{"id":119666,"date":"2023-07-08T12:01:57","date_gmt":"2023-07-08T12:01:57","guid":{"rendered":"https:\/\/dripp.zone\/news\/a-fraction-of-its-former-highs-whats-next-for-defi-crypto-news\/"},"modified":"2023-07-08T12:01:59","modified_gmt":"2023-07-08T12:01:59","slug":"a-fraction-of-its-former-highs-whats-next-for-defi-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/a-fraction-of-its-former-highs-whats-next-for-defi-crypto-news\/","title":{"rendered":"A Fraction of Its Former Highs, What&#8217;s Next for DeFi?\n &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div style=\"position:relative;overflow:visible;font-size:1.2em;line-height:1.58\">\n<figure class=\"w-full max-w-full mt-4 overflow-hidden\"><span style=\"box-sizing:border-box;display:block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative\"><span style=\"box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;padding-top:40.755627009646304%\"\/><noscript><img alt=\"decrypting defi newsletter header\" loading=\"lazy\" decoding=\"async\" data-nimg=\"responsive\" style=\"position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain\" class=\"absolute inset-0 box-border p-0 border-0 m-auto block w-0 h-0 min-w-full max-w-full min-h-full max-h-full object-contain\" sizes=\"(min-width: 640px) 950px, 384px\" srcset=\"https:\/\/img.decrypt.co\/insecure\/rs:fit:16:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 16w, https:\/\/img.decrypt.co\/insecure\/rs:fit:32:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 32w, https:\/\/img.decrypt.co\/insecure\/rs:fit:48:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 48w, https:\/\/img.decrypt.co\/insecure\/rs:fit:64:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 64w, https:\/\/img.decrypt.co\/insecure\/rs:fit:96:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 96w, https:\/\/img.decrypt.co\/insecure\/rs:fit:128:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 128w, https:\/\/img.decrypt.co\/insecure\/rs:fit:256:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 256w, https:\/\/img.decrypt.co\/insecure\/rs:fit:384:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 384w, https:\/\/img.decrypt.co\/insecure\/rs:fit:640:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 640w, https:\/\/img.decrypt.co\/insecure\/rs:fit:768:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 768w, https:\/\/img.decrypt.co\/insecure\/rs:fit:1024:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 1024w, https:\/\/img.decrypt.co\/insecure\/rs:fit:1280:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 1280w, https:\/\/img.decrypt.co\/insecure\/rs:fit:1536:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp 1536w\" src=\"https:\/\/img.decrypt.co\/insecure\/rs:fit:1536:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp\"\/><\/noscript><\/span><figcaption class=\"m-0 text-left gg-dark:text-neutral-200 scene:font-itc-avant-garde-gothic-pro scene:text-neutral-700 scene:font-light scene:mt-1\">Decrypting DeFi is Decrypt&#8217;s DeFi email newsletter.  (art: Grant Kempster)<\/figcaption><\/figure>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">It&#8217;s been a pretty dull bear market of late. <span class=\"link\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/resources\/what-is-bitcoin-four-minute-instant-guide-explainer\" class=\"sc-adb616fe-0 ePvUAp\">Bitcoin<\/a><\/span>  has flirted with $30,000 for some time, and <span class=\"link\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/resources\/what-is-ethereum-quickly-explained-four-minute-guide\" class=\"sc-adb616fe-0 ePvUAp\">Ethereum<\/a><\/span>  has only briefly managed to get out in front of that pesky $2,000 mark.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">It feels like a lot of the same in DeFi.  Derivative changes lead different projects to temporarily swap TVL for a period;  a week later that same money flows back into the first project.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">Even Uniswap, one of the niche&#8217;s defining projects, is barely registered. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/144802\/ethereum-devs-cry-foul-on-uniswap-v4-open-source-promises\" class=\"sc-adb616fe-0 ePvUAp\">a blip after launching<\/a> its latest iteration.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">So, what&#8217;s next for decentralized finance?  The sector&#8217;s salad days are clearly over, but does that mean DeFi has no future?<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">Let&#8217;s start by first unpacking the data.  Per DeFi Llama, the niche still has roughly $45 billion sloshing around across various projects.  That&#8217;s miles off from its peak of $178 billion set back in November 2021, but it&#8217;s also a few projects lighter (<i>ahem<\/i> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/100402\/how-terra-ust-luna-imploded-crypto-crash\/\" class=\"sc-adb616fe-0 ePvUAp\">Terra<\/a>,<\/p>\n<figure class=\"w-full max-w-full mt-4 overflow-hidden\"><span style=\"box-sizing:border-box;display:block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative\"><span style=\"box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;padding-top:25.85774058577406%\"\/><img alt=\"A blue chart with a black background.\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" decoding=\"async\" data-nimg=\"responsive\" class=\"absolute inset-0 box-border p-0 border-0 m-auto block w-0 h-0 min-w-full max-w-full min-h-full max-h-full object-contain\" style=\"position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain\"\/><noscript><img alt=\"A blue chart with a black background.\" loading=\"lazy\" decoding=\"async\" data-nimg=\"responsive\" style=\"position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:contain\" class=\"absolute inset-0 box-border p-0 border-0 m-auto block w-0 h-0 min-w-full max-w-full min-h-full max-h-full object-contain\" sizes=\"(min-width: 640px) 950px, 384px\" srcset=\"https:\/\/img.decrypt.co\/insecure\/rs:fit:16:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 16w, https:\/\/img.decrypt.co\/insecure\/rs:fit:32:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 32w, https:\/\/img.decrypt.co\/insecure\/rs:fit:48:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 48w, https:\/\/img.decrypt.co\/insecure\/rs:fit:64:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 64w, https:\/\/img.decrypt.co\/insecure\/rs:fit:96:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 96w, https:\/\/img.decrypt.co\/insecure\/rs:fit:128:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 128w, https:\/\/img.decrypt.co\/insecure\/rs:fit:256:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 256w, https:\/\/img.decrypt.co\/insecure\/rs:fit:384:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 384w, https:\/\/img.decrypt.co\/insecure\/rs:fit:640:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 640w, https:\/\/img.decrypt.co\/insecure\/rs:fit:768:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 768w, https:\/\/img.decrypt.co\/insecure\/rs:fit:1024:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 1024w, https:\/\/img.decrypt.co\/insecure\/rs:fit:1280:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 1280w, https:\/\/img.decrypt.co\/insecure\/rs:fit:1536:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp 1536w\" src=\"https:\/\/img.decrypt.co\/insecure\/rs:fit:1536:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2023\/07\/defillama-tvl.png@webp\"\/><\/noscript><\/span><figcaption class=\"m-0 text-left gg-dark:text-neutral-200 scene:font-itc-avant-garde-gothic-pro scene:text-neutral-700 scene:font-light scene:mt-1\"><span style=\"font-weight:400\">All the money in DeFi today.  Image: <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defillama.com\/\" data-wpel-link=\"external\"><span style=\"font-weight:400\">DeFi Llama<\/span><\/a><span style=\"font-weight:400\">,<\/span><\/figcaption><\/figure>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">These days, this value is primarily concentrated in liquid staking.  Two of the ten largest projects are in this category: Lido Finance ($14.5 billion) and, ironically, Coinbase&#8217;s staked Ethereum ($2.27 billion).<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">Both have soared in popularity following the successful execution of Ethereum&#8217;s change to a proof-of-stake consensus network, giving rise to the popular term &#8220;real yield.&#8221;<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">Instead of shell games played among different DeFi projects (again, Terra), the yield generated by staking ETH is about as legitimate as it gets\u2014at least for crypto.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">There are real users swapping coins or flipping NFTs, and developers seemingly deploying smart contracts on the network every day.  Those who stake their ETH are performing a real service to keep those transactions secure, and are thus rewarded.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">That&#8217;s one future, then: DeFi products built atop and around the rise of the real yield meme.  In another edition of Decrypting DeFi, we unpacked a far more complex project called <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/139897\/eigen-what-how-eigenlayer-is-putting-staked-ethereum-back-work\/\" class=\"sc-adb616fe-0 ePvUAp\">Eigenlayer<\/a> that&#8217;s also riding this wave.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">There&#8217;s also chatter of various institutional players looking to build even more products to scrape another 1% or 2% off that real yield.  That&#8217;s a trend that folks should definitely keep a close eye on.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">Another future is how another kind of yield\u2014that of real-world assets\u2014is turbo-charging projects like MakerDAO, and specifically, its native stablecoin DAI.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">What was previously a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/117070\/defis-central-bank-makerdao-relaunches-1-fixed-yield-dai-holders\" class=\"sc-adb616fe-0 ePvUAp\">measly 1%<\/a>the DAI Savings Rate (DSR) has soared to just under 4% for holders who decide to deposit the dollar-pegged stablecoin into the contract.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">The reason the protocol is able to dole out such an increase is in part due to the revenue that it&#8217;s generating from various tradfi deals the community has voted on executing.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/vote.makerdao.com\/polling\/QmXedMr8#vote-breakdown\" class=\"sc-adb616fe-0 ePvUAp\">Last June<\/a>, for example, the Maker community voted to buy short-term US Treasuries and bonds from BlackRock for $500 million.  The yield generated from that and other similar deals is now being redistributed to DAI holders.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">These two futures might not be as sexy as double-digit yield farms or the food coins of yesteryear, but they&#8217;re futures nonetheless.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">As the degens used to say in the summer of 2020: It ain&#8217;t much, but its honest work.<\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><i>Decrypting DeFi is our DeFi newsletter, led by this essay.  Subscribers to our emails get to read the essay before it goes on the site.  SUBSCRIBE <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/modal\/emails\" class=\"sc-adb616fe-0 ePvUAp\">here<\/a>, <\/i><\/p>\n<div class=\"my-4 border-b border-decryptGridline\">\n<div class=\"text-left p-8 md:py-12 md:px-12 max-w-prose relative\"><span class=\"border-t-4 border-l-4 w-4 h-4 md:border-t-[6px] md:border-l-[6px] md:w-6 md:h-6 border-decryptPurple dark:border-decryptNeon gg-dark:border-cc-pink-2 absolute top-4 left-4 md:top-6 md:left-6\"\/><span class=\"border-t-4 border-l-4 w-4 h-4 md:border-t-[6px] md:border-l-[6px] md:w-6 md:h-6 border-decryptPurple dark:border-decryptNeon gg-dark:border-cc-pink-2 absolute rotate-180 bottom-4 right-4 md:bottom-6 md:right-6\"\/><\/p>\n<h3 class=\"font-akzidenz-grotesk font-bold text-xl md:text-3xl mb-6 md:text-center gg-dark:text-white\">Stay on top of crypto news, get daily updates in your inbox.<\/h3>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Decrypting DeFi is Decrypt&#8217;s DeFi email newsletter. (art: Grant Kempster) It&#8217;s been a pretty dull bear market of late. Bitcoin has flirted with $30,000 for some time, and Ethereum has only briefly managed to get out in front of that pesky $2,000 mark. It feels like a lot of the same in DeFi. Derivative changes [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":119667,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-119666","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/119666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=119666"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/119666\/revisions"}],"predecessor-version":[{"id":119668,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/119666\/revisions\/119668"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/119667"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=119666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=119666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=119666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}