2020 DeFi Industry Research Report: Market Overview, DEX, Derivatives

↯ Summary

1. DeFi continued to develop strongly in the third quarter, with total locked-in volume increasing by 500% from the second quarter to $11.4B. The DeFi market cooled down relatively in October, with the locked-in volume at the end of the month roughly the same as at the beginning of the month, and the overall DEX trading volume fell, down 34% in October;

2. The popularity of DeFi has pushed Ethereum transaction fees to an all-time high of $14 per transaction in early September. DeFi performance is obviously driven by hot projects and events such as yearn.finance ;

3. The oracle project Chainlink has long been ranked first in the DeFi market value list. The average return rate of the top ten DeFi projects by market value (excluding YFI, DAI and WBTC) is 89%, and half of them outperform Ethereum;

4. AMM drives the growth of DEX trading volume. The total DEX trading volume in the third quarter reached $47B, 4.2 times the historical total trading volume and a quarter-on-quarter increase of 1,155%;

5. The high returns brought by yield farming to participants attracted a large amount of liquidity and users in a short period of time, but the decline in yields is an inevitable trend, and the growth of liquidity has gradually stagnated as the popularity fades;

6. In the early stages of development, forked projects compete with the original projects for the market, showing a trend of "one rises while the other falls", but in the long run, it is difficult to fundamentally shake the status of the original project;

7. The derivatives sector is still dominated by synthetic assets. The overall locked value increased by 169% from the second quarter to $293M, and the proportion of DeFi's total locked value decreased from 15% at the beginning of the quarter to 7% at the end of the quarter. The trend of declining popularity in late September was more obvious than that of lending and DEX.

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