Defi More Scalable Than Traditional Finance, New Study Says

Bitcoin.comPublished on 2022-12-22Last updated on 2022-12-22

Abstract

Despite the market conditions that prevailed in much of 2022, decentralized finance (defi) still demonstrated its greater scaling potential than that of the traditional financial industry, a new report has said. Even though the total value locked dropped from the peak of $180 billion in Dec. 2021, to just over $50 billion by end of Oct. 2022, certain sectors of the defi market still “show a very optimistic trend.”

Decline in Total Value Locked

According to Hashkey Capital’s end-of-year report, decentralized finance (defi) has the “potential to be many times more scalable than the traditional financial industry.” In addition to the scaling potential, defi protocols are resilient and are likely to emerge from black swan events such as the Terra luna/UST collapse unscathed, the report suggested.

However, in the report titled Defi Ecosystem Landscape Report, Hashkey Capital — an end-to-end digital asset financial services group — acknowledged that unfavorable market conditions that largely prevailed in 2022 had contributed to the decline in the value of total assets under management.

“The decline of the TVL – Total Value Locked (a proxy for total assets under management in Defi) – was also motivated by the general market conditions. Lower crypto prices (due to generally unfavourable macro) mean that the value of the collaterals provided in Defi lending is also lower, reducing the motivation to get a loan against those collaterals. DEX [decentralized exchange] activity and crypto trading volumes are also lower,” the report said.

As shown by the report’s data, the TVL, which peaked at $180 billion in Dec. 2021, dropped from just under the $150 billion seen around May 2022, to just over $50 billion in late October. Despite this TVL decline, according to the report, certain sectors of the defi market still “show a very optimistic trend.”

Defi Growth Slowdown

Concerning the extent of adoption, the report acknowledges that there has been a slowdown in the growth rate in 2022 (31%) when compared to 2021 (545%). Remarking on this outcome, as well as the rise in number of wallets to over 5 million, the report said:

“2022 can be seen as a year of consolidation where most projects are busy building and improving their products rather than spending their resources on marketing activities. 2022 is also the year when the UI and user experience of Defi protocols improved significantly, to a level that we can finally say that it’s easier to use some Defi protocols than using a home banking app.”

According to the report, a large chunk of support for Defi protocols came from venture capital (VC) firms which poured “$14 billion into 725 crypto projects (many of those are Defi)” in the first half of 2022.

On the likely trigger of the next defi summer, the report points to the derivatives and options sector where key platforms like GMX saw a “substantial growth in the number of users and TVL.” From the TVL of $108 million at the start of 2022, GMX saw this value grow to $480 million by the end of October. Another platform, Dydx, which saw the price of its token drop by 90% in one year, “earned over $50 million in revenue and continues to have over 1000 weekly active users.”

Trending Cryptos

CitreaCTR

wrapped stUSDTWSTUSDT

Velodrome FinanceVELODROME

BrevisBREV

ZRX（0X）ZRX

PancakeSwapCAKE

EF's Epic Reorganization: 20% Layoffs, Budget Halved, Is Ethereum Gearing Up for a Leaner Future?

The Ethereum Foundation (EF) has announced a major organizational restructuring, involving a 20% staff reduction (approx. 54 employees) and a division into functional clusters like Protocol, Access, User, Community, and Institutional layers. Co-founder Vitalik Buterin further revealed plans to cut the EF's budget by around 40% over the coming years, aiming to reduce its annual spending rate from about 15% to roughly 5% by 2030, transitioning to an endowment-driven model. This overhaul is seen as a long-overdue correction to the EF's ambiguous role. As Ethereum grew, the foundation faced persistent criticism over ETH sales, perceived lack of execution, and unclear strategy, often becoming a focal point for community frustration amid ETH's price stagnation. The reform aims to redefine the EF's boundaries, narrowing its focus to core protocol research, public goods funding, and ecosystem coordination, while offloading more applied development work to the broader market. Concurrently, ecosystem forces like the newly formed Ethlabs (founded by ex-EF researchers) and other independent groups are stepping in to fill the space, signaling a shift from a centralized model to a more distributed, collaborative ecosystem structure. The move was notably praised by Solana co-founder toly, who viewed a "leaner" EF as potentially more decisive and agile.

Odaily星球日报17m ago

EF's Epic Reorganization: 20% Layoffs, Budget Halved, Is Ethereum Gearing Up for a Leaner Future?

Odaily星球日报17m ago

Dragonfly Partner Haseeb: The Fastest-Growing Companies of the Future May All Get Stuck at 149 Employees

Dragonfly partner Haseeb explores the distorted economics of AI model pricing, drawing parallels to tax policy. He notes that startups and small teams (under 150 users) enjoy heavily subsidized, fixed-price AI subscriptions (like Claude Code), where the marginal cost of an additional token is effectively zero. This creates a powerful incentive for them to maximize token usage ("token-maxxing") and innovate aggressively with AI automation. In contrast, large enterprises (over 150 users) are forced onto "Enterprise" plans, paying per-token API fees with high (~75%) markups. This acts like a steep "tax" on AI-powered labor, disincentivizing marginal automation and experimental use, and encouraging them to retain more human workers. Haseeb argues this pricing creates a "150-person cliff," a regulatory notch similar to labor laws in France that discourage firms from growing past 50 employees. He predicts the fastest-growing future companies may deliberately cap their headcount at 149 to avoid the punitive enterprise pricing. This would foster an "AI-first" management philosophy obsessed with automation and outsourcing to stay lean. While not intentionally designed, this bifurcated pricing could become one of the most influential de facto tax policies, shaping how AI replaces labor—not through mass layoffs at big firms, but through agile, AI-native startups outcompeting them.

marsbit29m ago

Dragonfly Partner Haseeb: The Fastest-Growing Companies of the Future May All Get Stuck at 149 Employees

marsbit29m ago

How xBubble Breaks Through in the VC-Heavily-Backed OPC Economy

xBubble: Addressing the Structural Gap in the VC-Backed OPC Economy The concept of OPC (One Person Company) is evolving from a buzzword to a significant AI-driven market. While AI coding tools like Replit and Lovable have validated demand from non-technical users wanting to build applications, a key gap remains: the leap from creating a demo to running a stable, evolving business. These tools still require users to manage the development process, including technical judgments for integrations, modifications, and deployments—a major hurdle for OPCs. xBubble, by DAPPOS, tackles this by shifting from "Prompt-to-Code" to "SOP-to-Business." Instead of generating code from instructions, its core is a system of pre-organized SOPs (Standard Operating Procedures) that translate business goals—like "sell World Cup merchandise"—into complete, executable workflows. This includes generating cohesive assets, pages, payment systems, and backend logic. The platform is augmented by a network of third-party service providers who handle infrastructure (hosting, domains, payment setup), acting like "on-site service engineers." Users can pay for these services directly with xBubble credits, simplifying onboarding. This ecosystem aims to deliver not just an app, but a complete, modifiable business launch path. xBubble targets a clear OPC segment: small commercial nodes (e.g., creators, merchants) with existing products, customers, or channels, but for whom a full tech team is unjustifiable. Its potential lies in SOPs accumulating expertise from real cases, improving reliability and reducing delivery costs over time. Additionally, its native support for crypto payments caters to global or digital-native OPCs. In summary, as AI democratizes software creation, xBubble's opportunity is to prove that "SOP-to-Business" provides more immediate value for launching a real, operational business than a powerful but unstructured AI coding tool.

链捕手32m ago

How xBubble Breaks Through in the VC-Heavily-Backed OPC Economy

链捕手32m ago

Dragonfly Partner Haseeb: Why the Fastest-Growing Companies of the Future May All Stagnate at 149 Employees

Dragonfly partner Haseeb analyzes AI service pricing, particularly Anthropic's model, as a form of "tax policy" on AI labor. He observes a stark contrast: small companies (under ~150 users) benefit from low or zero marginal cost via flat-rate subscriptions, incentivizing them to maximize AI usage ("tokenmaxxing"). In contrast, large enterprises pay per-token API costs with high (e.g., 75%) markups, creating a disincentive for experimental or marginal automation. This pricing cliff at 150 users acts like a regulatory notch, potentially causing the fastest-growing AI-native companies to artificially cap their headcount to retain subsidized rates. Consequently, large-scale direct AI-for-human substitution within big corporations may not happen as expected; instead, job displacement may occur indirectly as lean, AI-heavy startups outcompete and erode their market share. The article concludes that token pricing, though not designed as such, functions as a powerful de facto tax policy shaping company structure and automation incentives.

链捕手38m ago

Dragonfly Partner Haseeb: Why the Fastest-Growing Companies of the Future May All Stagnate at 149 Employees

链捕手38m ago

If It's Not a Clear Yes, It's a No: A Nine-Year Retrospective by a VC Who Survived Four Cycles

**"Invest Only When Certain": A Nine-Year Retrospective from a VC Across Four Cycles** IOSG founder Jocy shares hard-earned lessons from nine years and over a hundred investments in Web3. The core challenge isn't identifying successful founders, but understanding why talented founders with solid ideas still fail. Through building a "failed founder database," IOSG identified six recurring failure patterns. **Founder Trait Red Flags:** 1. **Emotionally Unstable:** Founders who react defensively to criticism or publicly lash out under pressure (e.g., 80% drawdowns) often fail. Resilience is key. 2. **Lacking Hunger / Having a Fallback:** Founders with significant safety nets (family wealth, cushy fallback jobs) may lack the "do-or-die" commitment needed to survive crypto's brutal cycles. 3. **Unchecked Ego:** Includes "polished execution machines" who excel in known frameworks but struggle when paradigms shift, and "professor-types" who are technically brilliant but resistant to commercial feedback or coaching. **Project Structure Red Flags:** 4. **Token-First, Not Product-First:** Treating the token solely as a fundraising tool with no real utility or connection to product value is a major warning sign. The project should have value even if the token goes to zero. 5. **No Day-1 Exit Thesis:** Founders must have a clear, staged capital strategy from the start, understanding what each funding round needs to prove to unlock the next. "Exit before entry" is crucial. 6. **No Full-Cycle Experience:** Founders who haven't lived through a complete crypto bull/bear cycle (e.g., 2018, 2022) often underestimate their vulnerability. IOSG limits initial checks for such teams to $250k, sizing for risk. **The Positive Flipside: Desirable Founder Traits** The ideal candidate exhibits: obsessive problem-depth, being a second-time founder with a non-consensus vision, strong communication skills with *controlled* ego, relentless perseverance, and a global perspective with agency and taste (increasingly vital in the AI era). **Three Survival Tips for Founders:** 1. **Cash Flow Over Narrative:** Real revenue is what sustains projects, not vanity metrics. 2. **Tokens Are a Liability:** Avoid issuing a token unless absolutely necessary. The hidden costs (market making, liquidity, compliance) are immense, often a multi-million-dollar burden. 3. **Respect Liquidity:** Sell during peaks to build treasury, buy back to support the protocol during troughs. Be realistic about valuations and your ability to deliver for the next round. The final principle is simple yet paramount: **"If it's a borderline 'yes' or 'no,' don't invest."** In an industry that reinvents itself every few years, the discipline to consistently say "no" is the ultimate secret to longevity.

Foresight News57m ago

If It's Not a Clear Yes, It's a No: A Nine-Year Retrospective by a VC Who Survived Four Cycles

Foresight News57m ago

Trading

Spot

Futures

Hot Articles

How to Buy LUNA

Welcome to HTX.com! We've made purchasing Terra (LUNA) simple and convenient. Follow our step-by-step guide to embark on your crypto journey.Step 1: Create Your HTX AccountUse your email or phone number to sign up for a free account on HTX. Experience a hassle-free registration journey and unlock all features.Get My AccountStep 2: Go to Buy Crypto and Choose Your Payment MethodCredit/Debit Card: Use your Visa or Mastercard to buy Terra (LUNA) instantly.Balance: Use funds from your HTX account balance to trade seamlessly.Third Parties: We've added popular payment methods such as Google Pay and Apple Pay to enhance convenience.P2P: Trade directly with other users on HTX.Over-the-Counter (OTC): We offer tailor-made services and competitive exchange rates for traders.Step 3: Store Your Terra (LUNA)After purchasing your Terra (LUNA), store it in your HTX account. Alternatively, you can send it elsewhere via blockchain transfer or use it to trade other cryptocurrencies.Step 4: Trade Terra (LUNA)Easily trade Terra (LUNA) on HTX's spot market. Simply access your account, select your trading pair, execute your trades, and monitor in real-time. We offer a user-friendly experience for both beginners and seasoned traders.

4.5k Total ViewsPublished 2024.03.29Updated 2026.06.02

What is $LUNA

Luna28 ($$LUNA): A Moon-Inspired Crypto Venture Introduction In the ever-evolving world of cryptocurrencies, innovation is key. Luna28 stands out as a project that not only embraces technology but also intertwines it with the mystique of cosmic cycles. Inspired by the moon's 28-day cycle, Luna28 ($$LUNA) aims to create a unique and engaging experience for its community, merging the concepts of tokenomics and lunar-themed non-fungible tokens (NFTs). At its core, this project employs a distinctive token burn mechanism aligned with lunar and solar eclipses, setting a new precedent in the crypto space. What is Luna28? Luna28 is a token-based cryptocurrency project built on the Ethereum blockchain. It seeks to offer its users a blend of cosmic engagement through a series of innovative features. Key to its identity is the launch of lunar-themed NFTs which enhance community interaction while celebrating the moon's cultural significance. The project aims to create a deeper connection between its community members and the cosmos. This connection is facilitated through a carefully crafted ecosystem that leverages lunar themes, token burns, and dynamic activities associated with celestial events. The goal is not just about enhancing token value but fostering a sense of belonging and enjoyment within the community. Creator of Luna28 The details surrounding the creator of Luna28 remain largely unknown. This lack of information has led to an air of mystery around the project, further adding to its uniqueness. The anonymous nature of its creation reflects a broader trend within the crypto industry, where the focus is often on the project and its community rather than individual profiles. Investors of Luna28 Currently, there is no publicly available information regarding the specific investment foundations or organizations that support Luna28. This aspect may indicate a grassroots initiative where the community plays a vital role in the project's development and growth. The absence of prominent investors can sometimes create a more decentralized and independent project, allowing for organic community engagement and involvement. How Does Luna28 Work? One of the most compelling aspects of Luna28 is how it operates, particularly its unique features that set it apart from other cryptocurrency projects. 1. Lunar and Solar Eclipse Token Burns Luna28 incorporates a special token burn mechanism, which involves periodically burning a portion of its token supply during lunar and solar eclipses. This approach not only creates excitement around celestial events but also works on the fundamental principle of increasing scarcity. By reducing the overall token supply through burns, the remaining tokens have the potential for increased value, benefiting all holders. 2. Tokenomics The economic structure of Luna28 is crafted to ensure sustainability and growth. Each transaction incurs a 4.4% tax: 2% contributes to the Moon Cycle Fund, which is burned every 28 days during the full moon. The remaining 2.4% is earmarked for development and marketing, facilitating the project’s expansion and continuous improvement. This tax structure establishes a steady flow of funding while maintaining a deflationary approach that can enhance the token's value proposition. 3. 100% Burned Liquidity Security and trust are paramount in any cryptocurrency project. Luna28 addresses these concerns by locking its liquidity pool tokens in a burn wallet. This ensures that liquidity is permanently secured, fostering confidence within the community as they engage with the platform. 4. NFT Drops Further enhancing community engagement, Luna28 plans to release lunar-themed NFTs. These digital collectibles not only serve as a source of fun and creativity but also offer users unique assets tied to the larger lunar theme. The introduction of NFTs reflects a growing trend in the crypto space, blending traditional forms of artistic expression with innovative technology. 5. Hyper Deflationary Token Luna28 is classified as a hyper deflationary token, emphasizing its commitment to a declining token supply through systematic burns. This design encourages long-term holding, as community members anticipate potential value growth driven by scarcity. 6. First Buyer Incentive In a bid to promote active participation, Luna28 offers a unique first buyer incentive. After each celestial burn event, the first participant in the market is rewarded with 10% of the tokens burned during that event. This encourages immediate engagement and interest surrounding each significant celestial phenomenon. 7. Sustainable Tax Structure The project's tax model is specifically designed to encourage sustainable growth, balancing the need for ongoing project development with the goal of enhancing token value. This innovative tax structure serves the dual purpose of supporting the community's interests while maintaining a healthy ecosystem for the project. Timeline of Luna28 A well-charted timeline helps in understanding the progression and milestones of Luna28. Here’s a synopsis of important events in the project’s history: Stealth Launch: The project entered the crypto arena under a stealth launch, garnering significant community interest and posting a remarkable 1792% increase from its initial listing. This initial surge indicated strong community reception and a solid foundation for future growth. Token Burns: Committing to its unique approach, Luna28 plans to burn 28% of its token supply over a three-year period, timed specifically during lunar and solar eclipses. Community members eagerly await their opportunities to participate in these events. Community Involvement: Emphasizing transparency and the importance of community feedback, Luna28 plans to notify its users in advance about upcoming token burn events. This engagement approach encourages active participation, fostering a strong sense of community. Key Features Luna28's distinctive features bolster its appeal within the cryptocurrency sector: Hyper Deflationary Nature: The project's focus on hyper deflationary mechanics enables a strategic reduction in supply, aiming for enhanced value retention. Incentives for Early Engagement: The project rewards early participants with direct benefits, which cultivates a proactive community eager to contribute. Commitment to Community Development: The sustainable tax model not only ensures the project's growth but also actively involves the community in shaping its future direction. Conclusion Luna28 represents a unique fusion of technology, community engagement, and celestial inspiration in the cryptocurrency landscape. By integrating innovative mechanisms such as token burns during astrological events and creating engaging lunar-themed NFTs, the project distinguishes itself as a trailblazer within its niche. As a community-driven endeavor, Luna28 promises to deliver not just another cryptocurrency but an experience that marries elements of cosmic fascination with blockchain technology. With its innovative features and strong emphasis on community involvement, Luna28 has the potential to create a lasting impact in the world of digital currencies. The connection it forges between its users and the universe represents not only a creative endeavor but also a brilliantly calculated business strategy poised for growth. As we observe the evolution of Luna28, it is evident that it is more than just a token; it is a concept that encourages its community to look up at the cosmos and ponder their place within it, all while navigating the exciting world of cryptocurrency. The future for Luna28 looks bright and full of potential, eagerly awaiting its next lunar cycle.

827 Total ViewsPublished 2024.04.01Updated 2024.12.03

What is TERRA

Exploring the Terra Ecosystem: A Comprehensive Overview Introduction In the ever-evolving landscape of blockchain technology and cryptocurrency, the Terra Ecosystem has emerged as an ambitious project designed to facilitate a decentralized financial system. This innovative platform focuses on creating stable and scalable algorithmic stablecoins, aimed at driving the widespread adoption of cryptocurrencies. In this article, we will delve into the foundational aspects of the Terra Ecosystem, exploring its operational mechanisms, its creators, investors, notable components, and the timeline of its development. What is the Terra Ecosystem? Founded in 2018, the Terra Ecosystem is a layer-one blockchain designed to provide an efficient and reliable payment platform. The core mission of Terra is to create a preferred form of money that is not only decentralized but also practical for everyday use. At the heart of the ecosystem is its native algorithmic stablecoin, TerraUSD (UST), which is pegged to the US dollar using an innovative algorithmic mechanism. This unique approach addresses a common concern in the cryptocurrency space: the volatility that often accompanies digital assets. The Terra Ecosystem aims to enhance the usability of cryptocurrencies by creating an environment where digital currencies function similarly to traditional currencies. By being user-friendly and stable, Terra sets out to attract users outside of the crypto community, ultimately fostering mass adoption. The Creators of the Terra Ecosystem The Terra Ecosystem emerged under the guidance of its co-founders Daniel Shin and Do Kwon. Both individuals, with a wealth of experience in entrepreneurship and technology, launched Terraform Labs to spearhead this groundbreaking project. Daniel Shin, a prominent figure in the South Korean tech landscape, has co-founded multiple tech companies, while Do Kwon has an extensive background in computer science and engineering. Their partnership is pivotal in steering the development and growth trajectory of the Terra Ecosystem. Investors in the Terra Ecosystem While detailed information about specific investors remains limited, it is widely acknowledged that Terraform Labs has garnered substantial financial support from a variety of angel investors and venture capital firms. This backing provides the necessary resources for the ongoing development and expansion of the Terra Ecosystem. The emphasis on acquiring diversified investment sources reflects the strong belief in the project's potential within the cryptocurrency community. How Does the Terra Ecosystem Work? At the core of the Terra Ecosystem's functionality lies its innovative proof-of-stake (PoS) consensus mechanism. This allows holders of the LUNA token, the native currency of the ecosystem, to participate in the governance and operation of the network. The dual-token structure differentiates Terra from many other projects, with LUNA serving both as a stake for validators and as a governance token. The mechanism operates in a distinctive way, whereby the supply of LUNA backs the stablecoin UST. If the demand for UST increases, the algorithm automatically adjusts the supply of LUNA to maintain the stability of UST at its dollar peg. Users are enabled to exchange 1 UST for an equivalent value in LUNA, ensuring that fluctuations in demand do not affect the peg. This innovative approach enables the Terra Ecosystem to maintain price stability, one of its primary goals. Timeline of the Terra Ecosystem The development journey of the Terra Ecosystem has been marked by significant milestones: 2018: Establishment of Terraform Labs by Daniel Shin and Do Kwon, laying the groundwork for the Terra Ecosystem. April 2019: The initial release of the Terra blockchain, initiating its journey into the broader cryptocurrency landscape. 2021: Terra experiences remarkable growth as its total value locked (TVL) reaches new heights, positioning it as a dominant player in decentralized finance (DeFi). May 2022: A turbulent period arises as the Terra blockchain is temporarily halted following the collapse of UST and LUNA, leading to a significant impact on market perception and capitalization. January 2024: Terraform Labs files for bankruptcy, marking another critical event in the project's history, sparking discussions on the sustainability and future of the ecosystem. Key Components of the Terra Ecosystem A variety of features contribute to the unique functionality of the Terra Ecosystem: Core Functionality The Terra Ecosystem includes essential functionalities such as managing transaction fees, monitoring price fluctuations, and maintaining historical balances of transactions, all of which are crucial for ensuring user experience and operational integrity. Applications One of the flagship features of the Terra Ecosystem is its diverse array of applications. This includes: Anchor Protocol: A money market protocol that provides high stablecoin yields and tokenized stakes for users seeking to maximize returns on their investments. Mirroring Technology: Enabling users to create assets that mirror real-world assets and trades, allowing for broader use cases and applications. Chai: A payment platform designed to facilitate everyday transactions using Terra's stablecoin technology. Swaps and Exchanges The ecosystem provides functionality for seamless asset exchanges. Notable features include native swapping capabilities and platforms such as Terraswap, allowing users to exchange Terra assets efficiently while benefiting from competitive rates. Governance Governance plays a critical role in the decentralized nature of the Terra Ecosystem. Token holders use their LUNA tokens to propose changes or vote on proposals that affect the network, ensuring collective decision-making and community involvement in the ecosystem's evolution. Notable Projects in the Terra Ecosystem Beyond the core functionalities, the Terra Ecosystem is also home to notable projects that further augment its capabilities: Terraswap: This decentralized exchange (DEX) emerged to facilitate easy swapping of Terra assets, thus promoting a vibrant trading environment within the ecosystem. Astroport: Another DEX known for its high total value locked, Astroport enhances trading opportunities and liquidity provision for users. Loop Markets: This integrated exchange hub offers users a range of trading tools and services, significantly contributing to the user experience across the Terra platform. Conclusion The Terra Ecosystem stands as a significant player within the blockchain and cryptocurrency domains, aiming to create a stable and scalable financial platform designed for widespread cryptocurrency adoption. Although the ecosystem faced dramatic challenges, notably the collapse of its stablecoin UST and the LUNA token, it continues to adapt and evolve in the face of adversity. As the project navigates its future, it remains committed to its foundational vision of building practical products accessible to a broader audience, thereby reinforcing the potential of decentralized finance. The Terra Ecosystem, with its robust features and innovative approach, holds promise as it seeks to redefine the landscape of digital currency use, remaining a focal point for enthusiasts and investors alike in the ongoing evolution of blockchain technology.

1.3k Total ViewsPublished 2024.12.17Updated 2024.12.17

Discussions

Welcome to the HTX Community. Here, you can stay informed about the latest platform developments and gain access to professional market insights. Users' opinions on the price of LUNA (LUNA) are presented below.