30s Summary

The author predicts key trends in the DeFi space for 2022. These include: rising prominence of Omnichain DeFi, offering deeper liquidity through multiple chains and centralized sources, increased involvement of institutions in DeFi, emergence of complex derivatives on the DeFi scene, continued enhancements in user experience and accessibility, and the introduction of AI-powered DeFi tools for more effective operations in areas like risk assessment and investment strategy.

Full Article

Hey folks, it’s that time of year again—the last quarter where we try to predict what’s going up and what’s coming down in the next year. But this isn’t just blind guessing—it’s people who are working in the guts of web3 who’ve got a solid line on where things are going because they’re the ones building them.

Weighting probabilities and piecing them together, here are some trends I feel pretty sure about.

First up, Omnichain DeFi which means getting liquidity from multiple chains and centralized sources is going to take off big time. This will improve pricing and offer deeper liquidity, solving the big problem of liquidity fragmentation. It will mean people can tap into virtually unlimited liquidity delivered onchain, while not having to worry about custody issues.

Next, look for institutions getting more deeply involved in DeFi. This year has only seen a few big players dipping their toes in, mostly via ETFs. But that’s set to swell next year thanks, in part, to loads of infra added through 2024. It’s really going to be felt around tokenized Real World Assets, which already account for billions.

Even trickier derivatives will start to be seen on the DeFi scene. This not only expands into new blockchain ecosystems but also starts to take on a wider range of assets including leveraged prediction markets. Expect to see the first derivatives exchanges for Bitcoin DeFi come online, allowing users to mint stablecoins with BTC that can then be used on these DEXs.

Look forward to continued improvements in user experience and access. This means smoother interfaces, easier onboarding, and better retention. The top DeFi projects for next year will combine cool features, useful products, and streamlined design for a user-friendly experience.

AI-powered DeFi tools are also on the horizon. Automated trading bots, risk assessment tools, and predictive analytics will make life much easier. Think AI assistants for identifying investment strategies, scouting the best yield farming opportunities, and even mitigating risk by detecting threats early. Implemented well, they have the potential to shape our technology experiences in the most tangible ways.

Let’s see what the new year brings! Not everything will come to pass, but if these trends take off, we’re in for an exciting time, no doubt.

The author of this article is Ran Yi, co-founder of Orderly Network. Ran is passionate about DeFi, and with his background in global asset management and crypto, he’s got his finger on the pulse. Follow his insights to stay ahead of the game.

Remember though, this is just his expert opinion, don’t take it as investment advice. Always do your own research and consider seeking advice from a professional before making any kind of investment.

Source: Cointelegraph