DEFI behind the unusually hot is the Ethernet Square gridlocked , STAR open ice-breaking trip
in July，2019, Square Ethernet average transaction costs tripled, reaching 0.14 dollars, although with a few days ago of 3 seem trivial compared to the dollar. At that time, it meant that every time you sent a transaction, even if it was a small one dollar transaction, if you paid on the Ethereum network, you would have to pay an additional $ 3 transaction fee.
Up to now, due to the reduced efficiency of the liquidity mining output of several star defi projects, the gas fee of ETH has fallen, and is currently around $ 1 .
What are the reasons behind the hot DEFI ?
We have summarized several reasons for the popularity of DEFI . We try our best to analyze it from a macro perspective or a micro perspective, although it may not be completely correct, I hope to give you some reference.
‘ Liquidity mining ‘ is profitable: Liquidity mining provides liquidity and can obtain token rewards for the project. These people mining also been dubbed the ‘ peasant ‘ (Farmer) , through their own mortgage ETH to get incentives and other assets, and some mining and analysis tools to help them to always choose the highest yielding defi projects, such as defipulse , Defiprime, etc.
Figures are derived from defipulse
Hot money in the market has nowhere to go: From a macro perspective, under the current global epidemic situation, some hot money has nowhere to go. Consumer demand in a large number of industries has decreased. There is no traditional product with relatively good returns to invest in. Gold and the Nasdaq are pushed to The historical high illustrates this point. The defi mobility products, high depth of the market, only a small amount of money you can get involved in higher yields, which makes this part can withstand the corresponding risk of speculators flocked to participate
Finally, the project sponsor is unfriendly to the center of the exchange, which led to more entrepreneurs choose to block chain DEX listed: Centralized exchange because it is registered in the Stock Exchange of various countries around the world, they tend to KML and KYC has strict requirements, and some have various liquidity requirements for project sponsors. However, except for a few exchanges with a certain amount of traffic at the head, they can bring certain benefits to the project, and other exchanges often cannot bring equal value to the project, and require a certain amount of currency fees or short candy . In addition to this, the founders of many blockchain projects simply choose to list on decentralized exchanges such as uniswap or balancor .
What are the pain points of DEFI ?
As mentioned at the beginning of this article, the high gas fee of Ethereum is a major problem blocking the application of DEFI . At the same time, the network of Ethereum is congested. Many participants have to endure high transfer delays while bearing the high gas fee. Suffering.
In addition, in the case of limited application scenarios, risks are increasing day by day. The main application area of DEFI is in lending. The project also generated tokens in ‘ borrowing that is mining ‘ produced under the conditions, it will produce a large number of invalid borrowing requirements, please note them in the absence of lending demand situation, in order to participate in the dig and replace currency Process, this will create a huge loan bubble.
STAR public chain seizes the pain points and seizes the opportunity to announce its entry into the DEFI field
After the STAR public chain team has done in-depth research on the DEFI market, combining games with DEFI will solve the current dilemmas of the DEFI industry.
First DEFI network congestion and high fees will not worth mentioning, STAR is DPoS proof mechanism, an official at EOS based on a lot of underlying code modified, single-node test network operation run tps up to 10 million transactions.
Secondly, according to official disclosures, its DPoS mechanism will lay out the corresponding official DEX around DEFI , which to a certain extent avoids the consequences of spamming tokens, thus ensuring the validity and authenticity of any project running on STAR
STAR ’s ice-breaking journey has just started. I believe STAR will hand in a satisfactory answer for us in the future .