The development of the three fields is relatively independent, and they have made certain achievements in exploring in a stable manner. Before 2019, there were not many intersections between the three fields, but because they are all based on the relationship on Ethereum, after 2019, there will be more and more cooperation between these three fields.

Among them, the stable currency is actually the infrastructure of the latter two. The stable currency loan and the transaction pair on Dex can well bear the medium and bring traffic, and the Dex itself will integrate the lending function to provide users with more Transaction options. According to this development trend, there will be more and more cross-experiences among the three.

But an embarrassing situation is that the integration coverage of stable currency, lending, and Dex is very small. A very simple example is that centralized exchanges can provide a variety of products to meet trading and peripheral needs, and multiple currency trading pairs, Leverage, futures, margin financing and OTC, etc., and Dex can only do currency transactions.

Moreover, it is only ERC20 currency transactions. dydx has added decentralized lending on the basis of transactions, but this is still far from meeting the complete transaction needs. The final combination of the three fields is that there is DAI on Dex trading pairs, and at the same time provide mortgage ERC20 assets to borrow DAI, and then, there is no more.

Financial services are never that simple!

According to my understanding of financial services, general financial services revolve around the assets themselves, which can be physical assets, virtual assets, credit assets, or mortgage assets. The farther a financial service is from its actual value, the more "endorsement" its commodity needs. The development of social financial services is also due to the fact that there are comprehensive services around assets, guarantees, credit enhancement, insurance and laws, etc. These are all ways to endorse assets to shorten the "distance" between them and their actual value . Nowadays, many Defi projects are financial services themselves, but the corresponding commodities are extremely limited, which has something to do with the lack of available asset classes in the blockchain. Behind this limitation is the contradiction between the current blockchain and the real world.

Although blockchain explorers are constantly looking for solutions, it has always been difficult to introduce real assets into the blockchain. In the process, seeking new blockchain assets has become a temporary direction.

Among them, referencing BTC assets to the contract is one of the current problems to be solved intensively. BTC does not have a programmable contract, and the cross-chain of PoW has always had the problem of finality, so the introduction of cross-chain cannot be well realized. The new cross-chain projects are all promoting their own isomorphic cross-chain, and the heterogeneous cross-chain is basically in a state of stagnation, as you can see from the development of Cosmos cross-Ethereum Ethermint for so long.

Therefore, in the direction of introducing BTC assets, people began to prefer the solution of DAO organization. Among them, WBTC is a solution. WBTC is an ERC20 issued on Ethereum by DAO organization members storing BTC at a ratio of 1:1. Tokens, WBTC can be directly circulated on the Ethereum protocol. Many Dex have integrated this WBTC transaction pair to compete with the BTC transaction pair in CEX. This solution is effective and fast, but it still needs popularization and trust .

Staking assets are another asset that everyone wants to solve. According to statistics, the current value of locked assets in Staking is about 6.4 billion U.S. dollars, which is a large asset class, but there is no way to circulate it because of the lock.

When solving this problem, I found that such assets have a typical feature, that is, they have fixed income rights. The corresponding product of such assets with income rights in traditional financial services is called ABS (asset securitization). ABS is an asset derivative with asset attributes, but it is a little bit far from real value assets. Turning Staking assets into ABS circulation is an innovation in the Defi field. This innovative logic is theoretically the same as that of DAI. The logic is somewhat similar, that is, mortgage endorsement obtains equivalent value. Mortgage ETH to obtain DAI, and mortgage Staking assets to obtain ABS. The difference is that DAI and ABS perform different functions.

With more and more PoS consensus projects landing in 2019, Staking assets will also be enriched, such as XTZ, ATOM, DOT, etc., and there will be more and more corresponding ABS assets. The generation of such assets will bring Defi Come more possibilities. Under normal circumstances, whenever a new asset is generated, a variety of services around the asset will be derived. If this service is decentralized, it will be more perfect, just like if there are multi-asset trading pairs in DEX, there are also Decentralized deposits and withdrawals, as well as decentralized financing and debt financing is a truth.

For ABS in traditional financial services, the assets need to go through multiple rounds of endorsement, and there are so many cumbersome links that you can’t imagine. Guarantees, credit enhancement, insurance and laws will not be pulled down. However, the ABS of Staking assets, in my understanding In other words, many links can be omitted, because the endorsement of the asset itself is a public chain, and the object of credit enhancement is also a public chain. Some unqualified ABS products have been screened out here.

Law and insurance need to be increased, and especially need to be decentralized. At present, there are already many teams working on projects in various vertical fields. The Stafi_Protocol project is turning Staking assets into ABS, decentralized There are also projects in the field of chemical insurance that are being explored. Credit enhancement has not been seen yet, but it should not be far away.

It is foreseeable that with the development of Defi, there must not be only three important areas, but will gradually increase, and ABS, I think, is the fourth key area that is most likely to develop into Defi in the near future, that is, stable currency. Lending, Dex and ABS. As a strong endorsement asset, ABS assets are closely related to Dex, and can directly become an asset traded on exchanges.

Moreover, ABS assets have a typical decentralization tendency, that is, the endorsement is guaranteed by the public chain and code, and circulation in Dex is a very good "political" correctness. In addition, Staking assets can also be used as collateral to generate stable coins or lend. After the Ethereum transfers to the PoS consensus, the difference between mortgaging ETH to generate DAI and mortgaging ABS (ETH) to generate DAI is only the difference in value. The value of the latter will always be above the value of the former, or completely include the former.

Of course, you can issue ABS in a centralized way, but this returns to the issuance of traditional ABS assets. The issuer of traditional ABS assets needs to seek the endorsement target of the original asset. In addition to the public chain endorsement, it also needs to perform a series of work such as credit enhancement, guarantee, insurance, and law. If such operations are not performed, the mortgaged assets will be completely centralized. In the hands of the issuer, compared with trusting the Stafi code, you need to pay more trust to trust this kind of centralized ABS assets.

So to sum up, the asset has changed from Staking to ABS, and has become an interest-bearing blockchain asset. This asset supports the integration of various Defi applications, and even has the potential to become the underlying asset of the Defi project. It will be the future Defi Fields, Integrals, Stablecoins, Lending, Dex and ABS.

Of course, explorers will continue to look for the entrance of physical assets to the blockchain. USDT is an example, and then TUSD, PAX, and recently the controversial Libra. Although they are all stable coins, their appearance proves that people The determination to connect physical assets to the chain.