEO (for example, Switcheo), EOS (for instance, Newdex) and Tron (for example, Polonidex).
Chart 27 – Daily volume on Binance Dex (in a million dollars since its inception)
Source: DApp Review
For example, Binance Dex launched on March 23, 2019. Since June 2019, its daily average volume has almost decreased and remained at more than $1 million in most years. Binance Dex displayed a total volume of 755 million USD in the first nine months.
Switcheo provides a decentralized exchange on Neo and Ethereum, with full interaction ability on two blockchains.
Chart 28 – Switcheo daily mass on NEO / Ethereum (in USD)
Source: DApp Review, CoinGecko
In 2019, Switcheo showed a total annual volume of $49.5 million.
Other exchanges with cross-chain interoperability, including Bancor Network (EOS/Ethereum) and other projects under development, such as Thorchain, have implemented their coin IDO on Binance DEX
Besides other blockchain-enabled DeFi applications, Loom Network has been working to bring DeFi to alternative, major-market blockchains, such as Tron and Binance Chain.
4. DEFI’s paradox and the viewpoint of 2020
4.1 DEFI: A small but dynamic ecosystem
Although DEFI represents a small segment of the cryptocurrency industry, it is one of the most vibrant areas.
Chart 29 – The development of the only daily user in DEFI is based on Ethereum
Source: DApp Review
On average, the DEFIs based on Ethereum display the only daily user number of 3456 users in 2019.
Chart 30 – The number of DEFI projects operating (the project has over 50 user daily)
Source: DApp Review
The number of active projects, defined as projects with over 50 unique daily users, nearly doubled in 2019. However, the number is still small, in absolute terms, as less than 20 projects are in use.
In the crypto space itself, DeFi is still tiny. For example, the total collateral locked in staking is much more substantial, worth ~$6 billion, which is five times larger than the real collateral in DeFi.
Ultimately, DeFi’s size remains insignificant compared to the (traditional) fixed-income market. Recent estimates of the total debt market size are ~250 trillion USD4 in 2019. In the United States alone, we estimate consumer loans to reach ~1.6 trillion USD5 in 2019.
4.2 The development of staking
Unlike lending, I conducted Staking at the protocol level, where the user locks the money to security and then earns a staking reward. They discuss this deeply in our report on the rise of Staking.
Figure 31 – Expected Yield (%) for staking-supported assets on Binance.com
Source: Binance.com.
Since I conducted staking on the first layer of the blockchain, any reasonable coin holder must trust the staking protocol. Therefore, we expect increasing betting awareness and more long-term investors to participate in on-chain governance and other activities. As of December 31, according to StakingRewards.com, we estimated the cumulative market capitalization locked in staking protocols at $6 billion. This number will increase significantly in 2020 as more staking-based protocols launch on their main networks, and Ethereum moves from PoW to PoS.
Lending can disqualify staking because of the promise of higher lending rates. However, as of December 31, funds locked in DeFi are estimated to be worth ~670 million USD for Ethereum and ~200 million USD for EOS (mainly from EOSREX).
We also expect consolidation for primary staking services offered by both crypto exchanges like Binance (i.e., Binance Staking), Coinbase (e.g., Tezos), and KuCoin staking services) and dedicated vendors. Will staking lead to centralization through economies of scale?
However, as mentioned in our recent institutional report, staking is not yet one of the key growth drivers for the crypto industry, according to essential investors and institutions. Will the expected launch of Ethereum’s beacon chain shake up the industry?
4.3 Defi is based on Ethereum
In 2020, we expect several trends regarding Ethereum-based DeFi:
- Kend of Maker dominance: we expect Compound to take over Maker in 2020, both by volume and by the lockout. Synthetix will also likely challenge Maker as it allows for more flexibility in terms of what we can anchor assets Synths to (e.g., Silver Ounce/sXAG or inverse BNB/in). However, the collateral used in Synthetix is still tied to an illiquid (SNX) asset, which raises concerns. Meanwhile, all assets that qualify as collateral in Maker are very liquid (ETH and BAT).
- Maker DSR integration: while we think MakerDAO dominance will probably be challenged, it will remain a focus in the DeFi industry. While adding new collateral (e.g., BAT) captures the bulk of the interest, the Dai Savings Rate (DSR) will likely become one of the most important rates in the DeFi space. For example, Fulcrum has integrated DSR into its platform. Exchanges that list DAI for trading will also continue integrating Dai Savings Rate into discussions.
- The emergence of less or even less-collateralized mortgage solutions: as discussed in our first DeFi report, over-collateralization doesn’t help those who don’t already have a bank account. New solutions are being considered, such as social fund recovery, credit scoring, zero-knowledge proof, and credit market DAOs. We also expect the further use of the time value of a currency relationship to enable users to borrow with the promise of expected future cash flows. Experiments with Sablier could pave the way for dedicated protocols. In early 2020, Aave (LEND) will move its lending markets to the mainnet, from the current testnet implementation, including decentralized instant loans.
- Launch of DeFi Derivatives on Ethereum Mainnet: Convexity Protocol and other platforms (e.g., UMA Protocol) have the potential to bring new trading opportunities to the DeFi space. However, there is still skepticism about managing risk and reward from the underwriter’s point of view. DAI6 price hedging solutions, such as SwanDai, are also likely to be deployed on the mainnet.
- Tether USD (USDT): After moving a large amount of circulating supply to Ethereum, soon into some DeFi protocols in 2020. For example, it will include Tether USD in the Compound protocol.
- The evolution of “one-stop” (all-in-one) solutions: platforms like Zerion and InstaDApp aim to provide a superior user experience and make it easier to use DeFi. Specifically, these single user interfaces allow interaction with many platforms. Protocol aggregators like DeFiZap and Dex.ag will also gain traction as they often allow users to minimize gas fees and hedge against platform-specific risks.
4.4 Alt-Defi expansion
As far as the non-Ethereum DeFi space goes, we expect some developments from the perspective of other blockchains like:
- Bitcoin (BTC) could play a more critical role in DeFi on Ethereum and as a standalone solution.
- BTC as collateral: Bitcoin, the largest cryptocurrency property according to the market capitalization, is likely to be added as collateral in MakerDao (for example, TBTC, WBTC) and continue to attract attachments Get in DEFI applications based on Ethereum has been established. Soda also allows the ERC-20 token to borrow with BTC as collateral.
- SBTC Side-chain: DeFi on Bitcoin sidechains is also likely to attract more attention and continue to be explored. Initiatives like Money On Chain also serve this purpose.
- Binance Chain: Thanks to BEP-3, DEFI on Binance Chain can attract attention from cryptocurrency participants. Initial initiatives from Loom Network illustrate growing attractiveness from third -party collaborators.
- EOS: Greater force with Ethereum (for example, Bancor, Kyber) will occur. As discussed in the previous section, its DEFI ecosystem is being developed.
- NEO: NEO with SDUSD, cast in the Alchemint ecosystem and Switcheo trading floor that operates on ETH and NEO Blockchain. We hope we will implement additional solution solutions we will implement other solution solutions in 2020.
- Cosmos: I expect Kava to launch in 2020, which can mark the birth of Stablecoin supported by Cosmos’s first decentralized cryptocurrency. Kava plans to include collateral such as XRP and BNB.
- Tezos: someone specially added DEFI someone specially added DEFI in September 2019 to the new RFP for the ecosystem funding of the Tezos platform.
- Algorand: Algorand released a statement in November 2019, which specifically mentioned interest in the “DeFi movement”.
- Tomochain: With the launch of Tomox and Tomobridge expansion (Cross-chain swap), I can see that new projects are being developed.
- Tron: Whilewe can move initiatives from Loom we can move initiatives from Loom from MakerDao to Tron, decentralized exchanges (for example: Polonidex, Zethyr) is one of the most extensive DEFI applications on the tron.
- Waves: Its recent annual event focused almost entirely on the DEFI applications. The publication of Gravity Hub, a cross-chain interactive service, can put some DEFI into the Waves ecosystem.
- Ontology: Supported by adding PAX to its network, born to develop cases of using DEFI on their chain, as published in August 2019.
Although the Alt-Defi space may develop in 2020, it is still necessary to see if importantmany users are ready to use these services.
4.5 Summary
Discussing all platforms and protocols in the same report is impossible because the industry is too broad. For example, content management platforms (such as Set Protocol and Melon) and relayers (such as Loopring) have not been discussed.
We expect DeFi to attract more interest from industry participants. However, up to this point, the use cases are still mostly confined to the crypto community.
This report added decentralized exchange applications as part of DeFi, but DEXs often extend beyond the world of DeFi only.
Once several technical and regulatory challenges are resolved, we expect tremendous growth in the decentralized finance industry, capable of attracting individuals and capital beyond the industry. Of the current cryptocurrency industry.
DeFi’s rapid growth has led to a dynamic and innovative global community, building first blocks that challenge traditional financial platforms. Is the world ready for the borderless state of DeFi?
