Everything to Know about DeFi 2.0

TLDR;

  • What is even DeFi 2.0? Then what is DeFi 1.0?
  • The problem and solution
  • Avalanche Network, the future of DeFi?
  • DAOventures Avalanche Index Funds

WHAT IS DEFI 2.0?

  • Scalability — The gas fees in DeFi 1.0 systems are high; hence, costly to use, resulting in a bad user experience.
  • Liquidity — Liquidity is the ability to exchange between currencies easily.
  • Centralization of Authority — So far, the only central authority DeFi has avoided is government. The platforms are still governed by centralized teams that decide on features, policies, community leadership, etc.
  • Security and Oracle Attacks — DeFi’s heavy reliance on blockchain oracles can be a strength and a weakness. Not integrating with reliable oracles opens some DeFi protocols to attack. In the advent of an attack, the platform will have a hard time compensating losses.

HOW DEFI 2.0 SOLVES THE ECOSYSTEM’S PROBLEMS

  • Scalability — DeFi 2.0 promises to reduce gas fees. With a reduction in gas fees, it becomes easier for users to maximize the benefits of DeFi. As a result, the development of an alternative infrastructure to Ethereum, Avalanche, is justified.
  • Liquidity — DeFi 2.0 aims to solve the problem of liquidity by helping users earn yields. As of now, the total value of the DeFi ecosystem is at $235 billion. With more projects creating more value, the sector is bound to onboard more users and capital.
  • Centralization of Authority — Creating Decentralized Autonomous Organizations (DAO) for DeFi platforms solves the centralization problem. When DAOs begin to function fully, everyone has a voting right on decisions across the platform.
  • Security and Oracle Attacks — Security remains a major issue for DeFi 1.0. However, with the fully decentralized approach of DeFi 2.0, it becomes near impossible to compromise any part of the financial infrastructures, from the dApps to the blockchain oracles.

THE FUTURE OF DEFI?

FOLLOWING THE HYPE OF DEFI 2.0, AVALANCHE NETWORK

HOW TO GET THE MOST PROFIT ON AVALANCHE

RECOMMENDATIONS TO DAOVENTURES AVALANCHE INDEX FUNDS

About DAOventures

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DeFi ETF Index Fund, basket of auto-compounding LPs

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DeFi ETF Index Fund, basket of auto-compounding LPs

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