FIL+DeFi, what exactly is DeFil?

Since June this year, the DeFi (decentralized finance) craze has gradually spread to the whole blockchain circle.Despite security incidents such as the theft of coin, DeFi is still a big wave of catching up BTC and ETH.

DeFi is highly praised for its protection of user privacy, improvement of fault tolerance of service system and real-time cross-domain transactions.However, the author believes that its more important significance lies in the reduction of the centralized third party’s assessment of users’ financial needs, which can conveniently provide solutions for users in financial difficulties.

Strong growth of DeFi

DeFi is not old but it is by no means a new concept this year. It is now nearly three years since the first DeFi application MakerDAO was created. In December 2017, MakerDAO went online, aiming at the stablecoin market. Within half a year, the amount of locked-up in the chain exceeded 150 million US dollars.

With the success of MakerDAO, DeFi has been flooded with applications, and DeFi has undergone a subtle change in direction.In 2018, Compound, dYdX, Uniswap, Dharmar, Augur, WBTC went online, and Stablecoin broke out into a race, but none of us had much insight into its future.

DeFi lock-up volume, DeBank

Since then, Synthetix, DDEX, dForce, Veil, Kyber, InstaDapp, Loopring, Balancer and Aave have been launched one after another. So far, DeFi has developed most prosperously with three protocols: asset aggregator, Farming, and DEX. According to DeBank’s statistics, the total amount of Ethereum-based DeFi protocol lockup on the whole network is up to 11.773 billion US dollars.

Difficulties and opportunities coexist

DeFi is a highly competitive capital redistribution model that reduces barriers to market entry while significantly increasing the competitive efficiency of participants.DeFi will increase the intensity of competition and promote healthy competition, but there is not yet a clear developable and viable project beyond asset agreements and stablecoin.

Understanding market needs, play rules, and mechanisms is critical for DeFi, so the core should not be whether the project is profitable or not. A healthy economic flow is a necessary condition for long-term development.At present, DeFi’s economy is insufficiently connected with the real business, the upfront costs are generally too high, and there is no continuous positive feedback, which makes the cost of trying even higher.

According to Dappbirds.com, there are currently 57 major DeFi projects, and a large number of unknown projects come online or die every day. In general, projects in this wave of DeFi have a high probability of dying to zero, but this does not stop users from participating.

High trial-and-error costs are unavoidable, and focusing on real business is the only way DeFi can move from virtual to real, underground to mass.

DeFil is being perfected

On September 22, Filecoin project leader Colin mentioned the concept of FIL+DeFi=DeFil at the SpaceRace1 celebration, which mainly included:

FIL’s mortgage, which requires a series of applications that cause the FIL holder to go through the Ethereum platform to lend FIL to another stakeholder;

Build a market for miners that allows miners to offer prices and customers to browse the market.

The idea is not new, of course; officials have previously mentioned it in Slack.

DeFil first relieves the miners’ immediate need for collateral when the main network came online, helps Filecoin network grow, and allows lenders to make a profit through DeFi.Kill two birds with one stone, or it could become a model for the mortgage market.

At the same time, DeFil takes advantage of the market and customer browsing needs to make its financial value take root. This is another important action of Filecoin — to maximize token utilization and economy.

However, there is still a long way to go before the project can be implemented.

Circumferential ecology has emerged

Unlike DeFi, DeFil serves the project Filecoin and comes with a real business need to provide real and efficient storage and retrieval of value data, a development currently being advanced by Slingshot within the SpaceRace2 phase.

According to the Slingshot rule, after the end of the phase test, there will be a large number of applications, UI display, whether it is audio and video, text and file, document retrieval and access, which is a call to complete data rendering.

In the future, Filecoin ecology will gain more applications based on real needs scenarios, combined with the economic development of FIL, and combined with the concept of DeFi, DeFil will not stop at the loan mortgage.More usage will definitely boost the future performance of FIL in the market, attract more people, applications and public chain, and build more consumption scenes.

About ZB Group

ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.

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