Replacing the CEX "DeFi Revolution" is just a short shot?

To a certain extent, 2020 has become the "first year of DeFi" in the true sense. The entire DeFi ecosystem is advancing by leaps and bounds. On August 30, Uniswap once again reached a new milestone-the 24-hour transaction volume was higher than Coinbase for the first time in history. , Uniswap's 24-hour trading volume exceeded 426 million U.S. dollars, while Coinbase Pro's 24-hour trading volume during the same period was 348 million U.S. dollars.

And the current trading volume of Uniswap is basically maintained at around 400 million US dollars, becoming the benchmark of AMM DEX. This is undoubtedly extremely exciting for believers who believe in DeFi and have been paying attention to the development of DeFi. It once seemed unshakable centralization. Trading platforms seem to be gradually falling behind in this vigorous DeFi wave, and some people even exclaimed that "DEX will replace it" seems to be in sight.

So, instead of DEX, is the "DeFi revolution" really only a short shot?

01 Muffled trading platforms

In fact, the trading platforms that seem to have the risk of falling behind generally have a layout in the DeFi field, but the iteration speed of the rookies in the wave is almost dazzling, so it seems to be "slow to respond."

However, in the opinion of OKex CEO Jay, the so-called "slow response" is also very one-sided, because "in fact, listing is only a very small part of the development and integration of CEX and DEX." The trading platform is more dedicated to ecological cooperation and layout.

As early as December 2019, OKEx reached an in-depth cooperation with MakerDAO and became the world's first trading platform that integrates Dai deposit interest rates. Now the currency earning function of the financial business sector can also help users with Compound, uniswap, Curve, YFI, YFII One-click mining for popular currencies such as free of Gas fees allows ordinary users to easily use DeFi on the CeFi portal.

The same is true for Binance. Whether it is LEND, which was launched as early as the end of 2017, or LINK, which was launched at the beginning of 19, or the recent Internet celebrities Compound and MakerDAO, it is not only one of the first top trading platforms to deploy high-quality DeFi projects, In addition to accurate judgment and listing of high-quality DeFi token projects, it also continues to provide financial support for innovative DeFi projects with development potential, and discusses with high-quality project parties how to design more optimized transactions, liquidity models, and token economy Etc., to help them better define the market positioning and future development plans of their products.

That is to say, the huge tentacles of mainstream trading platforms have already extended to DeFi in a deeper way, far more than simple listings. In addition to launching a number of high-quality DeFi projects on the Kucoin trading platform, it also launched a DeFi zone, and launched a DeFi mining function on its Pool-X platform, which supports one-click mining for some projects, making it easier for users to participate in DeFi more quickly investment.

However, due to the popularity of the market, the mainstream trading platforms have also started to move frequently at the "coin listing" level in recent times, and there is no lack of "CEX after knowing and hindering to follow the currency, making DEX dig CEX to sell, and disguised to let yourself take it" Questioned.

This fire coins Seventh Lord admits, for on-line DeFi money they actually are some concerns, mainly worried about the future of these modes will not be valuable. However, as a trading platform, one of the most important functions and missions is to help users connect assets, because some of these assets have the opportunity to become valuable assets, so for CEX, it is obligated to connect users with value assets that may grow in the future. .

Kucoin maintains a consistent and strict style when choosing DeFi projects. KuCoin International CEO Johnny Lyu once said, "Compared with the popularity of the project, we value the project's technological innovation and application scenarios." KuCoin believes that the more concentrated the funds, the easier it is to become a target of hacker attacks. Code audited projects, or projects named by code auditing companies that have code vulnerabilities, are time bombs for user asset security. For the sake of user asset security, even if the project is hot, Kucoin will not go online. Risk project.

CZ previously stated that although there are many bubbles in DeFi and may burst at any time, some basic innovation mechanisms will remain, so for Binance, "we will not passively respond to these changes, but hope to actively embrace these changes." .

However, although the DeFi ecosystem has ushered in an unprecedented explosion in the past six months, locked-up assets have continued to rise and gameplay has become increasingly diversified, it is still too early to talk about "subversion". Even though various DeFi agreements are covering financial scenarios such as mortgage lending, transactions, derivatives, and payments, the number of agreements in each scenario is still very limited.

02 The starting gun has just started, and the competition is not zero-sum

Most directly, Uniswap's 24-hour transaction volume historically surpassed Coinbase on August 30, but as of September 24, the total market value of the DeFi concept currency still only accounted for 3.7% of the entire digital currency market. In Binance’s view, from In terms of market value, DeFi, which has been in full swing for more than two months, is still small.

Fire currency Seventh Lord this bluntly: uniswap transaction volume in excess coinbase is a big leap, but not to shake the extent cex . On the one hand, the properties of coinbase determine that its transaction volume accounts for a small proportion of the entire market. On the other hand, the transaction volume on uniswap is greatly stimulated by short-term liquidity mining.

More importantly, except for a small number of mainstream currencies, most altcoins on uniswap have very poor liquidity. The high gas fee of the current Ethereum network also determines that the experience of uniswap is not suitable for high-frequency transactions and ordinary users.

Jay also holds the same view. Although he is stingy about Uniswap's mathematical beauty, he also admits that Uniswap is still difficult to replace due to the lack of transaction depth, the inability to support large transactions, and the inability to independently price the Uniswap platform. The current mainstream trading platform.

At the same time, Jay believes that the two parties are definitely not an either-or zero-sum situation. On the contrary, the future should be a trend of complementary integration and complementing each other. DEX can be used more as a supplement to the current traditional trading platform, and they can satisfy some parts in the future. The user's transaction needs provide users with more transaction options.

"At present, DeFi is in the barriers to entry, user traffic and product experience are not good, while CeFi is criticized by customers for transparency. We can use DeFi to collaborate to complete asset custody and clearing work, while CeFi can be used in customer acquisition and compliance To play a role in such aspects as to provide users with better services."OKEx's "CeFi+DeFi" integration-becoming a bridge for users from CeFi to DeFi is also one of the general consensus in the industry.

KuCoin chose to work hard on the underlying technologies that decentralized applications such as DeFi and DEX rely on, and solve the current problems of DeFi by creating a public chain KuChian that focuses on the financial sector, thereby promoting DeFi to achieve financial-level commercial applications. It is reported that KuDEX's decentralized trading platform, KuDEX, will also be launched after its public chain mainnet goes online.

Binance has also been actively exploring and constructing the financial infrastructure of digital assets, especially stablecoins, trading, lending, and financial derivatives (futures, options). Recently, Binance Smart on the main network has been officially launched. Chain is committed to establishing a sustainable DeFi ecosystem.

Everything has just begun. As the most innovative field in the entire industry, DeFi and CeFi are destined to coexist for a long time in the foreseeable future.

03 Be wary of DeFi gray rhinos, the road is obstructive and long

For DeFi practitioners themselves, it is more likely that they are not concerned about how to "subvert", but rather to eliminate risks. After all, only half a year ago, DeFi was not as popular as it is now, and even because of frequent occurrences. The security incident was labelled as a "hacking cash machine".

According to the statistics of SlowMist Technology, in August when DeFi games such as liquidity mining were popular, 4 related security risk accidents occurred intensively on the Ethereum chain.

And at this stage, basically the new and old teams are facing the same security risks. In the early morning of September 14, in response to the sudden decline of the TVL (lock-up volume) in the agreement, bZx officially tweeted to confirm that it was attacked again, and the loss is expected to be about 5000 ETH .

Although the official has repaired the agreement and will cover the loss through the insurance fund, whether it is for bZx, which is "leaked in the night," or the overall DeFi ecology, this attack will undoubtedly strike a lot of DeFi projects again. The wake-up call.

Jay reminds investors that they should do a good job of risk control, invest carefully, and don't treat speculation as investment . He felt that the current currency circle felt like it was in 17 years, and even refreshed everyone's cognition at a speed far surpassing that of the time. With the on-site market boom, the existence of bubbles is certain.

The future will come, but it is not yet. As far as the current hot picture of wealth-making narrative continues to extend, DeFi is undoubtedly a sailing ship with the pointed masts of the sea standing on the coast and looking into the sea.

At the same time, we must also be soberly aware that after 3 months of popularity, the total market value of DeFi only accounts for 3.7% of the entire digital currency market. It is far from reaching the true tipping point, so most attempts may be capital accumulation The next moment of carnival.

"Most projects in DeFi will fail. Of course, this does not mean that DeFi is not good, but only a few can succeed, and these few projects will achieve great success." The real battle has just begun