Since June this year, there has been an explosive growth of tokens in the DeFi industry, and some new automated market makers, (AMM), have begun to appear in the market. We can see that ERC-20 tokens have more exciting use cases than the existing token framework.
For example, several holders of blockchain game Axie Infinity tokens “split” Axies (NFT tokens into ERC-20 tokens and sold them through the Niftex trading platform, resulting in rising prices of Axies tokens, giving Axie more liquidity.
I think the interaction between NFT and DeFi will be one of the core functions in the DeFi domain:
Valuable NFT token owners split their ownership and create a pool of liquid funds.
Users can purchase “fragments” of NFT tokens from the liquidity pool.
Fragment owners can vote on how NFT tokens are used and sold.
Eventually, this will create an unprecedented type of tokens: building community-owned assets that facilitate deeper collaboration among multiple members.
What will the next killer application of DeFi look like after mobility mining?
What will the next generation of exchanges look like?
If you have ever used an aggregation trading platform like Instadapp, Zerion, or 1inch, you may feel overwhelmed on your first visit and can easily get paralyzed by decision making.
But DEX aggregation services are rapidly becoming popular, as if they have a “mysterious seasoning” that can obtain and aggregate liquidity from multiple sources at once, but can this aggregation last forever?
What will the next killer application of DeFi look like after mobility mining? The picture above thanks to Richard Chen for providing from Dune Dashboard.
Now, we seem to have encountered a strange “bottleneck”: there are too many opportunities and too many projects to list every token, just like the problem faced by many centralised exchanges today. In addition, if your trading platform focuses on developers, it can improve the effectiveness of the network, but the problem is that many developers are reluctant to use such platforms because they are usually busy building their own trading platforms.
Instadapp and Zapper are two good examples:
Instadapp has a developer smart account that makes it easy to interact with smart contracts, and developers don’t even need to know about contract stability.
Zapper can easily combine multiple intelligent contract interactions.
Therefore, for aggregation service platform brands, perhaps the most important thing is to study and plan opportunities. Five years from now, the aggregation services platform should look more like tokens like Zora and Foundation, and new tokens can be put on the shelves when the agreement is used, and as the project / community continues to explore token use cases, how to use the protocol will become a new “specification” rather than a custom smart contract. Just as ERC-20 tokens and ERC-721 tokens win the favor of users in the market, only the most commonly used protocol tokens are “eligible” to be put on the aggregation service platform.
To put it simply, the role of the aggregation service platform in the DeFi industry may eventually be similar to that of search engines, where users can use it to explore the best matching investment opportunities, while the platform can also recommend new trading opportunities to users. Cryptocurrency projects located at the lower level of the aggregation service platform will become well-known brands, and they need to constantly strive for more attention and try to attract users to use their trading products and services.
Here I recommend a good article, “aggregation trend: who will be the first” aggregator “of DeFi ecology? “.
What will the next “encrypted cat” look like?
, CryptoKitties (encrypted Cats (December 2017) was all the rage, and everyone was talking about how to make money from digital cats, which attracted a lot of attention in the industry. Three years later, it may take more effort to get similar attention in the encryption industry, especially during novel coronavirus’s quarantine.
Morgan House, a partner in venture capital fund Collaborative Fund and a financial columnist for the Wall Street Journal, recently published an article entitled “A lot of things happen in an instant.” (Lots of Things Happening at Once), is perfect for the current cryptocurrency field. Due to the rapid development of liquidity mining and innovation, dozens of projects have emerged in the DeFi market, and no one cares when the next market platform will appear. And no one cares when the next NFT collection will be unveiled.
Users just want to make money in the most interesting way.
This means that if the “next killer app” appears in the DeFi market, there must be a compelling reason to convince users and attract their attention, while at the same time properly arousing their curiosity and hinting at profiting from it.
Recently, I asked myself and others an interesting question: if there was a new smart contract blockchain project based on Ethernet Fong, and you were the CEO of the project, what would you do? In fact, the product you want to build will compete not only with ethernet, but also with many other applications, such as Robinhood. In addition to trading as fast as Robinhood and transaction costs as low as Robinhood, you need to think about how to make your product more attractive.
Not only that, you need to prove that smart contracts and cryptocurrencies are better than stocks and securities and participate in traditional financial markets, while studying an effective way for people to share their “making money in the process of participation”. Most importantly, you need to make outsiders curious and eager to know more.
So if I were the founder of an “ethersquare killer” app, I would spend more time thinking about how to get my project more attention than how to create a DEX, with the best user experience, and I wouldn’t create a so-called “decentralized social network” (sorry EOS), won’t spend 30 million dollars on a domain name (sorry Voice.com).
Doesn’t it sound like “Zora/Foundation” that what you create needs to be fascinating and prove that blockchains can be effectively extended, smoothly started, and seamlessly docked with legal tender?
I firmly believe that there will be something special in the encryption market in 2020. This “thing” can change everything and even divert attention from Ethernet Fang. The protocol created by the winner attracts more and more developers to build products on it. The narrative will become “We have introduced the mainstream into the cryptocurrency field”, rather than “we are bringing the mainstream into the cryptocurrency field.”