Lately there’s been a lot of talk about #DeFi in the blockchain community. Is #DeFi overhyped? Is there a #DeFiBubble? Here are my thoughts (thread):

All types of Defi tokens are pumping - lending, exchanges, oracles, derivatives etc; exchanges are beating each other to list Defi tokens; and half of my crypto friends were/are $YAM farming..

It definitely feels 2017 all over again.. Or if you’re old enough to have been around that time, 1999! BUT, I do think this time is different.

There’s an obvious macro underpinning for #Defi. With quantitative easing and zero interest rate, there’s an ocean of money looking for yield. As long as Defi can provide such yield, the inflow of capital will be ongoing and non-stop.

As capital flows in, infrastructures are also being built. From what now known as "Defi primitives" to all sorts of capital pools, aggregators and combos of protocols, the innovation has been truly amazing for the last 12 months.

Ten years ago, to become a financial engineer, you’d need to get a Masters degree and get a job on Wall Street for the access to the capital market

Now for this decade, we’re going to see millions of grassroots developers coming from anywhere in the world building new markets and services competing for capital.

This is just the beginning for Defi. I’m mostly excited about the prospects of Defi in Asia, and China in particular - It has one of the most regulated financial markets, most limited investment opportunities, and deepest engineering talent pool.

Ethereum is the pioneer, and so far, the only public blockchain where Defi happens. But it’s facing many issues such as scalability and smart contract security.

At @NervosNetwork , we’re taking a slightly different approach to #Defi with our layered approach and generalized UTXO programming model to tackle those two problems, and building a community.

We’re also going to be part of the movement, to partner with, mobilize and educate the new generation of Defi entrepreneurs. Will be interesting to see what happens in the next few months and years.