DeFi is a hot topic recently. How about the development of DeFi on Conflux? And where will Conflux go in terms of finance?
How do you think of DeFi investment and mining? What will Conflux do in finance field?
DeFi protocols are built on top of the underlying public chain infrastructure to increase the liquidity of the underlying assets. Various staking and lending protocols also help to lock massive native tokens on chain through locking and staking, which is significant for the ecosystem of the public chain. According to the data of DeFi Pulse, since June 15 when Compound started Yield Farming, the total locked DeFi volume in the crypto market has increased from $1 billion to $95 billion, of which over $30 billion are locked in Ethereum (6.4 million ethers). To lock up assets without sacrificing the activity of the ecosystem, DeFi projects are necessary application scenarios of public chians. The hotness of DeFi projects brings the surge of the Ethereum value.
Nevertheless, the whole DeFi market value has just exceeded $100 billion with the popularity of yield farming, which is much less than the market volume of traditional finance. Yield farming is only a choice of the project initiator to motivate the community. DeFi application scenarios are usually limited to the Ethereum, and users are often within a circle of “big whales”. The financial blue ocean behind DeFi is very large. To make breakthroughs on public chains, we need to create more valuable DeFi appluication scenarios in the ecosystem instead of simply boasting the concepts and fomo feelings. Back to technology innovation and product creation, DeFi market and public chain will have a promising future.
Some teams from the Community have already made some transplant and simple innovation on chain similar to Compound, Uniswap, Nexus insurance and Synthetix contract.
Conflux is still in the phase of chasing the better performing players. When these projects are on, welcome to have a try. Currently, you can try DeFi on Conflux chain, MoonDex, an order book DEX, similar to IDEX. MoonDex applied for the sponsorship of the Conflux Foundation to pay for gas fees, so users can experience MoonDex for without gas fees. The transaction cost is not an obstacle for users on MoonDex.
With lower cost, medium and small users are on the same level with big whales and institutes, greatly increasing the user population of DeFi. With the large user population, the ecosystem will be larger. The products mentioned above are under development by community members and will go live in the future. The next wave of DeFi hotness may burst out on the Conflux chain. Welcome to pay attention to Conflux and take part in the building of Conflux ecosystem.