What Might DeFi Be Like In 2023?

DeFi is only a few years old and saw an explosion of growth just before and then during the bull market. Since then it's slumped off a great day however in many cases the core DeFi platforms have been battle tested and are producing some rather good results during this deep bear market. For example pancake swap even though prices have fall has held it's dollar value range for a while now while still pushing out a rather decent APR rate. I think that says a lot about a platform that's still able to produce revenue to hold the native token price and in some cases better it during a very cold and dark crypto winter we have been having.

The Fall Of Exchanges

After the blowout of FTX happening, Stable coins losing pegs and exchanges in general just taking a beating it's become clear that the vast majority of people that entered into crypto learned the hard lesson of don't keep your funds on exchanges. While the very same could be said for DeFi as well there is still a push to expand what is known as a DEX a decentralized exchange. While this all sounds well and good I still want to make it clear that any time your funds don't need to be on an exchange TAKE THEM OFF and hold your funds in your own wallets with your own keys.

DEX will be using smart contract and other features and I see them taking off big time in the next bull run over centralized exchanges. The last crypto rally gave us A LOT Of people entering on centralized exchanges and then realizing what a mess it is to be doing that.

What I'd really like to see implemented more is something like Hive has. Where you still control your main stack but you can delegated it out and earn rewards on it. Perhaps the interest earned instead would go to the person you're delegating instead of the core account like what currently happens on hive. These small tweaks would a least provide more security to your core holdings while still providing liquidity and flexibility that's needed in the markets.

Institutional Investors

These will come back but right now during a time when investors can put their money into low risk options such as bonds and even savings accounts and earn a decent APR on their funds it doesn't make much sense to put it in a much riskier investment like crypto for maybe a 2% more gain. It's because of this investors are currently out of stocks and crypto. That's another core reason I don't see the next bull market happening until the fed rate comes back down to around the 2% range again. To me it's really as simple as that for why funds are flowing and where they are flowing.

Your Digital Identity

We have seen a rather large push on this recently by offering up a way to put your information on the blockchain without directly tying it to you the person some how. The vision of web3 ultimately is for your to lock in and hold that identity. This way when a new application launches you can use your web 3 identity and lock in that username, access your funds, nfts etc. Defi will also most likely play a critical role in this.

Check out CubDeFi and PolyCub

*This article is for entertainment purposes only and is not financial advice

Posted Using LeoFinance ^Beta