Today, decentralized exchange Uniswap officially released its governance token UNI. Due to the popularity of the UNI airdrop, the gas fee for a single transfer has been pushed up to 660gwei, about $5.27. With the release of Uniswap’s token, the DeFi sector has entered a new phase of development, with new opportunities up for grabs.
In the first half of this year, the DeFi sector was thriving as various projects sprang up one after another. The boom caught many people by surprise. The catalyst was the launch of the COMP Token on June 17. After COMP started trading, its price surged, quickly leading to token issuance by a slew of DeFi projects, which were much sought after by investors.
Since June 17, in just over three months, the DeFi sector has seen great fortune made. The most well-known example is YFI. As of writing, the price of YFI has reached $33592.79, which is even higher than that of Bitcoin at its peak. Even the price of its fork YFII has reached $4627.24.
Where there is exuberance, there is bubble, just like two sides of the same coin. Recently, the price of SUSHI plummeted after Chef Nomi, founder of SushiSwap, cashed out nearly $14 million. And Emerald Mine (EMD), a liquidity mining DeFi project on EOS, appeared to be an exit scam. Such events should give investors pause and wonder: has DeFi come to a dead end? Where will DeFi go next?
We all know that the blockchain industry is essentially characterized by its decentralization, anonymity and lack of supervision, which means that anyone can deploy contracts on the public blockchain. Therefore, the ecosystems of public chains must be a mixed bunch. There are good projects, but there will also be scams. The ICO craze in 2017 was a hard lesson to learn, and the current DeFi boom is no exception.
However, today’s DeFi is very different from ICO. For example, DeFi has practical applications and brings real returns to users, whereas the projects behind the ICOs never came up with any real product. In addition, the key driving force for DeFi’s further development lies in the innovation in its models.
After seeing so many projects come and go, it’s not hard to see that the success of a project in DeFi depends on whether the project’s model has a positive impact on users, such as incentives, user experience, and returns. This is also the fundamental driving force of DeFi projects and hinges on the technical strength of the project, interface design, mechanism design, etc.
As a result, the DeFi projects that focus on the technology and work hard will reach new heights, whereas those exit scams will not survive. Aelf belongs to the former category.
AESwap, launched by aelf recently, is the first DeFi project based on the aelf network. It is committed to building a global leading decentralized trading platform and a more efficient, convenient and safer DeFi product than Uniswap. Now it has integrated the features of Token Exchange, adding liquidity to earn income, and creating transaction peer-to-peer.
In the future, aelf will continue to make efforts in cross chain DeFi. Thanks to the unlimited scalability of the aelf blockchain system, cross chain mechanism of protocol layer and multi-level side chain design, aelf is able to keep gas fee low with fast transaction speed. Moreover, applications in the aelf ecosystem can also interact with the Ethereum ecosystem. With its well-developed cross chain mechanism and high-performance contract, aelf is able to solve the problems of limited performance and transaction congestion of Ethereum.
Although the current DeFi sector does have an element of hype and bubble, the products of these DeFi projects do have real market demand. The DeFi sector will continue to grow, integrate and optimize. After the hype is over, the market will eliminate the bad projects and only the good ones will remain.
In this new phase of DeFi development, participants will be less enthusiastic and the growth of DeFi projects will not be as fast. I believe that the development of DeFi will become more and more rational, and AESwap will live up to our expectations.