Outlier Ventures Founder Explains MetaFi: DeFi In Metaverse

Metaverse DeFi rau

introduction

Since 2018, the concept of Decentralized Finance (“DeFi”) has evolved into the cryptocurrency community. In accordance with the principles of financial strength, licensing and the wide range of DeFi protocols and applications, our commitment to innovation and financial integration is our responsibility to create a financial environment that is more open, innovative and more digital than anything else. other system in the world. hope for today. is the Good Guardian and weakly mined, the latter is called CeFi or TradFi.

Although DeFi has received a lot of attention in the crypto space, its adoption is still low, it is estimated that less than 5% of all crypto assets are used for trading purposes. . In 2021, DeFi achieved monthly sales of $ 4.6 billion, less than 5% of JP Morgan's sales last year. In addition, DeFi has also limited lending to its origins of Stability Coins, Ether, or Packaged Bitcoin. Although it is currently the subject of significant work to build a bridge between centralized finance (CeFi) and DeFi, environmental governance, incapacity of capital and advice on new forms of accountability to real examples and economic. making integration distant.

In this article, we say that much of the development of DeFi is not done through CeFi, but through what we call “MetaFi” to unlock the value of Metaverse. A financial management tool for the metaverse. But what is the metaverse? What price is it? How will DeFi, combined with continued innovation in tokens and crypto assets, enable the growth of MetaFi?

If you are new to Metaverse and our tips before reading this article, we recommend that you read the Open Metaverse OS post before this year (January 2021). You can download and read old texts and new tutorials here.

In summary, the metaverse can be understood as a layer of physical and virtual worlds, including a new mix of hardware and software, but most importantly, the economy. The key is to think about accounting.

Jamie Burke

CEO and founder

Encrypt Yuan (Metabus encryption)

The most important thing, according to the interview, is that the metaverse is business. A meta-business that takes advantage of a digital business, virtual world, or game if you want to and should be seen as an example or segment of the metaverse. In fact, when the total GDP of the industry metaeconomy exceeds the GDP of the country-state, it will enjoy the maximum of the fiduciary industry long enough. We believe that the Open Metavese, at least the open and unauthorized version of this meta-industry, is made possible by what we collectively call cryptocurrency. In no other metaeconomy today do we say, “The metaverse is a cryptocurrency, and the cryptocurrency is the metaverse.

In our concept of metaverse, we can do this from two main points.

Interface layer: end users can access metaverse interference processes from a desktop browser, mobile app, or various hardware and software outputs such as reality (XR), virtual reality (VR ) and augmented reality (AR). (VR) and augmented reality (AR).

Financial Calculation Layer: A process that leads to the completion of a metaverse calculation process, which uses a decentralized, transparent and independent basis that defines the business concept for the end user to trade in products, services and of finance, and manufacturers can rely on this. A good example is Ethereum, which developers use as a process to create smart contracts for apps, and a list of end users in the metaverse.

In the context of the first context above, the process interface can be used in a variety of initial formats and files, and it is important to keep it open when technological output and input changes. So when we refer to the dawn of Metavrese, we usually mean the current experience such as games and the virtual world, whether it is 2D browser-based or more VR or AR.

The accounting process represents the underlying technology that generates the energy of the metaverse. As described in the article "Open Metaverse Operating System", we believe that the fundamental (or significant) structure of the financial system will be based on the technology (or blockchain technology) that accompanies it can be divided into Web3. Additionally, we believe that all digital domains of the Metaverse should be web3-based to provide a seamless, transparent and transparent tool exchange across all regions (or verticals) of the Metaverse. These technologies support the development of a variety of applications and applications based on Web3.

In this way, Metaverse provides a comprehensive and transparent crypto-based trading platform on a distribution basis. This forms the basis for new forms of digital marketing, the seeds of which we've seen in cutting-edge applications such as Non-Fungible Tokens (NFTs) and Play-to-Earn from Axie Infinity. Due to its classification and its lack of authorization, the transition process is inconsistent, which makes it difficult to catch up with the heritage process. So, especially in the context of DeFi, Metaverse has the potential to achieve external success or at least before the decision of national authorities.

Additionally, as we have seen over the past 12 months of 2021, DeFi faces criticism and scrutiny from many admins in various fields. While one level of management can have a positive impact on a business, poor management can slow innovation and attract employees. In the case of DeFi, it is easy to draw a few examples of traditional financial assets and assets. Metaverse also believes that digital marketing for commodities, where products may or may not be involved in traditional markets, is often represented by illegal trade. Just like everything in the global economy is out of control and cannot be stopped. Since industry growth can be achieved in VR, AR and XR environments, the management investment layer is more difficult to monitor, let alone control it live for a long time.

We strongly believe that the financial support and enhancement of the DeFi component of Metaverse's development will lead to unprecedented levels of global financial integration. We also believe that the Metaverse business enterprise will benefit the next generation, not the heritage world, thus contributing to the rich transformation of generations. Create a collaborative environment for digital audiences, digital artists, digital professionals, gamers and musicians. It will offer integration to individuals with digital advantages that are not recognized by traditional financial systems.

Store status quo quotes in DigitalEconomy

Today, thousands of dollars are now deposited on online merchants such as social networks (Facebook, Instagram or TikTok) or games (Fortnite and Roblox). What we call Web2 is a purposeful, functional "gap" that closes in on this value, and users try for as long as possible to eliminate as much "life value" as possible for the benefit of our members. The company Web2 operates on the principle of the best sellers, especially consumers. For advertising or free-to-play games, these fees typically benefit advertising, and the revenue is usually not shared directly with users. Even Roblox, which believes developers can benefit from User Generated Content (UGC), estimates they only get a 25% discount. This also applies to YouTube music streaming formats and services.

The total value of the global digital economy today is approximately $ 11.5 trillion, equivalent to 15.5% of global GDP. It has grown 2.5 times faster than global GDP over the past 15 years (since 2000), has almost doubled in size, and more and more people rely on the Internet for their working lives.

Expansion The creator of the digital business, which is part of the digital business, is now only a small part of the digital business, but an important area has grown. This includes advertising, games (skin care), digital art, streaming, music, movies, etc. At the provider, there are currently 50 million content developers in the region, including enthusiasts (46.7 million) and around 2 million professionals. Professionals in the digital marketing industry can easily earn $ 100,000 per month. However, most of them have lower incomes, their incomes are not good and it may take several months before they get paid while working in the system. We believe that many of today's entrepreneurs will not be seen as part of the exchange. Since the price cannot be traded independently of the platforms, it is often anchored to the value of the platform's assets.

The limits of the Web2 digital platform can be subdivided as follows:

Limited includes:To serve as an example of digital business creation, most developers are always left out of the budget because the value they create is seen as beyond their control and the income from it is not cyclical. In short, the financial system cannot always measure the risk associated with lending to people with this income and wealth versus working for a mid-sized business and paying in fiat.

Dynamic Terms of Service:Participants in the digital design industry cannot be trusted with the reliability of intermediary services, which can lead to financial and platform decommissioning on both sides of the developer. Platforms like Facebook and Twitter continue to disrupt developers and APIs (while Only Fan is banning the creation of adult content, for example). In practice, the rules for participating in these platforms are fuzzy, inconsistent, unverifiable and constantly changing (depending on the drawbacks of smart contracts).

Blocked by design:As has been discussed before, the platform is difficult to send or complete the spreading or test and digital industry directly on the platform, and the platform is difficult or possible. Because this has set up special rules, no alternative options even if the user can close.

Web 3, NFT et meta

On the other hand, in the Web3 world of cryptocurrencies, DeFi and NFTs, the whole paradigm revolves around users and their sovereignty (confidentiality, information and wealth). . In Web3, even the data itself can be a form of income and income. This means that while the platforms are always available to help design, discover, or modify processes, users have full control over product development, platform trading, and resale. , borrowing and borrowing illegally. Simply put, trade is just a "product".

Unsurprisingly, we have seen from Web3 the early success that when the gap is removed and changed, people will invest more time and money in their favorite platform like the Axie Infinity game. This is what we described in our previous article. In the long run, Metaverse and its platforms (such as Web2 in general) will adopt Web3 technologies and principles. Not because it's philosophically true, but because it's a good deal.

(Contains Axie Infinity users via @Jihoz_Axie)

And TikTok's recent NFT announcement proves that prediction is correct. But the good news is that it can happen without a closed platform, explicit permission, or use of Web3. Instead, NFT derivatives are, in principle, the free market of the Web3 industry unauthorized and combined with closed platforms, undermining trust by new developments in exchange industries like the Boson Protocol.

metaphy means

For us, MetaFi is a process that includes all processes, products and / or services that result in the difficult financial impact of homogeneous and homogeneous tokens (and derivatives). For example, today, with MetaFi, individuals can use part of their NFT as a liability for their DeFi lending platform.

To understand MetaFi, we must first mention two key concepts of DeFi. Two key DeFi principles make this possible. 1) Unstoppable, 2) Configurable. For the manufacturers, it is a form of "lego money", a very good financial exchange. Manufacturers around the world can partner and compete to deliver maximum value while eliminating inefficiencies. It is important to note that the controller cannot limit DeFi's interference with the fiat-based systems it monitors, not what happens with DeFi itself.

MetaFi brings this DeFi process to the breadth of the metaverse. Integrate and blend non-fungible and homogenized tokens with new forms of community governance such as Decentralized Autonomous Organizations (DAO).

With a mix of different crypto primitives, a full-fledged parallel industry could bring hundreds, if not billions, or even billions of users into the crypto ecosystem next year.

We believe this process will be accelerated by the 4 Core Values ​​of MetaFi.

Design financial tools:In the past, DeFi Group was owned by a handful of people in the cryptocurrency development community due to the high performance of digital technology. However, the NFT platform makes it easier for developers and communities to build businesses to exchange ideas with users, from ongoing costs to performance. advertise their own social tokens. Fans and communities can also directly share the financial success of their favorite cultural products and campaigns.

Redefine everything:A lot of people frighteningly talk about the concept of cryptocurrency without realizing that it is a unique problem and not a bug. With MetaFi technology, the cost and flow of everything can be built into digital assets, creating an open and free market, knowing long-term value, finding timely value, and releasing unknown rates on the internet. the price.

CAD Services Development Team:A whole DAO group makes it possible to manage a combination of the advantages of digital telephony and financial transmission without the help of intermediaries such as businesses and home banking. The biggest advantage of DAO members is that they can join and opt out based on their own decision and clarity.

Reciprocity of risks:History has shown that financial companies are often unable to measure the risk in new businesses such as the primary financial institution or the insurance company. The result is a combination of risks to the community, from farming communities to exporting. From farming communities to the shipping industry, venture capital has always been driven by partnerships. DeFi already provides users with community assurance features, especially when combined with DAO groups.

Support:Gen Z wants to know more about understanding their finances better than their leaders. As a result, many neobanks offer new and exciting ways to plan your personal finances, and the courses make banking education easy. This allows young people to access financial products more easily than their parents or grandparents. Additionally, we see a range of financial instruments and scripts to focus on such as Dogecoin cryptocurrency or various “memes stocks” provided by Robinhood as people become more culturally aware online. You invest and invest more.

In-depth analysis of NFTs as promised

To truly understand why digital assets can be borrowed as real financial assets, we need to understand what it means to enable NFTs to become commercial products for DeFi. As we discussed at the end of 2020, NFTs are generally less liquid than friendly tokens, but can play an important role in the DeFi process. Long before the NFT graphics movement (the emergence of "blue chip" NFTs like Crypto Punks and Bored Apes) appeared in early 2021 and the success of the P2E mobile gaming model (led by Axie Infinity), the combination of DeFi and NFT is doing very well and this model is already showing up on MetaFi every day.

(OpenSea market daily products and revenues in 2020, source data: TokenTerminal)

(Axie Infinity fully diluted market value and 2020 earnings. Data source: TokenTerminal)

(Data of all DAI loan packages in the NFT industry as of 12/13/2021)

(Data for all wETH loans on the NFT market as of December 13, 2021)

Additionally, integrating community governance tokens with manufacturer-designed FT (Fungible Tokens) and NFT (Non-Fungible Tokens) will allow less demanding middle class people to benefit from community outcomes, including developers and the future. and expand further. the price. Currently, the total value of Managed Community Token is approximately $ 1.1 billion and continues to grow.

(Top 10 community-managed tokens with a total value of around $ 1.1 billion. CoinGecko data as of December 13)

(FWB (Friends with Benefits) token price table, Coinmarketcap data, as of December 13)

metaphy frame

To better understand the metaverse, I think it would be best to see the details first. To achieve this, we use the Open Metaverse System framework above. This framework is generally based on the multiple request layers of the web3 network. (as shown below)

base layer

This includes key processes such as L0, L1, and L2 such as Polkadot, Ethereum, and Polygon. These key principles demonstrate the application of logic and security, allow applications to be built on them, and provide integrated communication processes (including links and interfaces) (interconnected devices, each capable of controlling and controlling) , making horizontal values ​​currency. . Metaverse activation tags and their associated products should be included in any applications you come across in Metaverse. If applications are not integrated into the ecological process, the economic and social benefits continue to fade and disappear as applications are "left out" and lack financial resources. A similar situation can be seen in the natural world, where services that are not integrated into the general process are slowly disappearing due to the decline of users.

Challenge

This includes a small financial app that can be used in the key processes mentioned above. These apps can be thought of as “currency legos” and are important apps, enabling hard work and financial sustainability through smart contracts.

read

This is a group of nodes or parallels that make up the entire metaverse. Applications such as the virtual world must be connected to the base layer as a relationship and free exchange of value. DeFi (MetaFi) in the metaverse occurs between nodes. Here, special equipment (usually NFTs) interacts with general and homogenized assets (basic and financial). There are many different types of apps in the Metaverse, and each different app means great. However, in fact, MetaFi is the result of the interplay of homogeneous and non-fungible tools.

Completing the procedure simplifies “horizontal scaling” of the metaverse.

As described above, the parts of housing includes important decisions such as polkadot, and polygon. The process is usually useful. That is, L0, L1, L1, L2) of a part (L0, L1, L2) often gives some service service. EDF is used as an example to import the contracts successfully with a standard L1 framework to provide a L1 contract. In other words, it can be used to create logic logic in Tiiquian, so can you use it to create a group of other programs. Like Bitcoin goal, but in addition to this dispersion, the king is available to a realized speaking Tanfriqué (by a smart contract programmable call). Easier, we will pay for L1. These emails provide platform for smart contracts (and funds) and widely used for financial. This mixture means intermediate contracts between networks that affects the application of the email set up. Information such as L0, L1, and L2 continued layers, and everyone, can encrypt various industries in the currency. Ecosystem.

Multiple metaphy

As mentioned earlier, with the advancement of MetaFi, the number of different application ecosystems and their definitions are constantly changing. However, we have tried to define some of the key functions below: These categories are supported by the DeFi app, file bridge and many other sublayers, like in the Open Metaverse image above.

virtual reality:The world's virtual is based on relationships, business and playing institutions (may not follow the real world). In the virtual world, most nfts, volunteer, construction and construction without theme - soil. The most popular examples are sand and separated. Virtual soil is part of the NFT that is close to the world's equipment virtual and vote to improve recommendations. Since the early 2021, heat and acknowledge the world virtual is higher and higher than 12 people to disturb each day. However, last month, 65,000 independent independent space with somnium facilities, separation sand and cryptemoxic, and the development is four times in November. Sandboxes have a good head of the earth's active of monthly sponsor (4.1K) or full price (1150 million).

Games:We can define gambling as the most digital activity used for entertainment. Metaverse games are the difference between what they're usually paid for. In other words, users or players pay for their participation in the game. This creates an industrial model in which capital is linked to labor to create value throughout the game. Axie Infinity is probably the game's metaverse. most popular and one of the top users of sports games (nearly 2 million monthly users) and revenue ($ 2.5 billion per year). However, well-designed P2E 2.0 games have also appeared on the market, including racing games like Zed Run and Battle Racers, including card games like Splinterlands and open world RPGs like Embersword. Since the start of this year, the popularity of blockchain games has increased. Almost half of the wallet sites are in-game, and the 10 most popular blockchain games have a total of 4 million monthly users.

avatar:Avatar is specially designed to allow users to create digital identifiers, including interactive 3D avatars that can be used in multiple metaverse locations, typically designed as digital image processing (PFP). . The PFP, which can be described as the “entry ticket” of famous organizations, usually comes in the form of NFT, but to improve its performance, the club often has problems managing honor tokens with authority. regulation or other privileges and other functions. Well-known companies like CyberKongz and SupDucks distribute native characters to NFT bars (in some cases rare). Take the example of CyberKongz, in the case of CyberKongz, Genesis kong gives 10 banana tokens every 24 hours. These tokens can be sold on Sushiswap or used to modify, rename or purchase items in the "Banana Shop", and of course they can be used for breeding (requires 600 bananas to produce new beans).

Portable devices:Wearables are digital devices that can be used / released in exchange. They currently make the most decisions in the game, but will expand to other categories of the Metaverse in the future. Large-scale design has increased the use of NFTs to reach 2.7 billion players worldwide. Players can now have exclusive skins created by top fashion brands and shown to millions of people online. For example, Balenciaga has partnered with Fortnite to create four virtual jackets, and Burberry has partnered with Mythical Games to create fashion products based on NFTs.

Marlet:Stock exchange trading is a digital platform where products and applications are integrated, providing the space to trade multiple NFTs and users to compete with each other. Trading platforms such as OpenSea, Superrare, and Rarible allow consumers to market independently and set up NFTs directly. On the stock market, these NFTs can be used as financial assets. Fragmentation of NFTs increases liquidity by dividing high value NFTs into FTs. Fragmentation and aggregation are particularly popular and well developed as a selling solution for NFT in key industries such as the NFTX platform and index funds such as Beeple's B20 index. The growth of TVN has resulted in an increase in market share. As of January 2021, OpenSea's monthly revenue was only $ 1 million, but by November 2021, it had grown 2000-fold from $ 2 billion.

NFT Rendement:NFTs can generate income directly or indirectly. Generating income directly involves using DFTs as a commitment to borrow money and then repay the loan at a higher interest rate. NFTfi allows NFTs to be used as collateral in loans. You can combine NFT and DeFi LP tokens to generate your own income stream. Charged Particles aims to provide a platform for adding DeFi content to NFTs. Additionally, over the past few months, more and more NFT projects have started to advertise their own regular tokens, which tend to be further monetized into NFTs. This created a positive impact on market players such as Loot, where the gold rush began shortly after NFT. EtherCards release Dust tokens which are awarded to all existing cards based on their rarity. Dust can be used to participate in raffles to win NFT vouchers. This affects group avatars, and CyberKongz and SupDucks can also be considered useful NFTs.

Passage tokens:These tokens may or may not be fungible and give holders access to a wide range of benefits, whether in the form of community access rights or in future versions. A good example is the Ape Yacht Club, a collection of 10,000 Ape NFT. NFT allows registrars to enter into community disputes with buying and selling members of the Bored Ape Yacht Club.

In most cases, often, often, often, often, often, do not work out above. For example, p2E mode, such as infinity, is passed to the NFT of NFT. Similarly, we have found the standard custom encryption based on the conversation such as Gitco-selling narter raised for digital equipment. We look forward to the new metafi to recommend a lot of strangers of category in the future.

Limited today

There is still a lot of work to be done before MetaFi can begin to realize its true potential. In particular, MetaFi currently has certain limitations. Currently, MetaFi has many limitations that must be overcome to bring the importance of adoption. Accept the wave.

NFT Measure: To buy, sell or rent NFTs, the owner must know the value of the NFT. NFTfi addresses this problem by allowing users to register Liability NFTs on the NFTfi website, and lenders can offer loans for a fee based on the value of the NFTs. The expertise is made by the lender and not by a dissatisfied third party.

Legal and regulatory issues related to evasion: If you divide the NFT into 100 and divide it into different people, it is not always clear who can do what, when and how, especially if the NFT has rights such as the vote or income. These rules are governed.

Blockchain-wide structure: Now that Metaverse is developed from pure Ethereum, these blockchains are not yet 100% compatible with other Layer 1 or Layer 0 blockchains. In other words, a short separation of the results is an exception.

In order to enable the full value of DeFi for the exchange, NFTs must be easily connected or connected to the DeFi protocol. For example, you may need to exchange, rent, rent, and return NFTs. Today DeFi only works with homogeneous tokens, but hopefully there will be new ways to connect DeFi to NFTs.

Fragmentation of NFTs: This means separating non-fungible tokens into more homogeneous tokens. We can think of this score as part of NFT membership. For example, memes creators can use design tools to create scripts, differentiate them into homogeneous tokens, and trade them using DeFi DEX like Unsiwap. Activities well known in different NFTs include Fractional or DAOfi.

NFT via DeFi: It means installing DeFi protocol to accept NFT as a type of liability. For example, developers can create assets in the virtual world and use them as commercial products for rent and loan on platforms such as Centrifuge or Pragmafy.

NFT as derivatives: develop a system of digital assets whose value depends on the value of the production of assets, game assets, investment, etc., represented as NFT, and possibly decide with data oracles. State. For example, a digital artist can create a graphic, create an NFT derivative, and use it as a business product to create a real estate product (like silver, gold, or silver marketed in Synthetix).

us 2022

Short, small situations, the metabus, the Metabus rank is a similar form of copies of the difficult prints (and their derivative). / Or service. This includes the default at blocking of competitive places, such as set 0, set 1, and central 2, Dedi categories and price. Metafi gets two values of deformol. It cannot stop and gather. Its development is taken by several key traditional, financial games and dao services interactive.

Hope you made it clear that MetaFi in its original form is still in its infancy. Some features are surprising, but they only scratch the surface of the feature that can be left open in the medium to long term. However, based on what we are seeing in the market and our accelerators, we expect the following improvements in the short to medium term:

A combination of different MetaFi classes and the creation of new classes such as users creating virtual world games, creating personal businesses or unproven objects such as wearables or avatars

Integrate VR content to improve the user experience / user interface (UX / UI) of MetaFi's financial businesses. In order for MetaFi to be truly successful, it needs to have a better understanding and understanding of ordinary people.

Another new update to DeFi 2.0 is the switch to MetaFi, similar to the new development we are seeing with Alchemix, Olympus DAO. We need better solutions for breaking NFTs, in particular to meet legal and regulatory challenges and the NFTisation of DeFi.

It enhances technologies such as Layer 1 that reduce exchange costs, increase accessibility, enable efficiency and total ease of use for applications running on the blockchain protocol.