Is DeFi short-lived or does it really change profoundly? So how exactly does DeFi evolve? What is the relationship between DeFi and Ethereum? How did MakerDao emerge? Do you know the limitations of DeFi and what new explorations?
With your questions, we particularly invited the teacher of the very first lecture on DeFi, the founder of Stafi & Wetez, the author of "Understanding the Blockchain PoS Consensus", and a solid supporter of the PoS consensus.
01
Background: People chain and Dapp are nowhere coming soon, and DeFi is just about the brightest one
In 2019, following the 1CO, the exchange wave, the residual blockchain explorers are still innovating. The game between centralization and decentralization hasn't stopped, however the ideal decentralization spirit continues to be the target of (yi) and (yin) rule makers. We have witnessed the innovation of several blockchain projects, from public chains (Ethereum, Cardano) to Dapp (EOS, Tron), from Dapp to multi-chain (Lightning Network, Raiden Network), after which from multi-chain back to platform (Cosmos, Polkadot).
In "The Myth of The Infrastructure Phase", Dani and Nick summarized the method of mutual achievement of infrastructure development and application development in the PC and Internet era. They said that in the blockchain, platforms and applications will observe the same rhythm, APP=> Basic structure=> APP=> Basic structure...
Now, the proliferation of public chains has destroyed the imagination of investors, while Dapp has destroyed speculators' expectations for short-term landing. Practitioners all lament that being near money is just a double-edged sword, but in essence, this really is a different one. The performance of progress is very contradictory.
Considering 2019, the bear market remains, but new concepts are still emerging. Staking and DeFi will be the two most beautiful boys on the street. Staking meets people's short-term profit expectations, and DeFi meets people's long-term profit expectations.
Both are clearly divided in the cycle of time outbreak. The initial half 2019 could be the staking market, and the next half the year DeFi could be the protagonist. Both have a gestation period, which can be about 50 % a year.
Starting in the middle of the year, DeFi Protocol has turned into a sweet potato in the professional circle. As the data of DeFi projects in the very first half the year has grown well, people's attention has begun to shift from the staking market (the staking trillion market that the media frequently claims) To DeFi in the more expensive market.
One of the few DeFi projects, MakerDao carries a lot more than 80% of people's focus on DeFi projects. The surplus attention originates from people in the stock exchange, and the demand for stablecoin DAI covers the majority of the current DeFi scenario (that is, the preservation and lending of stablecoins).
Based on data from DAppTotal, the total amount of loans for DeFi projects increased from USD 24 million in January to USD 173 million in June, and the total amount of loans also increased from USD 9. six million in January to USD 256 million in June.
02
What is DeFi?
A simple definition of DeFi: the abbreviation of Decentralize Finance, literally translated as decentralized finance, following the community understands and diverges, it has a higher rate of meaning, called open finance, or distributed finance, distributed commerce, etc .
Based on the above definition, Bitcoin ought to be the earliest blockchain DeFi project, a lot more than a decade from today, but in the new DeFi concept, MakerDao could be the big brother in the current layout, accounting for a lot more than 80% of the interest. Maker is just a project in October 2017. With this project as a starting place, the new DeFi project has been developed for nearly a couple of years.
03
DeFi classification
In a lot more than a couple of years, many existing projects have already been refurbished, but you will find very few real newborns. They truly are divided in to three categories, stablecoins, lending applications and decentralized exchanges. All three categories are centralized. The approach of USDT is in accordance with DAI, the financing of centralized exchanges is in accordance with Compound, and Binance is in accordance with dydx. The big difference between your two types is simply the big difference between decentralized and centralized services, anti-censorship, openness and transparency, and irreversible transactions. **
**The biggest big difference is that decentralized projects give the trust of assets to the code. Therefore , an easy understanding of the DeFi project now's that as long as the ownership of the asset is fond of the dog owner by the code, it conforms to the thought of a fresh DeFi project.
04
DeFi features
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The existence of pledged assets**.
Unlike traditional finance, many businesses are based on credit, such as for instance some small loans and credit loans. People decide whether to give you financing by evaluating your financial troubles status, work status, marital status, etc . The blockchain is essentially used to realize this group of credit system is extremely suitable, allowing individuals to own each of their own status data, but because the current development of the blockchain continues to be very early, many data structures are not perfect, making the credit-based endorsement The company is actually unable to develop.
It can be seen that the decentralized projects surrounding both major kinds of DeFi (borrowing/stable currency) are fundamentally only endorsed by mortgage assets, usually through over-collateralization of assets to have stable currency, after which use stable currency to fulfill Your own personal needs are over-collateralized.
Do more.
Because of the not enough usage scenarios of Token, a lot of borrowed Tokens (such as DAI) have fundamentally came back to the transaction. First, in order to preserve the value/or even boost the value, the large currency holding institutions will mortgage their assets to have income through lending (year 10%+). These assets flow into the hands of the borrower, and the borrower obtains its own risk return by short or long. The rise in the very first half 2019 can see an important upsurge in mortgage lending. Based on related knowledge, the majority of the borrowed coins have already been employed for long.
05
Ethereum and DeFi
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Ethereum DeFi. **
DeFi projects which are broadly speaking concerned is going to be based on the quantity of collateral or the quantity of lock-up. Those projects with high lock-up amount we have been knowledgeable about, such as for instance Maker, Compound, Dydx, etc ., are typical projects on Ethereum. When it is determined from the quantity of lock-up, nobody Or doubt the truth that a lot more than 90% of DeFi projects are built on Ethereum.
Actually , when lots of people look closely at DeFi, they also have to mention Ethereum. Ethereum could be the largest smart contract platform. It gets the second-largest ETH asset by market capitalization. It has a wealth of project parties and developers. Bitcoin cannot support contracts. Fang took this position well
Questions about Ethereum DeFi. **
Is there every other project that can replace underneath layer of Ethereum (see a lot of Pandora, cross-chain interoperability, Polkadot, Cosmos and other new public chains), and certainly will DeFi declare that the chain fades through cross-chain? Of course, the premise is that the development of DeFi itself must continue to improve.
Addititionally there is the impact of 1. 0 and 2. 0ETH on Ethereum. Sharding, PoS transfer, and EWASM will all have new requirements if not rewrites for new smart contracts. It's not clear whether large-scale dilemmas will occur at the same time. The conversion might not be completed until 2021.
06
DeFi token
**
DeFi without Token? ****
Many DeFi projects never have issued their very own tokens. Most of these projects are built on Ethereum. It really is indeed an intricate problem to style your own economic model along with Ethereum. You can have a look at the non-DeFi projects built on Ethereum, how to design your own Token model, and feel twisted no matter the way you look at it. **
Chainlink's oracle calls digest ETH, and the contract uses Connect to compensate the info provider; Loom's staking must enter Plasmachain from ERC20, after which locks in the contract on Plasmachain; IoTeX's staking supports the exchange of mainnet IOTX and ERC20, as well as supports Staking of both Token practices, the experience of both practices mixed to an individual is by no means straightforward.
After 2018, DeFi projects have already been designed into a Token-free mode (except Maker). A trend I judged is that DeFi projects have also begun to go back to the profit model of "providing services". The "providing services" in DeFi could be based on their very own What generated by the agreement, including the generation of DAI, the matching in Dharma, the transaction in Dydx, etc ., are not much not the same as the centralized method, but they have absolute transparency.
**Furthermore, the next upsurge in fee items could need to be decided by a decentralized community as opposed to led by the development team. Of course, ** doesn't rule out that the project uses the blockchain to create a semi-decentralized (Semifi) or centralized project, which aims to resolve the key dilemmas of centralized finance, however, not all, such as for instance asset ownership.
It really is difficult to guage the continuity of this Token-free method. Built under a large structure, it is difficult to style an ideal economic model. Although a lot of practitioners have indeed appeared, it has nothing at all to do with the lack of good some ideas. Looking right back at some projects which have already issued tokens, 0x ZRX, it looks a bit tasteless at present.
Additionally , pay special focus on projects such as for instance Cosmos and Polkadot offering underneath layer for development. CosmosSDK-based projects have a complete design model, and economic models are indispensable. For Substrate-based projects, if you want to use Polkadot's shared consensus, then these projects The problem is equivalent to that of the DeFi project on Ethereum. Of course, based on Substrate, you can design consensus, independent of Pokaldot, and come back to the specific situation faced by CosmosSDK. **
07
MakerDao specific example
In 2019, DAI and the MakerDAO that generated it became the most amazing in the DeFi landscape. But DAI is not a fresh thing, it is just a mortgage-generated asset. As early as 2014, BM realized the function of generating stable coins from mortgage assets on the Bitshares platform.
**On the Bitshares platform, users can acquire a number of anchored assets by staking BTS, such as for instance Bitusd that is anchored to USD, Bitcny that is anchored to RMB, as well as Bitgold that is anchored to gold. This mortgage anchoring concept is in Bitshares The system is very mature and contains a complete group of supporting facilities. There is a integral decentralized exchange (commonly called the inner disk in the community) to support the exchange between multiple trading pairs; gleam centralized gateway that can directly accept Bitcny/Bitusd and other anchors The deposit and withdrawal of assets; there are numerous DACs, etc ., this complete group of packages is now in the circle, and you can see similar figures every where.
Bitshares is indeed complete, can you envisage how people in the community think about MakerDAO? Actually , those individuals who have stayed longer in the circle understand that MakerDAO's origin is notorious. MakerDAO was born in December 2017. With the exception of the exchange of mortgage assets from BTS to ETH, the majority of the functions and Bitshares' stable currency function Very similar. People in the Bitshares community didn't show any good looks except to laugh at it.
Additionally , MakerDAO was built on Ethereum and used ETH for mortgage assets. During those times, the BitShares community and the Ethereum community were incompatible with one another. Some people in the Bitshares community believed this operation of MakerDAO had not been considered a fork, also it was a naked plagiarism; Others genuinely believe that MakerDAO is too trivial, and only a small the main functions in Bitshares are realized, plus they do not go seriously; many people directly look down on this anchoring mechanism and genuinely believe that the Bit series assets have failed enough. DAI can not succeed at all, it will produce black swans. **
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Black swan is just a sort of endgame occurring following the anchoring mechanism fails. This kind of endgame theoretically occurs in Bitshares and MakerDAO. It refers to the truth that once the mortgaged assets are in a specific period of time, the worth of the mortgaged assets shrinks dramatically, inducing the mortgager to keep Raise the position or repayment to ensure the career won't be liquidated. When a large numbers of mortgagers cannot perform, their collateral is going to be liquidated, and the liquidated assets is going to be sold at a discount. If you will find inadequate purchase orders in the market to receive the order, the mortgage The anchoring mechanism will fail.
The truth is that in the bear markets of 2015 and 2018, Bitshares approached the black swan many times. During those times, the price of BTS fell all the way, and lots of mortgaged BTS assets were forced to be liquidated by the device, but there were not many people in the market who took over. I simply watched the disk and saw a lot of trying to sell orders, and the costs kept going down, but there is nothing I could do. No body could eat so many trying to sell orders. The problem was acutely critical at that time. Can you envisage the psychological shadow of the holding a lot of Bit series assets behind this anchoring mechanism?
BTS was defeated such rounds of price erosion, which directly resulted in many people's suspicion about its anchoring mechanism. BTS is not worth anymore. Why can the Bit assets acquired by mortgage BTS have value? **Although the generation of stablecoins from mortgage assets is just a program execution, the worth of the mortgage assets is endorsed behind it. If you find an issue with the worth endorsement, the stablecoin even offers dilemmas.
The later story could be clear to everybody. Ethereum could be the second largest in market value. Bitshares was already used in 30. With the black history of community crowdfunding, the departure of BM, the incorrect direction of Bit asset development and other dilemmas, the Bitshares community has long been out of harmony. The Ethereum community speaks the same day. MakerDAO has grown up beneath the strong protection of Ethereum. Although DAI has only experienced bull and bear once, ETH assets have seen bull and bear strong confidence assets many times. The DAI obtained by collateralizing ETH, from birth to Currently, it is fairly stable at around $1, and the over-collateralization rate of over 150% is sufficient to offset multiple rounds of price shocks.
You realize, the BTS system has always required home financing rate in excess of 175%, and 150% of DAI hasn't collapsed, which can be enough to show people's confidence in the purchase price support behind ETH, which can be much stronger compared to the price endorsement of BTS.
It really is with the shelter of the big tree that MakerDAO has begun to show stronger vitality, and DAI assets have begun to be exported. We are able to now see DAI trading pairs on many decentralized exchanges, even on centralized exchanges. It can be seen that many people mortgage ETH, obtain DAI, after which buy ETH. This is actually the just like people mortgage BTS to have Bitcny, after which buy BTS.
Therefore , the trends of DAI and Bit assets are actually virtually identical. MakerDAO can also be walking through the path of Bitshares. One point that the former goes further than the latter is that new DeFi projects have begun to be developed along with MakerDAO. Applied, this really is certainly one of MakerDAO's luckier than Bitshares.
Considering MakerDAO and returning to the DeFi layout, actually , many DeFi projects are not as divine while the media said. There are a lot of beautiful and incredible data reports. I've summarized the story of MakerDAO and Bitshares. Probably the most profound experience is, good A well-thought-out project requires a good carrier, and fertile ground can offer opportunities for continuous growth of the project. **For entrepreneurs, to seize one direction and find nutritious fertile soil, the following point to do would be to work hard.
The idea of DeFi is too large. At this time, it is difficult to really have a DeFi project that may be large and comprehensive. Many of them are vertical applications. A brand new field must be developed from infrastructure to platform, and from platform to basic equipment. I believe that the development of DeFi has passed the fundamental stage of establishing infrastructure, and contains entered another application development node (to verify the integrity of the last infrastructure).
Considering the DeFi projects available on the market now, MakerDAO's stablecoin and lending are one type, the prediction market Augur is one, and the decentralized exchange Dydx is one. You will find very few general categories, but due to the particularity of DeFi, There will surely be some emerging lending options developing.
08
DeFi's future direction
Currently, you will find 3 target areas for DeFi projects, stablecoins, lending, and Dex. Some people say that there should be a prediction market. *From the definition of DeFi in the DeFi Overview, the prediction market must be viewed as one of the earliest DeFi applications. Like Augur, people use assets to bet on probabilistic events and get accurate returns.. This is actually the operating mechanism of Augur, but Augur is not developed because of the immaturity of the oracle. *In addition, people's understanding is too shallow in the first stage, and the traffic in the prediction market is actually low, therefore i temporarily put the prediction market Excluded from the present essential areas. **
The development of the three fields are relatively independent, plus they have achieved certain results in exploring stability. Before 2019, there were very few intersections between your three fields, but because they were all on the basis of the relationship on Ethereum, after 2019, you will have more and more cooperation between these three fields. Among them, stablecoins are actually The infrastructure of the latter two, stablecoin lending and trading pairs on Dex, can well bear the medium and certainly will also bring traffic. Dex itself will integrate lending functions to offer users with more trading options. Based on this development trend, you will have more and more cross-experiences among the three.
But an awkward situation is that the integral coverage of the three fields of stablecoin, lending, and Dex is very small. An easy to use example is that centralized exchanges can offer a number of products to generally meet the wants of transactions and peripherals, and multiple trading currency pairs. Leverage, futures, financing and debt financing, and OTC, etc ., while Dex can only do currency transactions, and it's also only ERC20 currency transactions. On such basis as transactions, dydx adds decentralized lending and leverage. Satisfying the whole trading needs continues to be much worse, and the final combination of the three fields could be the trading pair with DAI on Dex, while providing mortgage ERC20 assets to borrow DAI, after which there is absolutely no more.
09
DeFi projects need more asset classes
Financial services are not that simple!
Based on my understanding of financial services, general financial services revolve around assets themselves. Such assets could be physical assets, virtual assets, credit assets, or mortgage assets. The farther from the particular value of financial services, the more "endorsements" are expected for his or her products. The present development of social financial services can also be because of the comprehensive services surrounding assets, such as for instance guarantees, credit enhancement, insurance, and laws. They're all ways of endorsing assets to narrow the "distance" between them and actual value.. Nowadays, many DeFi projects are financial services themselves, however the corresponding products are really limited, and have less relationship with the available asset classes of the blockchain. Behind this limitation could be the contradiction between your current blockchain and real life.
Although blockchain explorers are constantly seeking solutions, it has always been difficult to introduce real assets into the blockchain. In this technique, seeking new blockchain assets has turned into a temporary direction.
Among them, the introduction of BTC assets into the contract is amongst the issues that are being solved intensively. BTC does not have a programmable contract, and the cross-chain of PoW has always had the issue of finality, resulting in cross-chain introduction that can't be implemented well. New cross-chain projects are pushing their very own homogeneous cross-chains. Heterogeneous cross-chains are fundamentally in a stagnant state. You can see that Cosmos cross-Ethermint has been developed for so long.
Therefore , in the direction of introducing BTC assets, people started to tend to the solution of the DAO organization. Among them, WBTC is just a solution. WBTC is just a sort of ERC20 that members of the DAO organization store BTC at a ratio of 1: 1 and issued on Ethereum. Tokens, WBTC could be circulated on the Ethereum protocol. Many Dex have integral this WBTC trading pair to counteract the BTC trading pair in CEX. This solution is effective and fast, but it addittionally requires science and trust..
10
Derivatives of Staking Assets-ABS
Staking assets are another asset that everybody desires to solve. Based on statistics, the present value of staking-locked assets is about six. 4 billion U. S. dollars, which really is a large asset class, but there is absolutely no method to circulate due to the lock. When solving this dilemma, I found this form of asset has a typical feature, that is, it has a fixed income right. The corresponding product of this sort of income right in traditional financial services is named ABS (asset securitization).
ABS is this sort of asset derivatives, with asset attributes, but a bit from real value assets. Turning staking assets into ABS blood circulation is definitely an innovation in the DeFi field. This innovation is logically and theoretically compatible with DAI. The logic is significantly similar, that is, the mortgage endorsement obtains equivalent value. Mortgage ETH to have DAI, and staking assets to have ABS. The big difference is that DAI and ABS perform different functions.
As more and more PoS consensus projects landed in 2019, Staking assets is likewise enriched. XTZ, ATOM, DOT, etc ., corresponding to ABS assets will also increase. The generation of such assets brings DeFi Come more possibilities.
Under normal circumstances, each time a new asset is generated, a number of services that run across the asset is going to be derived. If this service is decentralized, it'll be more complete, exactly like if you will find multi-asset trading pairs in DEX, additionally, there are Decentralized deposits and withdrawals, gleam reason for decentralized financing and debt financing.
The ABS in traditional financial services requires multiple rounds of endorsement for assets. The cumbersome links are a lot of to assume. Guarantees, credit enhancement, insurance, and laws won't be pulled down. The ABS of staking assets, in my understanding That said, many links could be omitted, because the endorsement of the asset itself could be the public chain, and the thing of credit enhancement can also be the public chain. Here, some unqualified ABS products have already been screened out. The law and insurance are products that require to be increased and decentralized.
Currently, you will find already many teams taking care of projects in various vertical fields. The Stafi_Protocol project is turning staking assets into ABS. There are also projects in neuro-scientific decentralized insurance which are exploring. Credit enhancement is not seen yet, however it must not far.
It can be expected that with the development of DeFi, you will find positively a lot more than three essential areas, but will gradually increase. And ABS, I believe could be the fourth key area that is almost certainly to develop into DeFi in the future, namely stablecoins. Borrowing, Dex and ABS. *ABS assets, as a solid endorsement asset, are closely related to Dex and certainly will directly become an asset traded on exchanges. Moreover, *ABS assets have an average tendency to decentralize, that is, endorsement is created by public chains and The code guarantees that blood circulation in Dex is very good and "politically correct".
Additionally , staking assets can also serve as collateral, generating stable coins or lending. Following the Ethereum transfers to the PoS consensus, the big difference between staking ETH to create DAI and staking ABS (ETH) to create DAI is only the big difference in value. The worthiness of the latter can be above the worth of the former, or that the former is wholly included.
Of course, you can issue ABS in a centralized way, but this returns to the issuance of traditional ABS assets. The issuer of traditional ABS assets must seek the endorsement target of the original assets. As well as the public chain endorsement, in addition, it must carry out a number of work such as for instance credit enhancement, guarantee, insurance, and law. If such operations are not carried out, the mortgaged assets are completely centralized. In the hands of the issuer, comparing and trusting the Stafi code, you will need to pay more trust to trust such centralized ABS assets.
11
summary
So in summary, assets from staking to ABS are becoming an interest-bearing blockchain asset. This asset supports the integration of various DeFi applications, as well as gets the potential to be the underlying asset of DeFi projects. It will be the ongoing future of DeFi. Field, a vital part, stablecoin, lending, Dex and ABS. **
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Of course, explorers will continue to look for the entrance of physical assets to the blockchain. USDT is definitely an example. Later, to TUSD, PAX, after which to the recently controversial Libra. Although all of them are stable currencies, the look of them proves that individuals The determination for connecting physical assets to the chain.
12
question Time
Question: Would it be denied that DeFi could be the most grounded form of implementation in the current blockchain? If so, what is the main reason? **
I believe it definitely is, because all DeFi now's for currency holders. The DeFI project provides many operation interfaces for currency holders, which users can use directly, but you can still find many concepts that require to be comprehended throughout the use process, and there could be some operational dilemmas, but this doesn't prevent it from being the closest to an individual The decentralized application used.
Currently, I still have not seen that various other applications can offer some tools to users to directly interact with blockchain technology, aside from DeFi.
Question: What challenges must be overcome when DeFi develops?
Along with asset classes, let us speak about a challenge from a developer's perspective. The developer chooses whether to operate the project in an entirely decentralized manner. When we define some extent of decentralization and centralization, actually , we would not have a unified standard. When we define this standard, we shall have some tilt within our minds. The explanation for this tilt may come from technical difficulty., May be the technology, the difficulty could be insurmountable difficulty.
It may be that the rapid launch of the project is some factors of the project development speed, plus some will be the needs of the business model. These factors will be the decentralized method that the project causes the project to choose to make use of.
Currently, some typically common techniques, particularly some techniques in Silicon Valley, they will clearly explain many can and can't be done, and analyze many technical difficulties and key factors clearly, in order that everybody can see the project side. Is it reasonable to help make the current choice?
Recently, I was inspired by watching DianDianCoin. Like the question of whether checkpoints must be centralized is stated in the white paper. It is extremely difficult for us to accomplish decentralization whenever you can, so we work with a centralized approach to achieve Raise the cost of double-spending attacks on the entire blockchain. Although it was very clear, it absolutely was criticized by lots of people, also it was also an issue that many project parties would encounter.
Question: Incidentally, to add to this question, is it possible to shortly introduce the rumors that Compound has a backdoor?
This dilemma seems to be well-known to everybody. Ordinary users don't appear to pay attention when using it. That is also an average contradiction, that is, would you trust the team? If you don't believe it, be careful if the project side will leave a right back door. You will find even rumors that MakerDao even offers backdoors, but these exact things won't be made public. Actually , any project must be upgraded, and the master of any project dare maybe not be 100% sure that his project doesn't have bugs.
Without confirming whether there's a bug, that he can't be sure that he can solve these existing dilemmas. Actually , everybody needs to have a consensus that you need to consider a problem when using decentralized applications, that is, whether your assets are What could be lost, maybe you have expected anything?
Question: Will DeFi derivatives have a big bubble risk, just like the subprime mortgage crisis?
Once the available assets are relatively small, the derivatives is going to be farther and farther from the original assets, and its own endorsement could have a very long chain. If one link in the chain breaks the entire chain, you will have dilemmas, so In this case, long-term development is unhealthy, so we have been working very hard to bring new asset types into this DeFi field, that may prevent this risk well.
And I believe the subprime mortgage crisis will always happen. In the end, human beings are greedy. Some people use this system, plus some people use it, that may cause certain contradictions, dilemmas as well as crises.
Question: In the field of staking, we now have discussed the issue of uncomfortable staking gains along the way of price decline. Can you really achieve a breakthrough with DeFi? **For example, using stablecoins to earn interest?
During staking, individuals were unable to provide timely feedback on the secondary market. Consequently, even though the interest was received, the entire principal was still not as compared to the staking income. Then DeFI hopes to make use of the contract method, such staking Assets may then flow, letting it answer market prices regularly to resolve some dilemmas during the period of inefficient token lock-up, after which after these coins flow out, you may also make many types of lending options, such as for instance stable coins or For PoS ETFs, these can be carried out, and they're an easy task to do.
Question: DeFi is indeed reliant on Ethereum, which can be maybe not the very best news for the DeFI project itself, but can it be good news for the long-term support of ETH prices?
I believe this really is an open question, and there's really not a way to provide an optimistic answer. Lots of people suggest that you want to create a DeFi project on Ethereum, because Ethereum already has a siphon effect, that is, lots of people need to use Ethereum in order to make better use of existing infrastructure when doing projects. Take action related, because DEX is on Ethereum, stablecoin is on Ethereum, and lots of applications may also be on Ethereum.
So if you are performing a project on Ethereum, particularly a DeFi project with a currency model, if your currency is ERC20 compatible, or if a few of the derivatives you send are ERC20, you may easily circulate in this ecosystem. Find value swaps, which can be very beneficial to the development of your project.
That DeFI is created on Ethereum is definitely beneficial to Ethereum itself. Pan Chao also asked a question on the last roundtable panel, can there be any public chain supporting the DeFi project? Actually , nobody immediately answered. I believe it just doesn't. In this case, does it support the price of Ethereum in the long run? I believe it is somewhat, but that he can not measure it quantitatively. At precisely the same time, it will encounter various market factors that make it very complicated. Therefore , it is hard to say that the benevolent see benevolence.
