Web3 Experts Discuss Decentralized Finance: Current Situation, Trends, and Investment Opportunities

Alex and Mindao had an in-depth discussion on the current status, future trends, and investment opportunities in Decentralized Finance.

The Essence and Value of Decentralized Finance

The public opinion believes that DeFi is an extended version of Bitcoin, bringing traditional financial services onto the blockchain. The core value of DeFi lies in restoring finance to an information network, eliminating the barriers of traditional finance and significantly improving capital efficiency.

Current Status of the DeFi Sector

The infrastructure of Decentralized Finance ( stablecoins, lending, AMM ) has been highly standardized and commoditized, while the concentration of leading projects has increased. Emerging trends include:

1. The applications combining DeFi and CeFi are increasing.
2. The emergence of profitable applications that do not rely on tokens
3. Derivatives and other high-frequency trading applications are developing on high-performance public chains.

The Impact of Changes in the US Political Landscape on the Cryptocurrency Industry

The Republican Party coming to power is a positive development for the cryptocurrency industry, as they may introduce a dedicated regulatory framework. However, cryptocurrencies have become a partisan issue, leading to the risk of policy fluctuations. Bitcoin still faces resistance in becoming part of the national reserves.

The Moat of DeFi Projects

1. Continuous innovation capability
2. Strong brand effect
3. Security Assurance

Decentralized Finance Investment Advice

1. The investment portfolio should include a certain proportion of non-mainstream coins.
2. DeFi projects are worth allocating in this track.
3. In cryptocurrency investment, Decentralized Finance should account for a significant proportion.

Overall, Decentralized Finance is still in a rapid development stage and will continue to innovate and integrate with traditional finance in the future, which is worth ongoing attention.