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Topic: The Future of DeFi: What's Next for Decentralized Finance? (Read 148 times)

legendary
Activity: 3080
Merit: 1178
Leading Crypto Sports Betting & Casino Platform
Unless brokers actually tokenize the stocks themselves(which won't happen for a good while), yea, rights definitely won't be transferred and honored. It should still have demand though, as a lot of people including me care very little about voting rights and such, what mostly matters is exposure to the asset.
Tokens that are made purely made for speculative trading that are representing the price of an rwa (aka synthetics) have been around already, and fitting them to comply with the current laws shouldn't be a big issue and i think we might see them coming back soon in big cexes as well.

But i don't believe that they they have a fraction of a demand from actual RWAs, as they are just mirroring the price. They will have demand, but when people are talking about current centralized RWA markets and hinting it's a big market, imho that's quite misleading.
mk4
legendary
Activity: 2870
Merit: 3873
📟 t3rminal.xyz
And more than just an element, and more centralized then Tether for example. Because with the current rules for actual RWAs and not synthetics limit the transfer the ownership of RWA, so that you can't transfer rights purely by sending a token. Not in a way it would be legally binding in anywhere. Permissionless transaction of such asset combined with actual ownership would contradict both AML laws and customer protection laws. Hence the token would only be a symbolic unnecessary gesture, that wouldn't be needed top of actual legal contract.

Unless brokers actually tokenize the stocks themselves(which won't happen for a good while), yea, rights definitely won't be transferred and honored. It should still have demand though, as a lot of people including me care very little about voting rights and such, what mostly matters is exposure to the asset.
legendary
Activity: 3080
Merit: 1178
Leading Crypto Sports Betting & Casino Platform
That would need regulatory compliant DeFi and that's hard to pull off so that the whole decentralization element would serve any purpose in it. As many aspects of it will be centralized anyway. I mean there are ways, but it needs to be flawless system. And cutting edge new tech rarely is flawless without years of testing.

Then there's the issue of learning curve. It needs to be easy to use, fast, reliable and make actual sense so it wouldn't just be easier to replace with CEX. I know there already are some projects that are pretending to be RWA's but so far all they offer are synthetics and tokens that are reflecting value of some real assets. They aren't really anything new.
I mean, if we're talking about tokenizing RWA, it's impossible for it to not have a centralized element; especially when we're talking about the likes of t-bills and such. An entity needs to be handling all those "RWAs" in the back end.
And more than just an element, and more centralized then Tether for example. Because with the current rules for actual RWAs and not synthetics limits transfering the ownership of RWA, so that you can't transfer rights purely by sending a token. Not in a way it would be legally binding in anywhere. Permissionless transaction of such asset combined with actual ownership would contradict both AML laws and customer protection laws. Hence the token would only be a symbolic unnecessary gesture, that wouldn't be needed top of actual legal contract.

So, problem remains... What part exactly is blockchain serving in this? To get around this, you need at least a build in KYC, and ability to reverse transfers. It can be done, but not in a way people have been trying to do it. And not in a way people think have grown to understand cryptos, and most likely not with any existing blockchain.
legendary
Activity: 1162
Merit: 2025
Leading Crypto Sports Betting & Casino Platform
The future of Defi pretty much depends on much the Defi projects and protocols will react to aggressive and antagonistic regulations in the most important markets for Cryptocurrencies, in my opinion. It would seem to me that Definis not as decentralized as it seems to be at first glance,
If the United States and the European Union see Defi as a tool being used and abused by criminals to launder money or accept to liquidy, then it is going to become a problem for people to easily access to them.
I would not even be surprised if suddenly it could be required to pass through KYC procedures for anyone to swap in Uniswap or become a liquidity provider...
newbie
Activity: 4
Merit: 0
Hey, you’ve got some solid points.

Yeah, regulation is definitely looming over DeFi. It's been a bit of a Wild West, and sure, some folks are using it to dodge taxes. But with the EU and others looking to bring in rules, things might change soon. The decentralized angle makes it tough, but not impossible for regulators.

I agree, DeFi might have to lean towards CeFi to stay compliant. A bit more centralization could make things safer and bring in more mainstream users who are put off by the current chaos.

You’re right, borrowing and lending are basics, but DeFi has some cool innovations like AMMs and yield farming. These aren’t things you see in traditional finance, and the transparency from smart contracts is a game-changer.

I see DeFi evolving into a hybrid model—balancing regulation and decentralization. It’s gonna be tricky, but I think it’s possible.

What do you think?
mk4
legendary
Activity: 2870
Merit: 3873
📟 t3rminal.xyz
If DeFi offers much opportunities and superior benefits vs mainstream traditional finance platforms in well developed countries, people will definitely opt for DeFi. We just ha e to improve security so that even the big players can come play too.
DeFi by default will be more accessible by default simply because DeFi are just web protocols where you just connect your wallet.


That would need regulatory compliant DeFi and that's hard to pull off so that the whole decentralization element would serve any purpose in it. As many aspects of it will be centralized anyway. I mean there are ways, but it needs to be flawless system. And cutting edge new tech rarely is flawless without years of testing.

Then there's the issue of learning curve. It needs to be easy to use, fast, reliable and make actual sense so it wouldn't just be easier to replace with CEX. I know there already are some projects that are pretending to be RWA's but so far all they offer are synthetics and tokens that are reflecting value of some real assets. They aren't really anything new.
I mean, if we're talking about tokenizing RWA, it's impossible for it to not have a centralized element; especially when we're talking about the likes of t-bills and such. An entity needs to be handling all those "RWAs" in the back end.
legendary
Activity: 3276
Merit: 1029
Leading Crypto Sports Betting & Casino Platform
future defi will be full of liquid restaking protocols I think  Grin

the meta right now is all about staking so some people give solution to stake our money in more than just one platform thus getting boosted yield, other than that I find DePin to be interesting, there probably gonna be so many projects that revolves around giving decentralized infrastructure for computing powers.

Any new projects or protocols you’re excited about?
Probably just Eigenlayer which has done TGE anyway and puffer finance, could be giving me disappointing results not worth for the locking period though honestly, so many projects have been underperforming.

How do you see DeFi impacting traditional finance long-term?
it will disrupt, but the effect long term probably just to become an alternative.

legendary
Activity: 3080
Merit: 1178
Leading Crypto Sports Betting & Casino Platform
    What trends or innovations do you think will shape DeFi in the near future?
Currently, it looks like RWA — crypto-nized real-world assets and real-world yield is the subcategory that's likely to actually gain real traction.
That would need regulatory compliant DeFi and that's hard to pull off so that the whole decentralization element would serve any purpose in it. As many aspects of it will be centralized anyway. I mean there are ways, but it needs to be flawless system. And cutting edge new tech rarely is flawless without years of testing.

Then there's the issue of learning curve. It needs to be easy to use, fast, reliable and make actual sense so it wouldn't just be easier to replace with CEX. I know there already are some projects that are pretending to be RWA's but so far all they offer are synthetics and tokens that are reflecting value of some real assets. They aren't really anything new.
hero member
Activity: 2212
Merit: 805
Top Crypto Casino
It'll take a while, but people in developing countries with shitty local traditional finance platforms are the ones that are far more likely to use DeFi.

If DeFi offers much opportunities and superior benefits vs mainstream traditional finance platforms in well developed countries, people will definitely opt for DeFi. We just ha e to improve security so that even the big players can come play too.

~Snipped

As for technology, It’s still just the same borrowing/lending but in different form or brand but the mechanism is still the same in general.

The technology might be the same but it can be used to create much innovative products. One of the problems we have now is that when one project provides a creative solution to a problem or provide an innovative solution, at lease 100 to 200 copycats will follow suit trying to be the next big player in the same category boosting additional features not available in the status quo. Mehh.
mk4
legendary
Activity: 2870
Merit: 3873
📟 t3rminal.xyz
I believe DeFi will forced to move to CeFi once regulators starts pressuring this crypto markets since some country in EU is now starting to create a framework that will deal to regulate DeFi.

Some will end up being a totally-centralized but non-custodial service, and some will simply go offshore while being totally anonymous so they can continue to operate actual DeFi products. A lot of DeFi teams have been doing the latter for a good while now; they just need to take care of their opsec extra carefully.
hero member
Activity: 2954
Merit: 796

I’m curious to hear your thoughts on where DeFi is heading next:

    What trends or innovations do you think will shape DeFi in the near future?
    Any new projects or protocols you’re excited about?
    How do you see DeFi impacting traditional finance long-term?

Let’s get the conversation rolling! Can’t wait to hear your insights!

Being regulated?

Current DeFi is being used by high profile investors to hide their wealth from taxes especially that they are earning huge passive income through staking that is still untaxed since there’s still no regulation on DeFi due to its decentralized feature.

I believe DeFi will forced to move to CeFi once regulators starts pressuring this crypto markets since some country in EU is now starting to create a framework that will deal to regulate DeFi.

As for technology, It’s still just the same borrowing/lending but in different form or brand but the mechanism is still the same in general.
mk4
legendary
Activity: 2870
Merit: 3873
📟 t3rminal.xyz
    What trends or innovations do you think will shape DeFi in the near future?
Currently, it looks like RWA — crypto-nized real-world assets and real-world yield is the subcategory that's likely to actually gain real traction.


    Any new projects or protocols you’re excited about?
Not a fan of shilling projects.  Grin


    How do you see DeFi impacting traditional finance long-term?
It'll take a while, but people in developing countries with shitty local traditional finance platforms are the ones that are far more likely to use DeFi.
newbie
Activity: 4
Merit: 0
Hey everyone,

DeFi has been a game-changer in the crypto world, right? From DEXs and lending platforms to yield farming and stablecoins, it’s reshaping finance as we know it.

I’m curious to hear your thoughts on where DeFi is heading next:

    What trends or innovations do you think will shape DeFi in the near future?
    Any new projects or protocols you’re excited about?
    How do you see DeFi impacting traditional finance long-term?

Let’s get the conversation rolling! Can’t wait to hear your insights!
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