When we talk about DeFi 2.0, we are actually talking about these DeFi protocols.
When DeFi has not yet understood, a new vocabulary has recently become popular-“DeFi 2.0”, which can also be understood as “the second generation of DeFi protocol”.
Before we figure out “DeFi 2.0”, let’s first determine what DeFi has broken out in the past year or so, which undoubtedly can be traced back to the liquidity mining started by Compound.
Users who provide liquidity on this lending platform can not only earn interest, but also obtain additional governance tokens COMP.
Therefore, the massive amount of crypto assets that have been silent in the wallet for many years was quickly awakened, and countless emerging DeFi protocols poured into it, which also opened the crypto bull market that has continued to this day.
From the perspective of capital efficiency, it is very efficient, especially the emergence of machine gun pools has accelerated liquidity.
However, there is a big uncertainty for the project, that is, once APY decreases, TVL will immediately dry up.
In other words, liquidity mining can bring cash flow, but it cannot bring healthy cash flow.
DeFi 2.0 tries to improve the above situation and tries to use DAO.
It is too early to define DeFi 2.0, but we can look at what the projects of DeFi 2.0 concept are.
Olympus is a decentralized reserve currency, and its working principle is summarized as a “bond as a service agreement”, which is mainly divided into three parts:
That is, OHM tokens automatically generate income through the treasury-backed currency with intrinsic value.
Bonds and LP fees are used as treasury revenue, which locks in liquidity and helps control OHM supply.
National debt growth
The inflow of treasury funds is used to increase the balance of the treasury, support outstanding OHM tokens and standardize APY mortgages.
Users mortgage assets such as DAI , and then get OHM at a discounted price.
Users get OHM, can participate in staking, and then continue to receive rewards (newly minted OHM will be evenly distributed to staking participants).
And the less OHM participating in staking, the higher the APY.
Therefore, buying bonds and participating in staking can basically enjoy permanent dividends.
The TVL of Olympus is now US$155 million, and the funds involved in staking account for 99.5%.
Tokemak’s goal is to become a decentralized market maker.
The market maker is to provide liquidity to the exchange, and Tokemak is to solve the DeFi liquidity problem.
Users pledge ALCX, FXS, TCR, OHM, SUSHI and other assets on Tokemak, and then obtain the corresponding tToken.
The highlight of Tokemak is to motivate tToken holders to actively participate in the matching of trading pairs to earn TOKE token incentives. So TOKE can be considered as tokenized liquidity.
Tokemak operates on a cycle basis. The “cycle” is initially set to one week, and when a new cycle starts, the asset is deployed. LPs can also request to withdraw their assets in the middle of the cycle, and possibly at the end of the cycle.
“This is a book of spells that allows users to produce magic internet currency.”
Magic Internet Currency (MIM) is a stable currency based on interest-bearing assets.
The difference from traditional over-collateralized stablecoins is that Abracadabra can mortgage assets that can still earn continuous income, such as yvYFI, yvUSDT, yv USDC , xSUSHI, etc.
In other words, Abracadabra’s innovation lies in taking full advantage of DeFi’s composability.
Although these three projects are all called DeFi 2.0, the individual methods are different, but they are obviously good attempts, and more solutions to subvert the current model should emerge in the future.
Let us continue to pay attention, do not know whether it will bring a new DeFi Summer.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/when-we-talk-about-defi-2-0-we-are-actually-talking-about-these-defi-protocols/
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