# ReDeFining DeFi

> A sectoral deep dive

**Published by:** [Coin Kotei](https://paragraph.com/@coinkotei/)
**Published on:** 2024-12-13
**URL:** https://paragraph.com/@coinkotei/redefining-defi

## Content

Based on the original datonomy™ methodology and the publicly available approximated list of underlying assets as of late 2022, I came up with a structured plan for re-evaluating the existing framework, specifically focusing on the decentralised finance (DeFi) sector and its sub-sectors, since it encapsulates about 20% of the entire classification and arguably has the most innovation happening.As a result of the sub-sector analysis, the following updated token analysis framework is proposed:301010, Decentralised Exchanges Definition: Protocols enabling peer-to-peer asset exchanges using automated market-making or order book models. Example: $UNI301020, Derivatives Trading Definition: Platforms facilitating the creation and trading of derivatives like options, futures, and synthetic assets. Example: $DYDX301030, Decentralised Lending Definition: Protocols offering lending and borrowing services, often using collateralised assets in liquidity pools. Example: $AAVE301040, Stablecoin Issuers Definition: Protocols managing the issuance and governance of stablecoins. Example: $MKR301050, Prediction Markets Definition: Protocols enabling users to wager on the outcomes of events, leveraging blockchain-based decentralised predictions. Example: $GNO301060, Asset Management Definition: Platforms offering portfolio management tools for optimising yield or managing risks in DeFi. Example: $YFI301070, Crowdfunding Definition: Platforms enabling peer-to-peer funding for projects using tokenised governance mechanisms. Example: $GTC301080, Insurance Definition: Protocols offering decentralised risk mitigation services, such as smart contract failure or hack insurance. Example: $NXM301090? Yield Optimisers, TBD Proposed Definition: Carving out protocol-specific yield farming out of Asset Management due to its growth in popularity Example: $CVX3010100? Liquid Staking, TBD Proposed Definition: A sub-sector for liquid staking governance tokens due to staking innovation and not a direct fit into Decentralised Lending or other sub-sectors Example: $LDO3010110? RWA Tokenisation, TBD Proposed Definition: A sub-sector for RWA initiatives facilitating the tokenisation of physical assets and not a direct fit into Decentralised Lending or other sub-sectors Example: $ONDO3010120? Restaking and Liquid Restaking, TBD Proposed Definition: A sub-sector for restaking and liquid restaking governance tokens due to restaking innovation and not a direct fit into Liquid Staking or other sub-sectors Example: $EIGENThis proposed structure ensures alignment with the original methodology while addressing the rapidly evolving DeFi landscape.I would be happy to hear your thoughts on the additional sub-sectors, proposed methodology and approach, as well as prioritisation for the future analyses' direction.Follow for first sub-sectoral analyses in the coming weeks, introducing new assets to each sub-sector, removing the old ones from the original methodology and cross-sectoral performance review for the year of 2024 as we wrap up this exciting year and gear up for an even more exciting 2025.Sources:https://www.msci.com/documents/1296102/33887102/Datonomy+Methodology.pdfhttps://sectors.coinmetrics.io/https://coinmetrics.io/datonomy/https://gitbook-docs.coinmetrics.io/reference-data/datonomy-overviewhttps://docs.coinmetrics.io/api/v4/#tag/Catalog/operation/getCatalogExchangeAssetMetricshttps://coinmetrics.substack.com/p/state-of-the-network-issue-277

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