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So as the second half of our last article, here is

If credit creation and balance-sheet expansion are DeFi’s “horizontal expansion”, the tools and ways to enrich the DeFi market to leverage is a “vertical expansion” — as underlying assets become more complex, the asset-end of the DeFi protocols will face more demand for fixed-term and fixed-rate financing. …


Andre Cronje’s recent announcement of the acquisition of Pickle Finance, C.R.E.A.M., COVER Protocol, and Sushiswap, four of the best-known DeFi protocols, has attracted market-wide attention. When industry pioneers start consolidating their market positions through mergers and acquisitions, we have always wondered if DeFi is becoming over-crowded, or growth is slowing down and the market is being carved up by big players.

“Is it possible for DeFi to continue to grow?

We are very optimistic about the answer to that question. The reason why we are optimistic has to start with the real change brought by DeFi.

“Asset” is of the most scarcity for a world of value exchange that blockchain hopes to create. The explosion of DeFi responds to the desire by introducing “Credit” as an asset to the blockchain world for the first time. …


DeFi is a Big Thing, but we’ve only just glimpsed a corner of the Holy Grail.

To understand the meaning of DeFi — decentralized finance, in a narrow sense, is “using decentralized networks to transform traditional financial products into a disintermediated, trustless, and transparent protocol”. We think the more ambitious vision of DeFi is to realize a “universal market access”, which allows anyone in the world with access to the internet to own or trade any financial assets openly.

From the recent explosion in DeFi market, we can see some significant features. From DEX, stable coin, leveraged lending, synthetic assets to emerging insurance products. With the strong momentum of liquidity mining, DeFi is transforming traditional financial products into protocol forms a hundred times faster than we used to see. We are also seeing more complex principles and structured financial tools have begun to penetrate the DeFi market. But the current DeFi is still incomplete as a “decentralized financial market” because of the lack of some basic products and services. …

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