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10 May 2021

DeFi 2.0 poised to defy expectations this summer | CryptoSlate

DeFi 2.0 poised to defy expectations this summer | CryptoSlate


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However, even today, with DeFi at $68 billion TVL and an estimated 2 million users (unique addresses), this is a drop in the ocean compared to the all-encompassing centralized finance as we know it.

This alone represents a very high psychological hurdle to jump over because it infers the propensity to learn new information about a completely new kind of finance – DeFi.

After all, if centralized finance already causes such stress levels, what can be said about an experimental one that is prone to frequent hacks.

With that said, it is safe to point out that DeFi is not going anywhere.

Yet DeFi is already interfacing with existing financial infrastructure.

Such interfaces provide DeFi with lanes yet to be tapped.

In the DeFi space, instead of negative interest rates, one is welcomed with an APY (annual percentage yield) range that is unthinkable in traditional banking – between 5% to 15%.

The DeFi protocol that initially kickstarted DeFi’s explosion last summer by introducing AMMs – Uniswap – islaunching a v3 upgrade this week, on May 5th.

Consequently, this mainstreamed the practice of code auditing in the DeFi ecosystem.

Moreover, in the case a hack does occur, a number of DeFi insurance protocols have emerged: Nexus Mutual, Cover Protocol, Opium Insurance, to just name a few

This leaves us with a number of conditions superior to those from last summer: near-zero or negative interest rates, upscaled Ethereum and Uniswap, richer ecosystem thanks to NFTs, better coding and insurance practices

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