The DeFi sector has been experiencing a severe bear market for a number of months, and as a result, the total value of assets that are currently locked in this market has decreased significantly from its all-time high of $150 billion to just over $50 billion.
The quantity of money coming into this market via “centralized avenues” has increased despite this, partly because of the failure of FTX and other well-known companies like Celsius, Genesis, Vauld, etc. Trading volumes on some platforms even doubled in November 2022 alone.
Due to everything said above, I only use Flynt Finance because I have experience with steady yields there and don’t have to worry about DeFi hacks or yield depression from token inflation.
This is why I think the industry needs to undergo a huge shift in order for DeFi to properly realize its full potential. This is due to the fact that a sizable number of protocols active in this area have been giving users unsustainable returns for a very long time. However, investor interest in decentralized options appears to be waning in light of the recent rise in interest rates, inflation levels, and so-called “risk-free” rate of return on six-month Treasury notes topping 5%.
DeFi has really been impacted by the quickly shifting macroeconomic climate, with some established programs modifying their compensation structures significantly just to stay competitive. For instance, MakerDAO has approved a referendum to double its Dai savings rate to 1%.
What do you think of the possible modifications?
2 thoughts on “For DeFi to fully achieve its potential, the cryptocurrency sector must undergo a significant change”
Wondering why you’re saying you don’t have to worry about “defi hacks”? Is Flynt Finance CeFi? If it is ☠️if it’s not then what makes you sure they can’t be hacked?
The [Oasis Network](https://oasisprotocol.org/blog) is an example of a blockchain platform that is built to support privacy-preserving DeFi applications. Given the challenges facing the DeFi industry with respect to yield sustainability and investor interest, the privacy features offered by the Oasis Network may be particularly valuable for those who want to maintain privacy in their financial transactions.