DeFi weekly selection 丨 DeFi lockup value is approaching US $ 1 billion. Will the "ruler" Maker be overthrown in 2020?

DeFi content this week includes:

  1. DeFi data for one week: the total value of DeFi hedging reached $ 959 million;
  2. Binance predicts 2020 DeFi trend: Maker's dominance may be challenged by Compound and Synthetix;
  3. Who will DeFi No.2 turn to?
  4. DeFi golden sentence of the week
  5. DeFi project progress in one week
  6. to sum up

According to the data provided by dapptotal, the 34 Defi projects in its statistics currently hold a total of 959.5 million US dollars of lock-up funds, an increase of 6.92% over the previous week, of which Maker lock-up of 359.5 million US dollars, accounting for 37.47%, EOSREX lock-up of 22071 million US dollars, accounting for 23%.


In terms of lock-up volume, the amount of ETH lock-ups has increased by about 80,000 ETH in the past week. For EOSREX, although its lock-up value has increased by 15.46% year-on-year, its locked EOS volume has fallen below 70 million EOS , A year-on-year decrease of 1.6 million EOS, or in the short term may continue to be affected by EIDOS.


Binance predicts 2020 DeFi trend: Maker dominance may be challenged by Compound, Synthetix

Last week, the Binance Research Institute and the Dapp.Review team jointly released a DeFi research report . The researchers first summarized the development of the Ethereum DeFi ecosystem in 2019, and then explored alternative DeFi platforms other than Ethereum (such as EOS, Binance Chain, Bitcoin, Cosmos, etc.) Finally, the researchers also made the following predictions on the trend of Ethereum DeFi applications in the article:


  1. The end of Maker's dominance: It is expected that in 2020, regardless of the size and the number of locked positions, Compound will succeed Maker. In addition, Synthetix may also challenge Maker's status;
  2. Maker's DSR integration: Although we expect that Maker's dominance may be challenged, it will still be one of the core products of the DeFi industry. Although new collateral (such as BAT) has received most of the attention, the Dai Savings Rate (DSR) may become one of the most important interest rates in the DeFi space;
  3. Emergence of less mortgage or even insufficient mortgage solutions: We are considering new solutions such as social capital recovery, credit scoring, zero-knowledge proof and credit market DAO. We also look forward to further leveraging the time value of monetary relationships to allow users to borrow with promises of future expected cash flows. Using Sablier's experiments can pave the way for dedicated protocols.
  4. DeFi derivatives are released on the Ethereum mainnet: The Convexity protocol and other protocols (such as the UMA protocol) are likely to bring new trading opportunities to the DeFi space. However, from the perspective of option underwriters, people remain skeptical about how to manage risks and returns. In addition, hedging solutions for DAI price risk, such as SwanDai, may also be deployed on the Ethereum mainnet;
  5. USDT is integrated into some DeFi protocols: As most of the circulating supply of USD Tether migrates to Ethereum, it will likely be integrated into some DeFi protocols in the near future. For example, the Compound protocol will include USD Tether.
  6. The growth of "one-stop" solutions: platforms like Zerion and InstaDApp, their purpose is to provide users with a better experience and simplify the use of DeFi. Specifically, these single UIs allow interaction with various DeFi platforms. In addition, protocol aggregators like DeFiZap and deserve attention. Because they usually allow users to minimize gas costs and avoid the risks of specific platforms.


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Who will DeFi No.2 turn to?

Based on the size of the lockup, the current Maker is unquestionably ranked at the top of the DeFi project ecology, but its dominance seems to be slowly weakening. In the above-mentioned Binance Report, researchers predicted that Compound and Synthetix may challenge Maker's status in 2020, while Jorge S's view is more conservative. He believes that Maker will still occupy the top position in the DeFi field in 2020, and No. 2 competition may be fierce.

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Among them, Synthetix generates a derivative transaction model due to its native token for collateral projects, which makes it sit on the throne of Ethereum DeFi Ecology No. 2 in the short term, but this model also has huge risks. As far as the project is concerned, its foundation is not stable, and it can easily cause a catastrophic bankruptcy.

In addition, the author Jorge S also briefly mentioned the two Ethereum ecological DeFi projects, Compound and Uniswap, but expressed not very optimistic speculation.

DeFi golden sentence of the week

  1. "Having some magical on-chain identities will not make unsecured / low-mortgage DeFi lending possible in the short term."-Taylor Monahan, founder and CEO of MyCrypto
  2. "Distributed applications will require KYC, and bitcoin- will never need KYC, and Bitcoin is the real 'DeFi'"-Blockstream member Zack Voell
  3. "People always complain about how complicated DeFi is. Have you ever eaten bread? You need to know how much ingredients it has, what shipping methods you have experienced, how payment and testing are, and then you go to the store to buy bread. ? "-Viktor Bunin, Bison Trails Protocol Researcher

DeFi project progress in one week

  1. Dai deposit rate increased to 6% ;
  2. The Aave protocol was officially launched on the Ethereum mainnet ;
  3. Turkish University Blockchain Center BlockchainIST will develop Defi products on the Ava platform

to sum up

Although Maker has a leading edge in the DeFi field for the time being, this advantage does not seem to be insurmountable. From the perspective of hedging value, EOSREX also led Maker in June and July 19, and the growth trend since Look, Compound is significantly better than Maker. In addition, Compound plans to access the largest stablecoin USDT in the cryptocurrency market, and its explosive power will not be underestimated. In addition, the DeFi application of BTC cannot be ignored.

In short, while the DeFi market will usher in a new round of 2020, it will also be full of unknowns. Solving problems such as high pledge rates and barriers to entry may be the key to competition.