After the enthusiasm for liquidity mining subsided, more and more people began to look for opportunities in the second half of DeFi.
At the same time, Kava, which is oriented to cross-chain DeFi applications, recently released Harvest, the world's first cross-chain currency market, and realized:
Liquidity Supply (Supply) - securely deposit digital assets on Harvest and earn interest.
Borrow - Mortgage your digital assets to lend to others on the Harvest platform.
Earn through mining (Earn) - both depositors and borrowers can earn HARD, the governance token of Harvest.
Can this innovation of Kava bring new vitality to DeFi? Will the development of DeFi help the popularization of cryptocurrency? What kind of changes will the traditional financial industry face?
On October 29, Aaron Choi, Kava's vice president of global business development, was a guest chain node AMA and had a wonderful discussion with community users.
Kava: Governance voting decides everything
Aaron Choi said that as a DeFi Hub, Kava puts user experience and security first.
"All applications on Kava's chain need to pass governance votes to go online. You can compare the application ecology of Apple and Android. Apple's needs to be reviewed, and Android is open. Approval can improve the quality of applications. The applications on Kava are Through governance voting, the quality and security will be much higher than other chains.”
In addition, Kava is opening up opportunities for more mainstream assets to enter the DeFi market. Aaron Choi believes that strong and timely governance can allow Kava applications to have a more efficient way of dealing with extreme market conditions, thereby avoiding risks-because the biggest problem of DeFi projects is security.
Is DeFi getting cold?
Although DeFi has set off a wave of liquidity mining this year, as market sentiment continues to cool down, many people are beginning to think that DeFi has no story to tell.
But Aaron Choi is very optimistic about the prospects of DeFi and believes that its development is sustainable:
"DeFi is trying to solve the problems of trust and barriers to use in centralized finance, increasing transparency. As the industry develops and matures, DeFi will be the right direction."
He believes that in the future, we can focus on encrypted art and games in the NFT field and decentralized derivatives platforms.
Along with the DeFi trend, there are also some scams and false prosperity. Aaron Choi also gave some tips in AMA to help users identify scams.
"When we pay attention to a blockchain project, we should abandon the confusion of false prosperity, but start from its technical foundation, application core, and implementation plan. Under the stimulation of rewards, users must recognize whether the incentive mechanism of the project party is scientific or not. Reasonable, whether the technology application has undergone a reliable security audit, whether there is a transparent and appropriate third-party supervision logic, and whether there is a real application requirement.”
DeFi VS CeFi, how should we go in the future?
The birth of DeFi is considered a challenger to centralized finance (CeFi). In fact, the development of DeFi will inevitably blend and interact with CeFi. According to Aaron Choi, Kava’s decentralized stablecoin USDX is also born for this:
“We see this as a great entry point to connect with traditional financial market products, as USDX is a high-yield dollar-denominated asset for the modern investor that delivers negligible returns compared to traditional checking and savings accounts etc. It offers yield without additional risk compared to alternatives.”
As for the future development trend of DeFi and CeFi, Aaron Choi believes that the two will converge. Due to the decentralized nature of DeFi itself, more and more CeFi platforms will seek to incorporate DeFi into their business models, as this can help reduce their risk and the risk to regulators.
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