Around 2022: Will the DeFi summer return?

There is no doubt that NFTs are already gaining traction in the crypto space in 2021.

While some market analysts speculated about the popularity and use of NFTs some time ago, the rapid adoption of NFTs by traditional and crypto-native players still surprises us. The hype surrounding NFT storage devices like CryptoPunks, Bored Apes, and EtherRock has even affected DeFi expansion.

However, I expect DeFi to be back in the spotlight in 2022 and have a second "DeFi Summer" like 2020. There are two main reasons.

DeFi revenue is most likely to be seen, especially in congested or declining markets.

Event control version of DeFi which we call RDeFi (e.g. DeFi control)

attractive income

Since the "Summer of DeFi" in 2020, many new developments have taken place and existing projects have brought more products to market. The year 2021, especially the first half of this year, sees a wide range of developments, and DeFi is showing the best results, such as storage giving returns of 3-5% to stability coins giving returns of 30 at 40%. A tighter product depends on the risk it represents for investors.

During the recent uptrend, many new players entering the crypto space will start exploring DeFi. For some, the path to crypto would be the “normal” way of exploring DeFi from Bitcoin to Ethereum, then NFTs to Ethereum then DeFi.

Even if people enter the DeFi realm, the result is the same. DeFi is becoming increasingly popular, which could lead to DeFi 2.0 this summer.

Don't overload

Although the Ethereum 2.0 update (i.e. integration) is scheduled for the first half of 2022, we believe that Ethereum will continue to compete with high network costs for most of this year. .

This will not limit the adoption of DeFi, but will force investors to use more L2 (layer 2) solutions such as Arbitrum, Polygon, Optimism or other alternatives.L1(Phase 1) Blockchain networks such as Polkadot, Solana, Avalanche and Terra.

I am very satisfied with Acala, Polkadot's DeFi platform. The platform recently became Polkadot's first project to secure the Parchain slot. Additionally, Solana has benefited significantly from Ethereum's NFT trading sharding due to its low cost, and Solana's high TPS (one-to-one marketing) capabilities and authorization capabilities for some DeFi applications that are not capable of Ethereum.

The advent of "RDeFi"

I think we will see the emergence of RDeFi or "regulated DeFi" in 2022.

"Regulated DeFi" might sound different, but I think RDeFi is the next variant of DeFi. In addition to the DeFi we all know and love, I expect to have the equivalent of DeFi (e.g. RDeFi) that makes the rebellious twins (e.g. DeFi) but wear a set that tracks finances are still there. Needs.This RDeFi is only accessible through the same Know Your Customer Service (KYC) process used by traditional transport vehicles and must meet the same financial protection standards.

In fact, we are already seeing it in 2021.A first example of an RDeFi projectFor example, lenders Aave and Compound both offer models based on their platforms.abe arkandthe bank.

These models will continue and we hope that other types of DeFi projects such as decentralized exchanges (DEX) will also provide custom versions of the platform. I wouldn't be surprised if a Uniswap Pro version comes out in 2022.

I hope we will see morethroughFollow the DeFi project from scratch, such as the approval of the German Federal Bureau of Financial Services (BaFin) earlier this year.crowds doing business, he is the DEX manager.

We also expect large centralized exchanges such as Coinbase or Kraken to give traders access to DeFi applications through gateway management. These intermediary exchanges free users from the burden of self-regulation and self-regulation, allowing users to access the DeFi platform without the need to take out the wallet on the website or interact directly with dApps. These products will lead to more adoption and profitability for the DeFi site.

Although some crypto commentators argue that applying DeFi with KYC should go against the spirit of financial sharing, I like to define DeFi as a "master-employee" business model rather than financial services provided by the 'industry. The conditions of access to this service do not modify the economic model.RDeFi devices exploit new users of these platforms., and still manage schools that cannot touch the DeFi site that can interfere with RDeFi platforms.

The management can also improve user protection and hold the platform accountable, which can be favored by users without restriction. I believe this improvement will help the field mature.RDeFi will play an important role in enabling additional capabilities of the DeFi platform and is in fact the only way to manage which organizations can access the site.

finally write

While we expect NFTs to continue to gain traction, especially given their connectivity for metaverse and blockchain-based games, we believe the DeFi site will also grow in popularity.

DeFi has grown over the years and DeFi is still a very new place, but over the years the field has grown steadily. The benefits will continue to attract investors and RDeFi will take DeFi to the next level, increasing adoption and performance.