Analyze the roadmap of 25 major DeFi protocols, and foresee the seven major trends of DeFi in the future

By @DefiIgnas

Source: Twitter

The past year has been brutal for DeFi.

DeFi tokens have been falling in price against ETH since at least October 2020.

The DeFi Pulse index, which tracks major DeFi tokens, has lost 69% against ETH in the past year alone.

why?

• Inflation design of DeFi token economics.

• Lack of redistribution of protocol revenue to token holders.

• Attractive ETH staking APY.

For example, the only use case for Uniswap’s UNI is voting, with 0% of the generated fees distributed to UNI holders.

With that in mind, this article analyzes the roadmaps of 25 major DeFi protocols to see what's coming next.

Lots of things are coming: the protocol’s own stablecoin, new token economics, decentralization initiatives, Maker’s The End Game initiative, and more.

You can check out the full project list, roadmap details, timeline and sources: https://bit.ly/3J49Mwg

7 major trends in the future of DeFi

So, what will DeFi usher in?

The Growth of the Protocol’s Own Stablecoins

Following the recent NEAR, Tron, and Waves blockchains launching stablecoins, DeFi protocols Aave and Curve also plan to launch their own stablecoins.

Even SHIB is creating its own stablecoin, SHI.

While there isn’t much official information about crvUSD, Aave revealed the mechanics of its GHO stablecoin.

Advantage:

• Add new revenue streams

• Brings additional use cases to the token

•Increase its demand and increase the income of liquidity providers.

Adoption of ve token economics increases

• Yearn Finance expects to launch veYFI in mid-August with a 4-year lock-in period

• Synthetix will use veSNX for inflation weighting.

• Pancakeswap will also launch vCAKE "soon" for reward weighted voting.

I wouldn't be surprised if COMP also transitions to ve tokenomics in the future as they will stop liquidity mining altogether.

Focus on progressive decentralization

As projects build PMF, financial sustainability, community, and regulatory compliance, they seek to reduce their single point of failure — centralization.

DYDX, GRT, REN, LDO and MKR are moving towards full decentralization.

Introducing a new iterative protocol

Crypto and DeFi are growing rapidly.

In order to keep up with the rapid development of the market, many protocols will comprehensively upgrade the way the protocol works.

Coming soon:

•Synthetix V3

• Compound III

• Nexus V2

• dYdX V4

• Yearn V3

• GMX X4

The future is multi-chain

This is so evident that even Compound has a multi-chain strategy for its Compound III.

in addition:

• SUSHI launches SushiXSwap DEX

• REN is partnering with the metaverse decentralized exchange protocol @catalogfi

• MakerDAO's End Game features Maker Teleport

The influence of Uniswap V3 is growing

Uniswap V3 introduced centralized liquidity, and @KyberNetwork recently launched KyberSwap Elastic with the same functionality, offering 5 fee tiers for LPs.

@osmosiszone is also building a centralized liquidity mechanism.

Extended Token Use Cases

• @chainlink announces LINK staking, ushering in LINK token model 2.0

• @PancakeSwap V2 Token Economics Limits CAKE Tokens to 750M, Increases Yield, IFO Earnings & Weighted Voting

•Maker will launch liquidity mining for MKR and even DAI holders.

also……

Even among the top DeFi projects, the transparency of team building varies widely.

YFI, SNX, and MKR have very clear roadmaps and deployment details, and have good communication, while UNI is the most closed.

Are these protocol upgrades enough to revive DeFi?