In the recent DeFi boom, the listing of assets on Binance, Huobi, and OKEx is slower than that of trading platforms such as MXC Matcha and Hoo.
Take MXC matcha as an example. The “big uncle” and “second uncle” YFI and YFII, which have been very popular recently, went online on July 25 and August 21, respectively. Huobi will launch YFI and YFII online on August 23.
In fact, it is not that MXC matcha’s ability to mine hot assets is necessarily stronger than Huobi. But for both parties, digging and following the line are the best strategic choices.
The book “The Innovator’s Dilemma” mentioned that the best strategy for leading companies in the market is to follow. On the contrary, for the latter companies, the best strategy is innovation.
We can compare the two to two swimmers, and player A is in the leading position. If contestant B wants to close the gap and complete the surpass, he must change his stroke, from breaststroke and freestyle to backstroke and butterfly.
As for player A, as long as B changes the swimming style, he will change to the same, and the gap between him and B will remain forever.
Therefore, for leading companies, there is no need to take risks to innovate. Once they fail, the gap will be narrowed, and the gains will outweigh the losses. For the latter companies, if they want to narrow the gap, or even catch up, they must innovate to have the opportunity to fight for the window period for catching up.
“Technology Coin” Dividends in the DeFi Wave
Let’s take MXC matcha as an example to see what the latecomers did right and what they did wrong?
In the MXC matcha community, there is a famous poster “The first stop of the “three major” online project-MXC matcha”, which lists 25 currencies that were launched earlier than the “three major”.
Among them, COMP, KSM, NEST, the largest increase reached 166.7 times, 46 times and 47.5 times, and most of the other currencies also increased by more than 10 times.
On the face of it, MXC matcha is fully staked, and these currencies will be listed on the “Big Three” in the later period, and the gains that can be reaped.
But careful analysis, we will find that these currencies are all technical currencies.
These currencies are almost all different from the currencies in the traditional sense of centralized exchanges. To put it more bluntly, these currencies are all technical currencies, the project party does not make the market, and the price is determined by market participants who recognize their value.
Therefore, the so-called “first stop of the “three major institutes” online project”, to be more accurate, is to choose a currency with technical advantages in the DeFi concept.
But in the DeFi boom, there are no mainstream exchanges that provide liquidity mining or DEX participation. Most users can only participate in the chain, or through wallet applications such as IMtoken.
Of course, the unstable liquidity mining income and the high transfer gas of Ethereum are the main reasons why exchanges fail to access liquidity mining and DEX. This also shows that the current pure DeFi still has a long way to go. To go.
In the post-DeFi era, where is the blue ocean of the exchange?
What does DeFi bring to us?
The first is the transformation of collaboration
On August 30, the 24-hour trading volume of the decentralized trading platform Uniswap surpassed Coinbase. What is important is that the ratio of employees on both sides is 7:1200+.
Seven people, the Uniswap trading platform built with code, actually produced results that surpassed Coinbase operated by 1200+ people, and Uniswap itself does not have traditional advertising, channels, news announcements, but relies on connected interests. Fang, like a neural network, radiates outward.
In addition, the DeFi currency YFI is officially based on smart contracts and provides insurance services for other DeFi projects. In fact, every one of us knows that one day, human beings will be replaced from jobs, but this day may come much earlier than many people expected.
Secondly, DeFi may get rid of the influence of BTC, step out of the independent market, and mainstream currencies may be replaced.
Some time ago, some people divided the currency circle investors into “classical leeks” and “houlang leeks” according to different positions. Among them, “Houlang Leek” holds more DeFi and Polkadot ecological currencies.
Moreover, since the unit price of YFI is already three times higher than that of BTC, many people believe that YFI has surpassed BTC to some extent. In fact, the true quality of YFI will have to wait until the next sharp drop in BTC to see if the YFI and DeFi sectors can get out of the independent market.
However, it is clear that DeFi has greatly replaced the existing mainstream currency. First, the market value of the oracle project LINK rushed into the top five. Secondly, BitMEX contract trading volume and user visits have seen monthly declines.
Similar Web data shows that the monthly visits of BitMEX have almost halved, from 14 million to 6.84 million, indicating that DeFi is gradually replacing the existing mainstream currency.
Third, the traditional project online model is being replaced, the exchange is facing a role change, and the future will compete for the ability to tap high-quality assets.
In DeFi, there is a chain of participation: Ethereum miners, DeFi liquidity miners, DEX traders, the first batch of centralized exchanges represented by MXC Matcha, and the “three major” centralized exchanges.
As the founder of YFI said, the rise of the DeFi craze is triggered by greed. Users participating more upstream means higher potential risks and benefits. In the end, whether or not the exchange can be listed has become a sign of whether upstream participants can retreat.
This makes every early participant of DeFi a de facto angel investor, and puts forward higher requirements for the innovation of the project’s technology and economic model.
The exchange plays the role of a secondary market investor and a “screener” or “connector” between DeFi. In the future, the ability to mine high-quality assets may become the core capability of the exchange.
What is after DeFi?
At present, everyone is betting on the next hot spot in the industry that may explode, and the direction of guessing is concentrated in several aspects: First, the Layer 2 solution for expansion, representing currencies such as OMG, SOL, LOOM, etc. The second is the Polkadot concept, which represents currencies such as DOT, KSM, PCX, EDG, RING, KLP, and ACA.
The third is the concept of NFT, which represents currencies such as MANA, ENJ, and FFF. The fourth is the concept of storage, representing currencies such as FIL, GNX, BLZ, etc. The fifth is the concept of insurance, representing currencies such as YFI and WNXM. Sixth is the concept of DAO, representing currencies such as ANT, NMR, PNK, GEN, etc.
Nowadays, the blockchain is forming a unified network form, getting rid of the development path of “isolated island” in the past. Polkadot’s interoperability may bring further changes.
In the future, decentralized exchange DEX and centralized exchange will be in a situation of long-term coexistence, and the ability to mine technical coins and high-quality assets may become the core capability of the exchange.