Investment

DeFi in 2021: The Biggest Trends to Watch Out For

In-house Crypto Exchange DeFi Services

With the DeFi market continuing to grow at an unstoppable rate, it’s only natural that centralized crypto exchanges are exploring ways to tap into this latest crypto phenomena.

Bitrue and OKEx were among the first to announce new hybrid services that cater to the DeFi and CeFi markets.

OKEx has already rolled out a new DeFi lending marketplace that’s integrated with Compound (COMP), while Bitrue is planning to make it’s existing loan service completely transparent, and roll out a new Bitrue Finance Token which customers can stake in lending liquidity pools to earn interest.

Binance has also thrown itself into the DeFi market with the debut of its new Launchpool platform - a yield farming service where customers can earn tokens from new projects by staking BNB, BUSD, or ARPA tokens.

Not only that, but the leading crypto exchange has also released the mainnet of its new ‘Smart Chain’ blockchain. This Ethereum-compatible framework allows solidity developers to build their own DeFi projects on top of the new network. It’s touted to offer faster transaction times than the Ethereum network, as well as significantly lower fees.

Going into 2021, we are almost certainly going to see more crypto exchanges offer similar DeFi+CeFi-focused services. 


New Financial Products Pegged to DeFi Pools and Tokens

FTX is renowned for pioneering new crypto financial products.

On August 24, the crypto derivatives exchange launched the first ever UNISWAP-PERP contract; An index future formed as the weighted average of the top 100 liquidity pools on the non-custodial exchange, Uniswap.

With this contract, FTX users can get exposure to perpetual, quarterly, and leveraged DeFi tokens without having to pay the associated high Ethereum gas fees.


Chances are good that we will see more DeFi-based derivative financial products emerge as the market continues to grow.

Initial DeFi Offerings

Love them or hate, token offerings have become an integral part of the crypto ecosystem, and whenever a new market or trend emerges you can bet your bottom dollar that a new type of offering will follow it.

At first, we had the Initial Coin Offering, then the Security Token Offering, followed by the Initial Exchange Offering, the Initial Dex Offering, and now we have the Initial DeFi offering.

Initial DeFi offerings follow almost exactly the same format as all their predecessors, except instead of offering the main native token for sale, they offer governance-type tokens for sale. These governance tokens give holders certain decision-making powers over the parameters of the underlying decentralized finance protocol.

Examples of Initial DeFi Offerings that have already taken place include, UMA Protocol (UMA), DXdao (DXD), Compound (COMP), and Balancer (BAL).


About the Speaker

Ex-Chief Editor Bitcoinist, Technical Analyst, and co-founder of Crypto Rebel.

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