From DeFi 1.0 to 3.0: Innovative Protocols Leading the Way

Too Long; Didn’t Read

The first generation of DeFi primitives offered a slew of exciting ways for investors to have more direct control over their investments. But, these earlier UIs tended to be convoluted, and the governance practices were disorganized.

DeFi 2.0 built off their predecessors, creating intuitive apps, straightforward governance, and increasing user engagement with this new financial system. Crucial DeFi 2.0 protocols like Convex and Frax built on Curve Finance and other 1.0 projects to provide new functionalities and solid infrastructure for future projects.

This brought in a fresh wave of innovation, with new protocols building robust and sustainable ecosystems that can lead the way into DeFi 3.0.

Examples:
– dAMM is the first institutional capital markets platform emphasizing all tokens. The platform allows institutional players to invest without high fees and a lengthy onboarding process.
– Sturdy Finance, where 2.0 assets have been integrated to provide borrowers high leverage and lenders greater yield than other platforms because they get a portion of farming rewards.
– Aevo is a high-performance order-book-based DEX with all the features a pro-option trader would seek, including deep liquidity and cross-chain onboarding.

These protocols exemplify the steady evolution of the DeFi ecosystem– each furthered the use cases of preexisting protocols and assets while also adding new and lucrative user opportunities.