The DeFi market value polished by ETH in three years has exceeded the 10 billion mark, can it be replicated?

Editor's Note: This article comes fromChatting with Xiaozha (ID: xiaonazha88), reprinted by Odaily with authorization.

Editor's Note: This article comes from

Chatting with Xiaozha (ID: xiaonazha88)

Chatting with Xiaozha (ID: xiaonazha88)

, reprinted by Odaily with authorization.

DeFi has become a hot spot in the second half of 2020. There is no shortage of imitators if there are hot spots, especially since the DeFi protocol is open source. There are quite a few imitators. Basically every public chain will enter the DeFi market.

As soon as it comes up, the head DeFi on ETH is packaged and realized. One protocol integrates functions such as lending, trading, and asset synthesis. However, the reality is: the code is easy to copy, and the funds are hard to find.

Here are a few points of view:

1. Many new projects will reach their peak when they go online;

2. The new ETH project is launched to gather liquid assets;

3. After some tossing, attention will return to DeFi on ETH.

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1. Many new projects will reach their peak when they go online

Last night, the DeFi project DFS (DeFis Network) on EOS was launched. The Chinese name of DFS is "Dafengshou". The moral is good, but the reality is cruel.

After the whole heat was over, everyone began to calm down and calculate the benefits. Of course, the project party also changed the rules several times in the middle. It can be said that the operation is as fierce as a tiger, and the profit is 1.5 at first glance. The following is the income of a DFS miner.

What I want to say here is that the core of DeFi is assets. It is really not that easy to optimize the code and move it to another chain. Of course, this does not deny that those who participated in the early stage can make money. After all, the DFS mined by those who grab the top spot are sold at a price of 1,000 EOS, which is also very fragrant.

If you use ICO and DAPP to play DeFi's liquidity mining, it's really not fun. DeFi plays with assets. Without assets, there will be no data, and even bubbles are not easy to blow.

On the other hand, the income from liquidity mining on ETH, such as the latest YFI, has a lot of benefits for those who participate, such as this group friend. Although I don't know how much he invested, he earned $9,900, which is very profitable.

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2. New projects launched on ETH, bringing together liquid assets

On July 18, the on-chain income aggregator yearn (formerly known as iearn) launched the governance token YFI, which is distributed entirely through liquidity mining without pre-mining or pre-sale.

This new type of governance mechanism of YFI has injected new vitality into the already popular DeFi field. The amount of locked positions in DeFi increased suddenly. It is said that at that time, a large number of large households mortgaged their assets to mine, and leveraged hundreds of millions of funds.

This is the power of high-quality DeFi on ETH. The amount of funds that can be leveraged and attracted is huge. After all, there are more than 8 billion US dollars of stablecoin assets on ETH, which is an advantage that other public chains cannot match. You can play DeFi only if you have funds.

Here again, the gold-absorbing black holes formed by the various DeFi protocols on ETH devour the funds in the currency circle.

In fact, the funds brought by YFI have flowed into various protocols, especially into Aave. In the past two days, the amount of locked positions in the Aave protocol has skyrocketed, ranking third at one time.

The data on July 20 shows that the locked assets in Aave: the sum of the locked assets of Lend and Link accounted for 46.7%, and the locked assets of stablecoins (USDT, USDC, etc.) accounted for more than 53.3% %.

From this data, the amount of stablecoin assets in Aave has increased significantly, because on July 7, the data of some locked assets in Aave, among which the sum of locked positions of Lend and Link exceeded 70%, as shown in the figure below.

For the Aave protocol, the high ratio of Lend and Link locked positions is very risky. YFI has brought a large number of stable currency assets to Aave, greatly optimizing the asset composition and improving Aave's risk resistance.

It can be said that liquidity mining on ETH has become a moat for DeFi.

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3. After some tossing, everyone’s attention will return to DeFi on ETH