How Defi evolve from blockchains
First we have contract, price provider, saving, tokens
Then we have trade, lend, borrow and insurance
To complete that, you need yield to activate people
leverage it, options, etc. will then be introduced
2. Let’s see how you get your profits on Defi
Say Terra for example, you deposit your UST which is a kind of stable coin on Anchor Protocal, you got aUST which will capture the value generate by bond Assets.
Or you can join CRV war to maximize your profit, do LP or mix ways above.
How to mix it? Say yearn.finance for example
The problem with it is that
1)This is complex and might involve more risk
Compare White Whale and Anchor, White Whale balance UST price and generate more than Anchor but TVL is less because it’s more risky
2)the APY changes and you need to check for it more often
3. What’s the future of Defi
The evolution of Defi is that it’s less limited compare to central finance, and we can see it’s useful for both Ukraine and Russia during war period.
But to maximize it’s benefit, we need to solve the problem: how can we use those tokens in the real world. This is not just a technical problem(for instance: transaction limits), but also contains politic/law problems(for example, how to audit it)
4. Security first when you want to join Defi
Finally, there are some projects call itself Defi 3.0, I would rather call it auto investing strategies which doesn’t perform well so far, some of it even sell nodes and the audit of it is fake, be aware of those projects.