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Kerman, Founder of DEFI Weekly: The future of DEFI

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The bull market will culminate in the crazy development of DEFI.

The Insiders Recap to 2020: The Path Ahead

Original source: Defi Weekly

Original compilation: 0x26

Kerman Kohli, Founder of Defi Weekly & NBSP; Released the DEFI field's 2020 review and 2021 forecast, RHYME sorted out Kerman's 2021 forecast as follows:

If DeFi 2020 can be summed up in one sentence, it is to lay the groundwork for its launch in 2021. We started with the early Defi, a toy prototype, and soon we would be responsible for managing trillions of dollars in transaction volume and hundreds of billions of dollars in on-chain assets.

Based on what has happened so far, Kerman has a few predictions for what might happen in the coming months:

1. Every project may try to do anything to increase the amount of money it has. But bubbles caused by overexpansion are likely to burst for lack of focus.

2. For high quality projects, token rewards are not as easy to get.

3. The next bear market will be what people call "the death of the DeFi".

4. Stablecoins are going to be a surprisingly large market. The emergence of many players will support the emergence of swaps, leverage and more derivatives in this area.

5. The leverage tools of this cycle will be more lethal than the last one, and given Ethereum's limitations, we may see more Black Thursdays.

6. The value of the high-quality DEFI project will rise to $10 billion to $25 billion, and the seed rounds of DEFI will become increasingly expensive due to the high valuation at launch.

7. Given the high yield offered by DEFI and the low cost of capital in the real world, TradeFi will become more and more active in this field.

8. At the peak of this bull market, DEFI would be touted as the solution to "the world's problems." As that slogan gets louder, it may be time to consider reducing your position.

9. Because every asset will be encapsulated in some form, there will be less and less representation of the native asset in the user's wallet. Agreements devoted to this area deserve the attention of users.

10. The design space for the new Defi application is still wide open, but more creativity is required, as the basic Defi tools are almost complete. As a result, Kerman expects to see a variety of new financial instruments that have not been possible before.