{"id":144078,"date":"2020-12-30T12:05:00","date_gmt":"2020-12-30T09:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-defi-trading-is-evolving-after-a-whirlwind-2020\/"},"modified":"2020-12-30T12:05:00","modified_gmt":"2020-12-30T09:05:00","slug":"how-defi-trading-is-evolving-after-a-whirlwind-2020","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-defi-trading-is-evolving-after-a-whirlwind-2020\/","title":{"rendered":"# How DeFi trading is evolving after a whirlwind 2020"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a287e723d5cb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a287e723d5cb\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-defi-trading-is-evolving-after-a-whirlwind-2020\/#Realizing_long-term_benefits\" >Realizing long-term benefits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/how-defi-trading-is-evolving-after-a-whirlwind-2020\/#Moving_away_from_farming_and_mining\" >Moving away from farming and mining<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># How DeFi trading is evolving after a whirlwind 2020 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>\n<p dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/iob.fi\/\"><img loading=\"lazy\" decoding=\"async\" width=\"1480\" height=\"200\" alt=\"\" src=\"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/f7b81a84d1d36ea204390c93dc33e0c1.jpg\"><\/a><\/p>\n<p dir=\"ltr\">When the history books are written about cryptocurrency, 2020 will be remembered as the year decentralized finance exploded in popularity.<\/p>\n<p dir=\"ltr\">A powerful illustration of how this young, often misunderstood space has grown comes from\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defipulse.com\/\">DeFi Pulse<\/a>. At the start of January, the total value locked in DeFi protocols stood at $675 million. Since then, records have continued to be smashed \u2014 and at one point in December, this figure hit a staggering $15 billion. That\u2019s a surge of 2,100% in less than 12 months.<\/p>\n<p dir=\"ltr\">Even though there have been\u00a0signs of a bubble, crypto heavyweights such as Binance CEO Changpeng Zhao have said that they expect DeFi is here to stay \u2014 and that there\u2019s \u201ca lot of growth potential\u201d in this burgeoning space.<\/p>\n<p dir=\"ltr\">Nonetheless, critics argue that DeFi needs to evolve and mature as we head into 2021. This year has also been dominated by endless forks \u2014 and a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of projects emerging with near-identical (and often food-related) names. There\u2019s been a lack of sustainability as traders flock from one protocol to another in search of the healthiest returns, and the sudden creation of new platforms by opportunistic developers has led to devastating security vulnerabilities that have sometimes caused tens of millions of dollars to vanish into thin air.<\/p>\n<p dir=\"ltr\">Indeed, Cointelegraph recently reported on\u00a0new research by the data company BraveNewCoin, which warned there are 18 serious \u201cnon-financial\u201d risks in the DeFi sector. Scalability dominated this list \u2014 with network congestion resulting in high gas fees and failed transactions, causing protocols to malfunction.<\/p>\n<p dir=\"ltr\">The dangers don\u2019t end here. Smart contract vulnerabilities can be exploited through flash loans, oracles can cause protocols to receive inaccurate price data, inter-connectedness can mean many protocols need to rely on others to function, and there\u2019s a risk of centralization creeping into the industry too.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Realizing_long-term_benefits\"><\/span>Realizing long-term benefits<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">It\u2019s worth noting that many critics are enthusiastic about how DeFi can deliver secure, robust and permissionless transactions in a way that centralized platforms simply cannot match. However, their argument is that DeFi is underdeveloped in its current form \u2014 meaning that the infrastructure required to deliver true change just isn\u2019t ready yet.<\/p>\n<p dir=\"ltr\">Parallels have been drawn with the stock market in the 1980s and 1990s, when orders were called in by phone and traders were left uncertain about the precise time they would be executed \u2014 and how much it would end up costing.<\/p>\n<p dir=\"ltr\">In some cases, DeFi protocols have been compared to a manufacturer of a cutting-edge electric vehicle who boasts about how sophisticated their battery <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> is\u2026 without paying attention to the tires.<\/p>\n<p dir=\"ltr\">For the industry to evolve, advocates say that a solid bridge is needed to connect DeFi with the traditional financial world \u2014 helping it to evolve beyond an experimental playground. This would deliver the technological robustness that\u2019s needed to avoid devastating exploits, encourage greater involvement in the space, and result in the infrastructure that\u2019s needed for large transactions to take place securely, cheaply and im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely with little to no slippage.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Moving_away_from_farming_and_mining\"><\/span>Moving away from farming and mining<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">New entrants into the market such as\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/iob.fi\/\">iob.fi<\/a> DAO believe that, in the not-too-distant future, the discussion surrounding DeFi will move away from mining, farming and flash loans to \u201creal, sustainable and consistent returns.\u201d<\/p>\n<p dir=\"ltr\">The platform describes itself as the first tokenized, actively managed DeFi hedged pools \u2014 an environment where traders can gain exposure to cryptocurrencies, stocks, commodities and indices in one place\u2026 all from a Web3 wallet.<\/p>\n<p dir=\"ltr\">According to iob.fi DAO, this can deliver advantages because most asset classes have different price cycles. Whereas Bitcoin may be in the ascendancy one week, it may trade sideways the following week as Wall Street embarks on its bull run.<\/p>\n<p dir=\"ltr\">Iob.fi DAO says it is establishing a bridge between professional Wall Street firms and crypto through Prodefy \u2014 a suite of tools that is set to connect traditional high-performance trading systems with Web3-enabled DeFi platforms in 2021. The use of Web3 is described as crucial because of how it is future proof and can be easily upgraded as better technologies become available.<\/p>\n<p dir=\"ltr\">Iob.fi DAO says that Prodefy will be crucial to achieving adoption because traders in the City won\u2019t need to significantly modify their trading systems or create a new one. This will break down barriers between the two markets \u2014 at a time when institutional interest in cryptocurrencies is continuing to grow, and a number of companies are buying tens of thousands of Bitcoin to hold in reserve.<\/p>\n<p dir=\"ltr\">An advanced automated trading system has also been developed called ioBots \u2014 a collection of tools that takes a different <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach to asset management, trading decisions and risk management in light of crypto\u2019s on-chain nature.<\/p>\n<p dir=\"ltr\">Overall, iob.fi DAO says that its goal is to deliver consistency \u2014 describing it as the most important ingredient in successful trading.<\/p>\n<div style=\"background-color: #f0f0f0; padding: 8px 21px; font-weight: bold; color:#253137;\">Learn more about <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/iob.fi\/\" style=\"color: #253137\">iob.fi<\/a><\/div>\n<div id=\"post-content\"><span style=\"font-size: 12px; color: rgb(169, 169, 169);\"><span style=\"font-weight: 600\">Disclaimer.<\/span> Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice. <\/span><\/p>\n<\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/how-defi-trading-is-evolving-after-a-whirlwind-2020\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# How DeFi trading is evolving after a whirlwind 2020 &#8221; When the history books are written about cryptocurrency, 2020 will be remembered as the year decentralized finance exploded in popularity. A powerful illustration of how this young, often misunderstood space has grown comes from\u00a0DeFi Pulse. At the start of January, the total value locked&#8230;<\/p>\n","protected":false},"author":1,"featured_media":144079,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/c21b2c7b035de317eea0d7ac860f1455.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75014,74894,74863,75186,74868,73785,71407],"class_list":["post-144078","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-binance","tag-blockchain","tag-cryptocurrencies","tag-dao","tag-defi","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/144078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=144078"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/144078\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/144079"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=144078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=144078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=144078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}