Liquidity has driven DeFi’s growth to date, so what’s the future outlook?
On-chain liquidity was the catalyst of DeFi Summer 2020, but what will lead the DeFi markets to hit a trillion dollars within another year or two? In mid-February 2020, the total value locked within decentralized finance (DeFi) applications first exceeded $1 billion. Fueled by the DeFi summer of 2020, it wouldn’t even take a year before it multiplied 20-fold to reach $20 billion and only another ten months to reach $200 billion. Given the pace of growth so far, it doesn’t seem outlandish to imagine the DeFi markets hitting a trillion dollars within another year or two.We can attribute this....
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The cross-chain liquidity protocol has put special focus on user experience with a simple user interface without them having to deal with complex virtual networks. At a time when the decentralized finance (DeFi) protocols have seen a significant outflow of funds from the market, maintaining liquidity has become even more challenging. Liquidity plays a central role in the DeFi ecosystem, and many protocols over time have come up with various new solutions to keep liquidity pools brimming. The latest trend in the liquidity market is focused on cross-chain solutions.Many experts believe....
Decentralized routes of lending and borrowing through smart contracts are allowing DeFi finally to overthrow the traditional finance sector. The world of decentralized finance (DeFi) is gradually expanding to encompass a significant share of the global financial lending space by virtue of the inherently trustless manner of operation and the ease of accessing capital. As the crypto ecosystem has grown to a $2-trillion industry by market capitalization, new products and offerings have emerged thanks to burgeoning innovation in blockchain technology.Lending and borrowing have become an....
DeFi’s tremendous growth hasn’t come without obstacles, as the nascent industry still struggles with high costs, failed trades and front-running. IDEX, a San Francisco-based decentralized exchange, has unveiled new protocol upgrades designed to solve two of the biggest issues with decentralized finance, or DeFi — slippage and front-running. The exchange claims that its Hybrid Liquidity protocol solves these challenges by combining an order book and trading engine with the liquidity pools of an automated market maker, or AMM. “The novel exchange design protects users from the most glaring....
With Uniswap’s TVL growing from $13.7 million to $8.5 billion since launching its v2 iteration, some onlookers believe the DEX’s v3 launch could spark the next DeFi rally. With the total value locked in decentralized finance on Ethereum now $89 billion, the market is eagerly waiting to see if the launch of UniSwap v3 could be the catalyst for DeFi’s next big bull run. Uniswap v3 promises advanced new features and opportunities for yield generation with its launch scheduled for May 5.Uniswap is emphasizing three new features for liquidity providers — customizable capital deployment across a....
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