Grayscale is buying, buying, buying. Bitcoin suddenly reaches 18,000 US dollars. DeFi is also advancing by leaps and bounds without any moral ethics.

BTC has reached $17,000 and is on the verge of $18,000. In the current blockchain market, the two most common voices are:

First, Grayscale keeps buying, and BTC keeps rising, without any moral principles;

Second, the DeFi series of tokens are rising, and DeFi events are happening one after another.

These two voices can be represented by two pictures, about Grayscale and PayPal for shopping, as follows.

Regarding DeFi, many people are looking for FAANG in the blockchain world, as follows.

Of course, there are many voices from other currencies, but overall, these two have the loudest voices.

1. DeFi big news: UNI mining stopped

A big event in DeFi yesterday was the end of UNISWAP’s liquidity mining, which meant that a large amount of ETH might withdraw from UNISWAP, and the UNISWAP liquidity pool fell from more than 3 billion US dollars to 1.79 billion US dollars.

That is to say, $1.2 billion of funds were withdrawn, and about $200 million were exchanged for other assets on Uniswap. Where did the withdrawn funds go? Did they go to Sushi?

According to the locked data of Sushi, it increased directly from 425 million US dollars to 968 million US dollars, which means that nearly 500 million US dollars went to Sushi, as shown below.

Funds pursue profits and will flow to where the returns are higher. So how much funds have left DeFi?

According to Debank data, as shown in the figure below, the locked position data of DeFi only fluctuated slightly, and there was no obvious impact. Therefore, there was not much capital outflow from DeFi.

UNISWAP is a leading application in DeFi, and liquidity mining is an important incentive for UNISWAP. The cessation of incentives has a significant impact on the locked funds of UNISWAP, but it has not affected the success of UNISWAP or the locked funds of the entire DeFi ecosystem.

From another perspective, with the rapid development of DeFi, the DeFi protocol is also becoming stronger and stronger. The DeFi ecosystem can accommodate more and more funds, and the big funds that come in don’t want to leave.

But maybe you'd say, there were two other lightning attacks yesterday.

2. DeFi is developing wildly, and flash loans are the wolf

I personally believe that flash loans are the scavengers on the road to the development of DeFi.

On the road of DeFi development, a good idea and creativity can attract a lot of funds without security review. This has been verified when DeFi liquidity mining was crazy.

Does security audit guarantee safety? There may be no loopholes in the code, but there are economic loopholes between the various DeFi protocols. This provides arbitrage opportunities for flash loans.

There have been many flash loan cases recently, including two yesterday:

1) Compound’s forked project suffered a flash loan attack and lost $3.3 million.

2) OGN’s stablecoin (OUSD) was hacked

The price of OUSD fell to 0.14u, and the team believed that the attack was related to flash loans.

Some people say that flash loans have become the biggest potential threat to DeFi. I say that flash loans are wolves on the grassland, ready to clean up DeFi protocols that cannot withstand a beating at any time. The existence of flash loans makes DeFi protocols stronger.

3. DeFi Ecosystem Landscape

Below is the DeFi industry landscape for Q3 drawn by TokenInsight. This industry landscape is constantly being enriched and improved, and of course there are many DeFi protocols that are not included in the map.

In DeFi, people are looking for FAANG, and what they can see are AAVE, UNI, YFI and other major currencies in the main tracks. But in the Internet, there are not only FAANG, but also many products that provide other services.

Therefore, in the near future, many applications will use DeFi protocols, just like when mobile phones become powerful, social and life service tools such as WeChat, Meituan, and TikTok are available.

Dr. Xiao Feng, Chairman of Wanxiang Blockchain, said:

The Internet platform is demand-driven, that is, consumers drive the operation of the network; the blockchain era is no longer consumer-driven, but driven by developers, because blockchain is a developer-friendly network.

4. Experiencing DeFi is a very important point in participating in DeFi

Dr. Xiao Feng, Chairman and General Manager of Wanxiang Blockchain, mentioned in his speech "The Ultimate Conjecture of Blockchain Application Model" that the ultimate application model of blockchain is:

By highly integrating various functions, blockchain can become a public infrastructure, thereby lowering the threshold for entrepreneurship, stimulating enthusiasm for innovation, and giving birth to great applications.

People have been trying to lower the threshold for blockchain application development. Here are a few examples.

1) MEME

In the cryptocurrency circle, you may have heard of the meme (pineapple). This meme once increased more than 100 times, and a meme was sold for several thousand dollars.

And this originated from a joke, a joke about developing a DeFi application in 5 minutes. The reality is that it is not possible now.

2) Radix

Radix is ​​the first layer 1 protocol built specifically for DeFi.

Radix provides tools for each key layer of DeFi, such as the consensus layer, application layer, and ecosystem layer, thereby providing users with tools with unparalleled scalability, ease of use, and liquidity potential. It is convenient to develop DeFi applications.

Of course, Radix has not yet been released, and it is still early to know whether it can be successful. But in terms of lowering the threshold for DeFi development, it has been moving forward.

As a non-program, the threshold for DeFi development is lowered, and the development has nothing to do with you. What is relevant to us is that the more DeFi products they develop, the more opportunities we can find and earn early profits in the industry. It is important to experience DeFi with more users.