Huobi Ventures Weekly Insights
Insight provided by Pengfei HuangFu of Huobi Ventures
Over the past month, you may have seen the term “DeFi 2.0” appear on Twitter with the hot discussions about Olympus DAO and its forks. But what is “DeFi 2.0”? And why it is important?
Let’s start from recapping DeFi 1.0. The DeFi1.0 stage led by Uniswap shows the disruptive ability of decentralized finance, and the new financial paradigm triggered by decentralized exchange has gradually shown its power. Up to now, the Total value locked by DeFi protocols is more than $250 billion. However, DeFi has been eclipsed by the explosion of the NFT in 2021. Yield “seekers” are beginning to explore new ways to generate capital. And this forces DeFi developers to make new innovations, leading to the transformation from DeFi 1.0 to DeFi 2.0.
Generally, DeFi 2.0 is aiming to solve the existing limitations in terms of Scalability, Liquidity, Centralization, Security & Capital efficiency. First things first, let’s talk about the key issue of existing DeFi protocols — capital efficiency. A major problem of DeFi 1.0 is that assets are locked in liquidity pools but most of them remain static and unused.
We can get into details by looking at three most important DeFi tracks:
1. AMM/DEx: CFMM (constant function market maker) is the infrastructure of any blockchain ecosystem, and it helps attracts a huge amount of TVL. However, most of assets is inefficiently utilized because constant function market maker spreads the liquidity to all price range. Uniswap V3 offers concentrated liquidity but the high gas fee prevents users from frequently changing positions. The relocation to Arbitrum may display the essence of Uniswap v3. Another protocol that can free out the liquidity of AMM is Unbound finance.
2. Lending: The utilization of assets staked in Lending protocols is usually low, resulting in a low APY, which is the key factor DeFi users look at. One protocol that we can expect for is Clearpool, which provides risk adjusted return according to user’s risk appetite.
3. Aggregators: Just as what Coin98 Insight mentioned, Users receive AGtokens after depositing assets/liquidity into protocols and they have nowhere to stake the LP tokens, thus lose the extra revenue from DeFi Lego.
Huobi Ventures Latest Update
We are honored to announce that Huobi Ventures, one of the world’s largest and prestigious crypto ventures, has invested in X Protocol
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Portfolios Weekly Status
VR exihibition is live. Details
Animoca Brands will talk about the exploration of the paradigm shift in Gaming and Sports, and how the Metaverse will change audience engagement via NFTs. Details
Automata Network launches official mainnet. Details
· Biconomy raises $11.5M in public sale of native token BICO. Details
· Biconomy partners with Argoapp on the common vision of simplifying Web3 for devs & making blockchain mainstream. Details
The Clearpool Whitepaper explains the problem digital asset institutions face in DeFi lending, most prominent — over-collateralization and the risk of liquidation — while also proposing how. Details
Clover will be participating in the first parachain auctions batch, from November 11th until December 16th. Details
Connext routers. Details
Cyclos is giving away 50 more Alpha mainnet tickets to lucky winners.(experienced DeFi users encouraged we want you) Public address loudspeaker. Details
We are happy to announce that Testnet 2.0 is finally public with tons of new features and overall improvements that have been added. Details
New Beta on arbitrum is launching on Nov 4. Details
dTrade welcomes firefly protocol to the family as its parent platform. Details
Hurricane Swap trading competition in Nov 1st-8th.
· InsurAce.io is happy to announce it has listed MCDEX. Details
· InsurAce has officially launched API. API is designed to provide live, accurate data to dashboards and partner protocols, as well as providing direct integration that allow users to access InsurAce services directly. Details
AU21 Capital backing Kibo Finance. Details
OpenOcean Atlantic Version launched on Ethereum. Details
Proposal 40 has passed. Details
House of Chimera will release a research paper about Project SEED on 04/11/2021. Details
Rangers Protocol reached strategic cooperation with DeHero, 2nd NFT transaction volume on BSC. Details
ROCO Finance announced strategic partnership with HoopGames and PeraFinance. Details
Spacemesh TweedleDev 208 is ready for the community to join. Details
ZKS has completed the seventh token burn scheme on November 1st, 2021, with a total of 14,097 ZKS burnt in the last month. Details
About Huobi Ventures
Led by Huobi CFO Lily Zhang, Huobi Ventures is a wholly-owned subsidiary of Huobi Group focusing on Huobi global investment. Composed of four divisions — strategic M&A, strategic investment, asset management and global cooperation, Huobi Ventures has already launched three funds targeting typical fields: Blockchain, HECO and NFT. We aim to empower further growth of Huobi Global, and create a global community with our partners for mutual benefits.