The past year has been brutal for DeFi.
The price of DeFi tokens against ETH has been falling since at least October 2020.
In the past year alone, the DeFi Pulse index, which tracks major DeFi tokens, is down 69% against ETH.
- Inflation Design for DeFi Token Economics
- Lack of protocol revenue redistribution to token holders
- Attractive ETH Staking APY
For example, the only use case for Uniswap’s UNI is voting, and 0% of the fees generated are distributed to UNI holders.
With that in mind, this article analyzes the roadmaps of 25 major DeFi protocols to see what comes next.
Many things are coming: protocol-owned stablecoins, new token economics, decentralization initiatives, Maker’s The End Game initiative, and more.
You can view the full list of projects, roadmap details, timelines and sources: https://bit.ly/3J49Mwg
7 trends for the future of DeFi
So, what will DeFi usher in?
The growth of protocol-owned stablecoins
Following the recent launch of stablecoins by NEAR, Tron, and Waves blockchain, DeFi protocols Aave and Curve are also planning to launch their own stablecoins.
Even SHIB is creating its own stablecoin SHI.
While there is not much official information about crvUSD, Aave revealed the mechanics of its GHO stablecoin.
- Add new revenue streams
- Bringing additional use cases to the token
- Increase its demand and improve the profitability of liquidity providers
Increased adoption of veTokenomics
- Yearn Finance expects to launch veYFI in mid-August with a 4-year lock-up period
- Synthetix will use veSNX for inflation weighting
- Pancakeswap will also “soon” launch vCAKE for reward-weighted voting
I wouldn’t be surprised if COMP also transitions to ve tokenomics in the future as they will stop liquidity mining altogether.
Focus on gradual decentralization
As projects establish PMF, financial sustainability, community and regulatory compliance, they seek to reduce their single point of failure – centralization.
DYDX, GRT, REN, LDO and MKR are moving towards full decentralization.
Introducing a new iterative protocol
Crypto and DeFi are developing rapidly.
In order to keep up with the rapid development of the market, many protocols will comprehensively upgrade the way the protocol works.
- Synthetix V3
- Compound III
- Nexus V2
- dYdX V4
- Yearn V3
- GMX X4
The future is multi-chain
This is so evident that even Compound has a multi-chain strategy for its Compound III.
- SUSHI launches SushiXSwap DEX
- REN is partnering with Catalog, the Metaverse decentralized exchange protocol
- MakerDAO’s End Game has Maker Teleport (L2 bridge)
Uniswap V3’s growing influence
Uniswap V3 introduced centralized liquidity, and Kyber Network recently launched KyberSwap Elastic with the same feature, offering 5 fee tiers for LPs.
Osmosis is also building a centralized liquidity mechanism.
Expanding Token Use Cases
- Chainlink Announces Launch of LINK Staking, Welcome to LINK Token Model 2.0
- Pancakeswap V2 Token Economics Limits CAKE Tokens to 750 Million, Improves Yield, IFO Yield and Weighted Voting
- Maker will launch liquidity mining for MKR and even DAI holders.
Even among the top DeFi projects, the transparency of team building makes a big difference.
YFI, SNX and MKR have very clear roadmaps and deployment details and have good communication, while UNI is the most closed.
Are these protocol upgrades enough to revive DeFi?
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/analyzing-the-roadmap-of-25-major-defi-protocols-foresees-seven-major-trends-in-the-future-of-defi/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.