- DeFi will surpass traditional finance ten out of ten times
- DeFi 2.0 equals making money in a fun and exciting way
- A DeFi 2.0 community is more important than any other indicator of wealth and status
In the words of a once “wise” gentleman, let’s make DeFi fun again! Meet DeFi 2.0, the more humorous, laid-back and easy-going, yet always money-hungry, alternative to DeFi 1.0.
DeFi 1.0 made its mark on the crypto space, racking up billions of dollars in total value locked (TVL). DeFi 1.0 was all about Ethereum, Uniswap, and yield farming, with a staggering TVL of 96% dominance on ETH alone at the start of 2021. Now the tables have turned, with Ethereum having a TVL of 63%, as new protocols take their demand share of the pie, and it’s well deserved. BRAVO!
But crypto is a cyclical industry, and degens’ attention span lasts until there’s another fun and engaging way of making money while not enduring a mind-melting process. DeFi 2.0 is making crypto more engaging and exciting by gamifying the entire financial experience. We said it, we own it, and now let’s dive more into it! But first, a word from the DeFi 2.0 wise:
The DeFi 2020 explosion that made degens happier
Welcome to the DeFi 2.0 show, where the aim is to have fun (read: play games) while making money. Banks never thought of making saving fun, allowing users to save, or interacting with financial products while in a familiar environment, such as a game setting. DeFi 2.0 does.
DeFi Kingdoms (JEWEL) is the perfect example of how DeFi utilizes gamification to attract new users, and for users to interact with protocols. The game reached a TVL of $1 billion, a milestone not every DeFi protocol can brag about.
TVL is a sign of a platform’s popularity, and several other platforms make things even more enticing. Tomb Finance (TSHARE) redefines how stablecoin pegging works, detaching from Bitcoin’s volatility. As discussed in the Crypto Banter show, TSHARE’s owners can get an annual percentage yield (APY) of over 31,000%. While that is similar to DeFi 1.0, it adds an element of risk vs. high reward to the entire process.
However, the consensus in the industry is that making money should be a social activity – but digitized. Communities are the core of the DeFi 2.0 ethos. New protocols like OlympusDAO even out the risk and address the shortcomings of DeFi 1.0 by repurposing the funds to earn revenue and provide liquidity. This creates a stronger core community, because every bond funding process rewards every participant. In the end, community participation leads to rewards.
Why will DeFi 2.0 explode? Route 2 Fl says it is because the money comes second to joining a community, having fun, and making friends. Playing DeFi has its perks, and people join the community and depart with profits. That’s Magic Internet Money (MEM) in a nutshell, after all.
Another example is WonderLand (TIME), an OlympusDAO fork that re-designed stablecoins by using a non-pegged stablecoin on the Avalanche network, and is backed by other assets. Similarly, FantOHM (FHM) – not to be confused with Fantom (FTM) – is a reserve and revenue protocol that addresses inflation risks, which are so common in DeFi 1.0. The scope and end goal of the protocol is the same; investors take decision risks and are rewarded for their joint participation.
Building wealth becomes a team game. Everyone contributes. Platforms like DeFi Kingdoms always add a new element to their games. Don-key Finance is like a cheat sheet for yield farming strategies, creating more excitement for DeFi by allowing users to copy-trade professional yield farmers and piggy-back their success! Therefore, communities, games, and financial enjoyment become more valued for degens.
DeFi 2.0 is an explosion that’s waiting to happen. We all saw what boring finance does. It makes guys on Wall Street seem like they own the place. DeFi 1.0 was, let’s say interesting, but it was not what we were all looking for. DeFi 2.0 will change all through a mix of community enticing interactions. We want to check our preferred platforms, and see our daily harvest because it adds a sense of excitement.
Banks are every degen’s kryptonite. While they have minimum risk, we hate them. Instead, we love a community where we belong, where everyone has the same equal chances of making money. The excitement and the closed community are what bring all of us back.
We form habits which will drive DeFi 2.0 to new highs as it becomes part of a community-driven degen-money-making culture. One we’re already part of but it’s not maximizing to its fullest potential. That’s a mouthful, but it’s very accurate. Stick around and you’ll see people saying, “I MADE MORE JEWELS WHILE ROAMING THE DEFI KINGDOM”!
Effectively DeFi 2.0 is changing how money is perceived. It takes away the stigma of seriousness from the concept of money. You can’t name a single bank that has a theme, or where investors or users use tokens as units of exchange. And investors being allowed to be part of the banking community? Unheard of! You’ve never seen it and that’s what charms every DeFi investor; it’s how money is normalized as a simple asset. It’s fun, no longer that serious, yet completely compelling.
Roberto Talamas, a research analyst at Messari Crypto, agrees with us as he identifies the top-performing sectors in the last seven days, one month, and three months. You guessed it, DeFi 2.0!
Protocols and platforms that gamify the entire financial experience will have the upper hand going into mid-2022. We already see platforms and protocols breaking out even when Bitcoin is not moving a muscle. Look for platforms that have a gamified theme and provide investors with a sense of community, excitement, and risk. That’s where the money will start flowing in, especially when they are on new protocols.
Trading Tombs, Magic Money, or DeFi Heroes are key elements to the booming DeFi 2.0 era. Search out themed financial opportunities, but at the same time, assess your risks. Not every DeFi 2.0 platform will become the next OlympusDAO, so make sure you do your own research before aping in!