According to CM, transaction fees on the Ethereum chain have risen rapidly recently, averaging about $0.40 per transaction, which is the highest in two years.
The “driving force” behind the soaring ETH fees is DeFi. According to DeFi’s dedicated website Defimarketcap, the total market cap of DeFi project tokens reached 9.9 billion on July 21.
DeFi covers a wide range of applications, including decentralized mortgage lending, decentralized exchange (DEX), predictors, stablecoins, etc.
According to the rankings provided by the Defimarketcap website, the projects that have long occupied the top six in the valuation list is: stablecoin Dai, mortgage lending COMP, Maker DAO, trading platform SNX, Lend, trading platform KNC and so on.
Since the first half of 2020, the price of tokens for many DeFi projects has been pushed up, and the skyrocketing currencies are cropping up. Among them, COMP rose hundreds of times, Lend has increased 40 times in recent half a year, SNX has gained 10 times in the last six months. DeFi’s popularity has sent many otherwise obscure projects to their peak overnight, and the value of the project’s market has reached new highs.
Why is this DeFi feast so binge-going?
The external cause
I. Advances in blockchain underlying technology provide the technical foundation for DeFi. In the past 5 years, blockchain technology has been iterated rapidly, and the performance of all types of public chains has improved dramatically. From the initial payment purposes to the emergence of smart contracts, from high expansion to 10,000 TPS, from slicing technology to cross-chain transmission, blockchain technology has come up with new support for the development of the industry.
II.It is an inevitable trend for blockchain technology to be put into business. In recent years, the industry situation of hot inside and cold outside in blockchain has not been changed, and as blockchain heats up, there are more and more voices questioning the inability of blockchain technology to land. The rise of DeFi can be described as a technology experiment for blockchain from inside to outside.
III. DeFi complements the traditional financial industry. DeFi is a decentralized financial concept that is opposed to traditional finance, but it is more complementary than antagonistic. Traditional finance such as bank lending, private investment, stock trading, has some shortcomings, for example, a high threshold, a strict review mechanism, a low operating efficiency and opaque information, and DeFi’s transparent mechanism, no threshold, high efficiency and other advantages are just enough to fill the blank users that cannot be covered by traditional finance.
The internal reason
IV. Since the blockchain burst into popularity, there have been new industry hot spots every year. One of this year’s hot spots is IPFS, and the other is DeFi. The current Filecoin main network was delayed from going online and missed half a year. Now only DeFi has become a hot spot.
V. Product innovation to solve the industry pain point. DeFi’s growth can not be separated from a number of innovative products, good products can retain more users. Such as liquidity mining, decentralized asset trading, innovative stable coins and so on. The new deal-making mechanism brought by Uniswap, the popular decentralized exchange, has dramatically increased the depth of trading in digital assets. Another example is AMPL’s innovative stable coin with flexible supply and demand.
DeFi is seeing a new growth point, will AOS become the next dark horse?
DeFi’s market cap is hitting the $10 billion mark, and from the current heat, going over $10 billion is just the starting point for DeFi, its market cap will continue to rise. At present, DeFi has a wide range of industries, the outline of its industrial map is emerging, it is moving from product innovation to product upgrades.
In the face of delays in the current development of Ethereum 2.0, privacy protection has become a current DeFi vacancy. Many DeFi developers are looking for new privacy solutions, and AOS public chain, the leader of the public chain of privacy, has become the first choice for developers.
Why DeFi privacy protection has become an urgent need? Let’s look at a set of data: In February-July 2020, there were seven major thefts of DeFi-type applications, with a cumulative total of $35 million stolen, of which dForce Eco-theft accounted for $25 million. The overnight theft has attracted more hackers, and DeFi security is becoming increasingly serious.
Privacy protection has become an urgent need for DeFi, who can provide DeFi privacy solutions, who is the next dark horse.
AOS, the best privacy-class public chain, provides new answers to DeFi security questions.
As mentioned above, DeFi is open and transparent, so whether it contradicts privacy protections? The answer is no. Openness is an inherent feature of blockchain, such as asset disclosure, transaction disclosure, address disclosure, etc. Privacy is divided into two directions: The first is to focus on the security level of privacy protection, and the second is to provide special protection for data privacy needs.
AOS is the best platform for developing privacy DeFi, both to meet security and to provide dedicated privacy requirements.
The AOS public chain Account model integrates smart contract and zero-knowledge proof programming to support large-scale DeFi application development, privacy DeFi development, data security tool development, cross-chain application, etc.
Zero-knowledge proof and homomorphic encryption method is the key to the security of AOS public chain privacy, that is, it can protect the privacy of the application, but also guarantee the security. AOS is also the fastest privacy smart contract platform with 10,000 TPS to support large-scale applications and operations.
AOS has launched the world’s most convenient asset issuance platform, which can issue stable coins for mortgage lending class DeFi to complement the integrity of the lending ecosystem.
AOS’s ultra-high public chain performance, off-the-shelf privacy features, academic and practical security, and convenient distribution tools are new choices for DeFi applications from every angle.
DeFi feast is still revelry, AOS big probability will become next dark horse of DeFi ecological.