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7 highlights from the Delphi Digital DeFi report

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Overcoming transient losses is the key.

7 Highlights from the Delphi Digital DeFi Report

Original article by Tommy Shaughnessy

原文编译：MK，MarsBit

This is something I've read about. DeFi's most comprehensive report.

Share my thoughts on their theme. + Projects I want (don't want) to fund in 2023.

Decentralized Finance 在熊市中被碾压，大多数蓝筹 DeFi Token 下跌 80-90%，长尾 Token 下跌更多，价格图表中很难看到刚刚放弃或解散的团队. 这需要时间才能显示出来。

The author points out the growth headwinds for DeFi - the DeFi product is based on speculation - entry is difficult - it is hard to retain users - the overall user experience in the space is far from ideal.

我要补充的一些不利因素是： - 创始人启动 DeFi Token / 项目的监管不确定性 - 现有 DeFi 项目的监管不确定性（Uniswap 费用转换任何人）- 2 年期国库券利率为 4.24％，这是风险的真空资产 / Token 价值。

Topic 1

Losing CEX trust is bullish on DEX, given FTX, I totally agree. CEX is here to stay, especially for most users, centralization fraud will occur again in every industry DeFi needs to iterate constantly to steal market share from CEX over time.

What does that mean? The arrow should point in the direction of recreating the FTX experience on the chain. This means a sophisticated matching engine and a one-stop shop for an easy consumer experience (converged DeFi protocol). DEX and CEX market share are testament to our success.

Theme 2

Blue chips rise and it is clear that stakeholders will flock to more established DeFi start-ups (Uniswap,Aave, etc.) with time-tested brands, higher TVLS, well-funded teams and more sticky TVLS, but at the expense of more grassroots, experimental DeFi start-ups.

戴上我的 VC 帽子，DeFi 创始人也很难以超创始人优惠条件（即高价值、长背心）吸引资金，因为投资者可以分配给具有流动性 Token 的实时 DeFi 项目，这些 Token 的风险低于启动一个新项目。

Theme 3

0-1 speculative primitive, people want a primitive that offers high leverage and ease of use, we have dYdX (DV Port Corporation), GMX and other options available, but we have a long way to go binance horizontal volume and Jurisdiction Blocking/user interface is a headwind.

Binance on-chain experience needs 5-10 years of continuous DeFi and L1/L2 improvements, God forbid anything happens to Binance (which will kill cryptocurrencies, not something I want to see), we need an on-chain option. My favorite case is the slow, sustained DeFi shift.

Theme 4

Undercollateralized money market wintermute Efficient Market. Depositors get higher returns. Crypto has excess mortgages (aave, compound), but we need undercollat.

I'm not sure if there is gold unlocking here, or just a mix of TradFi (centralised risk analysis and assessment) and crypto tenants (on-chain transparency and access to lending) to achieve something better than excess mortgages for a more efficient market.

Genesis matters right now - DCG owes Genesis $1.7B - Genesis owes Gemini Earn $900m - Gemini Earn where users' inability to withdraw a steady 6% yield creates and risks.

May be a clue to the future, but the Gemini, Genesis, DCG debacle will be long and drawn out, and it has been transferred to the crown jewel of DCG (grayscale) future expense generating pressure (litigation, Reg M), which hurts DCG's liquidity prospects.

Theme 5

Improved Passive LP products + Delta Neutral is for professionals.

Beating impermanence losses is the focus, and if this cannot be achieved, then the order book may dominate (for professionals, amms may win the long tail) the project is iterating to improve IL.

GammaSwap 提到使用 GammaSwap，用户可以借用 LP 头寸并分离 Token ，从而获得无常损失的正风险敞口。

The liquidity borrower pays the GammaSwap Limited partner the financing rate, which results in a superior earnings structure to the general limited partner in all cases.

Theme 6

Given the growing list of DeFi applications, a clean and extended aggregator is clearly in long-term demand DeFi's existing front page will wisely expand integration (Zapper, DeBank is port cos) and functionality.

Historically, wallets have struggled to monetize MetaMask by adding fee swaps for profit. In the long run, maybe some MEVs will return to the MM via Flashbots and Suave. I think if the team executes in the right way, wallets could enter a new era of emphasis.

With the extension of Wallet, they should roll out their own Web3 browser/user interface in order to navigate DeFi/Web3 from within that space, instead of visiting a website and then popping up your wallet. With Metamask, functional Wallet browser would be good, Phantom, XDEFI Wallet (port company)

Theme 7

放弃 veTokens，CurveFinance 拥护该模型。您锁定治理 Token 的时间越长（2 周到 4 年），您获得的投票权就越多，您从掉期中赚取的费用也就越多。更多的投票权 = 更多地控制 CRV 排放到矿池。

这很重要，因为如果项目本身积累了足够的投票权，他们就可以将排放物直接排放到他们的矿池中，而不是打印他们自己的 Token 来提供收益。

What happened was that Convex Finance popped up and allowed users to convert CRVS to CVXCRVS so that they could receive the usual rewards while streaming/unlocking.

Convex 允许用户 - 为 cvxCRV 抵押 CRV 以获得流动性 Token + 费用生成（convex 为 veCRV 锁定 CRV）- 为 vlCVX 抵押 CVX 以控制仪表（和 CRV，cvxCRV 人正在锁定）。

Since only the vlCVX had canonical control, it offered supersize control (1 vlCVX controlled 5 VecRVs), inflating the price of CVX in the process, as the Convex Convex's lead became benign on the curve because it provided incentive separation. Convex offers a rate of return without lock-up or oversized government authority.

Ve Dynamics have their problems, but it's an improvement over normal pledge. I think it's becoming a clone of many projects vying to use token use cases.

I'm not interested in 2023 funding and the projects/ideas I'm interested in (I could be wrong a lot because I'm human, but I'd rather be in the ring than in the crowd watching) 2023 funding is not so interested.

DeFi project

Is not materially different from the real-time and mobile versions (the risk of buying a mobile DeFi Token with community is lower).

The DeFi project is on the less popular L1s outside Ethereum (and L2s), Cosmos and Solana.

Too risky to build on an established L1 or powerful new L2. Be open to great ideas.

DeFi index game (boring, requires a lot of AUM to expand). It'll be handled by TradFi.

Synthetic stock

(It's too risky to regulate, and it's not crypto-native, and I hate recreating what we already have. Would rather go completely encrypted native vs have one foot in the old world.)