Discussion on the Current Status and Future Trends of Decentralized Finance

Recently, senior expert Min Dao in the DeFi field was interviewed and expressed his views on the current state and future trends of DeFi.

Definition and Value of Decentralized Finance

The civil path believes that DeFi can be understood as an extended version of Bitcoin, representing the realization of all traditional financial services on the blockchain outside of Bitcoin. Compared to traditional finance, the greatest advantage of DeFi lies in restoring finance to an information network, eliminating obstacles such as national borders and regulation, and significantly improving capital efficiency.

Decentralized Finance Track Status

The civil path points out that the infrastructure of Decentralized Finance has been highly standardized, mainly including three categories: stablecoins, lending, and AMM. At the same time, DeFi also shows a trend of coexistence between commoditization and increased centralization. The new development direction is the combination of De-CeFi, such as MakerDAO utilizing government bond yields, etc.

The Potential and Evolution of Decentralized Finance

The public believes that DeFi still has huge potential, and in the future, there may be a model where DeFi protocols control publicly listed companies. When traditional financial institutions enter DeFi, they may adopt a model similar to Coinbase, deploying DeFi components on a controllable blockchain.

Notable Decentralized Finance Projects

The article specifically mentioned the two projects Pendle and Ethena. Pendle has found market demand in the LSD and Restaking sectors, while Ethena has tokenized trading strategies, achieving significant growth. In addition, tokenless DeFi applications like Polymarket are also worth paying attention to.

The Moat of DeFi Projects

The civil path believes that in the long run, the moat of DeFi projects mainly lies in continuous innovation and brand value. Security is also a key factor.

Decentralized Finance Investment Suggestions

For ordinary investors, Mindao suggests that a portion of funds (, such as 30% ), can be allocated to DeFi and other non-mainstream coin projects. In altcoin investments, DeFi projects should account for at least 50% of the allocation.

Overall, the public holds a positive attitude towards the future development of Decentralized Finance (DeFi), believing that with the expansion of the concept and ongoing innovation, there is still significant room for growth in DeFi.