The Current Status and Future Outlook of the DeFi Sector

In this episode, we invited senior expert Min Dao from the DeFi field to discuss the current state and future development of the DeFi track.

The public believes that DeFi can be understood as an expanded version of Bitcoin. In addition to currency, it also includes various services in traditional finance, such as trading, payments, and lending. The core advantage of DeFi lies in its restoration of finance to an information network, achieving efficient information transmission and greatly improving capital efficiency.

Regarding the current situation of the DeFi sector, Mindao pointed out that three major infrastructures have now been formed: stablecoins, lending, and AMM. Although the number of innovative projects has decreased, the industry shows a trend of both commoditization and increased concentration. Some emerging projects like Pendle and Ethena have demonstrated good market fit.

Looking to the future, Mindao believes that the integration of DeFi and traditional finance will become deeper. He predicts that there may emerge a model of "twin" relationships between DeFi protocols and listed companies, achieving a linkage between coins and stocks. Large financial institutions entering the DeFi space may adopt a conservative approach similar to Coinbase, laying out their plans in a controlled environment.

For investment strategies, Minda suggests paying attention to projects with continuous innovation capabilities and good brand effects. He believes that ordinary investors can allocate a portion of their funds to Decentralized Finance projects as an important part of their investment portfolio.

Overall, despite the challenges faced by the DeFi sector, there remains significant development potential. With improvements in the regulatory environment and advancements in technology, DeFi is expected to play a more important role in the future financial system.