Golden Observation | DeFi enclosure movement spreads to CEX, how far can it go?

The DeFi craze continues.

As of press time, according to Debank data, the total lock-up volume of DeFi has reached 12.808 billion US dollars, and the lock-up volume of Sushiswap, which has only been online for 7 days, has reached 1.514 billion US dollars.

This wave of "decentralization" initiated by the technology party and driven by capital has attracted all the attention of the currency circle, even the centralized exchanges, with its unimaginable wealth creation effect.

On September 1, SUSHI landed on the three major exchanges of Huobi, OKEx and Binance in one go, and then its price rose all the way, reaching a peak of $11.17. This is probably the first project that has been continuously launched on a top-tier trading platform within less than 100 hours of its launch. Apparently, the enclosure movement around DeFi is on.

Golden Evening News | List of important news on the evening of January 30: 12:00-21:00 Keywords: Tether, Tianqiao Capital, DeFi research report, Cardano

1. In 2020, the settlement volume of ETH and stablecoins on the Ethereum chain will exceed 1.6 trillion US dollars

2. Tether completed the on-chain conversion of 250 million USDT tokens

3. South Korea released the first government-led DeFi research report

4. Twitter founder Jack Dorsey: "little interest" in building decentralized Twitter on the chain

5. Tianqiao Capital: Bitcoin will be the best technology stock in the next 10 years

6. Cardano public test network Mary hard fork upgrade will come into effect on February 4th

7. EnzymeFinance, a decentralized asset management protocol, will integrate with Chainlink

8. Co-founder of Morgan Creek: A new generation of retail investors will break away from traditional markets and flock to encrypted markets [2021/1/30 18:29:05]

"Judging from the enthusiasm for listing DeFi project tokens on the second-tier mainstream platforms, they seem to have forgotten the concept of 'listing fees'. This is anti-monopoly and anti-hegemony, which also reflects that DeFi has brought more decentralization market characteristics.” Chen Mo, an in-depth participant in the DeFi project, told Jinse Finance.

Jinse Finance data broadcast that the overall market value of cryptocurrencies has shrunk by about 386.6 billion RMB in half a month: According to AICoin data, the current total market value of cryptocurrencies is 2,495.9536 billion RMB, which has shrunk by nearly 386.6 billion RMB compared with the market value of 2,882.5911 billion RMB on May 6 RMB. The overall market value of Bitcoin has declined. The current market value of Bitcoin is 924.6 billion yuan, accounting for 37.04% of the entire cryptocurrency market value. The ratio has increased by 0.79%; the current market value of Ethereum is 453.3 billion yuan, accounting for 18.16% of the entire cryptocurrency market value; the current market value of Ripple is 174.5 billion yuan, accounting for 6.99% of the entire cryptocurrency market value. [2018/5/21]

Bao Erye said that the development of DEX has further restricted CEX, and such things as data smashing may become less and less in the future. In the future, it may become more and more difficult for small CEXs to survive, and large CEXs will also consider transformation or develop their own DEX products. the

Jinse Finance live report Fanwang co-founder Cheng Jie: hope that all kinds of media can carry out integrated marketing: Jinse Finance live report, at the 2018 Global Blockchain Elite Summit, Fanwang co-founder Cheng Jie gave a presentation on "Blockchain Communication New Fengxiang gave a live speech on the theme of online live broadcast + offline large-screen all-media integrated marketing. She pointed out that both blockchain media and projects are facing pain points. Differentiate and expand more investors. The team has many high-quality star resources, bringing more endorsements to the project brand. It is hoped that various media platforms will unite for integrated marketing. [2018/4/28]

In the face of the strong DeFi, the exchanges quickly responded, no longer blindly passively listing coins, and started their own counterattack:

Huobi Global announced that it will launch a series of activities in the near future, "locking HT to participate in DeFi liquidity mining", and said that it has prepared 50 million USDT equivalent blockchain assets for DeFi liquidity mining, which greatly simplifies Ordinary investors participate in the operation process of DeFi mining, which reduces the cost of participation;

OKEx will develop DeFi projects such as DEx, lending, and derivatives on OKChain, and strengthen cooperation with its existing DeFi star projects in business sectors such as listing, mining pools, and Yubibao.

Obviously, with the intervention of centralized exchanges, the DeFi tide will rapidly spread from the games of big players and scientists. Originally, due to problems such as cognition and information asymmetry, those who do not know how to operate Unisawp and Balancer, and do not know how to mine Novice users, most of them will soon become very proficient. the

Scattered flowers come into my eyes, and my heart is burning with anxiety. This is a portrayal of most DeFi participants.

"Which one should be dug? How to operate it? How long can it be dug?" is also the question they are most concerned about. What is certain is that the current state is clearly unhealthy, which is crazy. Including V God has bombarded this status quo more than once: "DeFi income farming is unsustainable just like the central bank printing money crazily to save the economy. So far, the only strategy I have seen to generate long-term fees is some kind of weird Financial attacks, grabbing liquidity and stealing network effects from swaps, I am pessimistic about this strategy." 

Jiang Zhuoer said: “DeFi’s liquidity mining is a typical capital market. According to my modeling, and multiple signs, multiple counter-points indicate that it has entered the end of the crash, and the highest point is likely to have passed. The longest lifespan before collapse is no more than 20 days."

Dovey Wan said: "I feel that farming can take a break for a while, just to sort out the next wave of new gameplay and continue."

"There are obvious hidden dangers of the subprime mortgage crisis now. Whether the popularity of DeFi can continue depends on whether excellent products can appear in the market. This model of infinite matryoshka will undoubtedly accelerate the collapse of DeFi. DeFi in the future will not die. Even if there is a black swan, this industry will still exist, but it will return to rationality and return to the state of 2019.” Chen Mo said, “This wave of market is undoubtedly a bull market, but how long it can last, I believe everyone’s judgment is different. At present, there have been a lot of calls from foreign communities for the emergence of risk signals, but the mainland has just begun, and the power of the Chinese people cannot be underestimated, but the risks still exist. Those who have already made money should consider leaving the market, and those who have not made money should hurry up.”

There are a thousand Hamlets for a thousand readers. Everything is possible before the market development is verified. But most of the "farmers" in DeFi are used to "safety if nothing happens", and they still have to dig and cherish.

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