The development of DeFi

At present, DeFi has become a huge market with a market value of 60 billion US dollars. Not only its market size is large, but also its development speed is very rapid. According to data from OKLink, as one of the application scenarios of DeFi, the total circulation of stablecoins has increased by 12.3 times in three years from April 2020 to April 2023. In addition, the total loan amount of lending agreements like Aave, the top application of DeFi, has grown from 100 million US dollars in 2020 to more than 5.72 billion US dollars now.

From the 1.0 era to the 3.0 era, DeFi has experienced technological innovation and market enthusiasm, and now it has come to application innovation and exploration.

DeFi 1.0 refers to the outbreak of decentralized trading platforms whose infrastructure is the automatic market maker (AMM) mechanism, and the "farmers" who obtain more profits by using mining (Farming) have entered DeFi" farming" era.

DeFi 2.0 is an innovation based on the new protocol created by the first generation of DeFi Lego. Among them, the important feature of liquidity mining (PoL) possessed by the DeFi protocol is one of the keys to the new logic of the entire DeFi 2.0. The innovations of DeFi 1.0 and 2.0 are carried out at the infrastructure and protocol level of DeFi, while DeFi 3.0 focuses more on innovation at the application level.