A discussion with Curve founder Michael Egorov on the underestimated potential of decentralized finance （DeFi） and its ongoing innovations.
Points
- Michael Egorov believes DeFi holds significant, unrecognized potential.
- Examples of ongoing DeFi innovation include Pendle and Ethena.
- The future of DeFi includes greater integration of Real World Assets （RWAs）.
- Decentralized technology can address vulnerabilities of traditional web2 systems.
In an exclusive interview with crypto.news, Curve founder Michael Egorov argued that the DeFi ecosystem still holds the biggest value proposition over speculative trends like memecoins. During the 2021 peak, sometimes called “crypto summer,” decentralized finance took the driving seat, with DeFi tokens surging to all-time highs. The narrative revolved around the “future of finance” thesis, yet current market sentiment often overlooks ongoing innovations in DeFi.
Egorov highlighted projects like Pendle, which deals with interest rate markets, and Ethena, a stablecoin leveraging shorts and Ethereum staking, as examples of the continuous innovation within the DeFi space. He emphasized that the market has not fully recognized these advancements.
RWAs on DeFi Chains
Egorov remarked that the situation may improve significantly when Real World Assets （RWAs） are not just created on-chain but also arbitraged with real markets. This would enable RWAs to be used in more permissionless products, expanding their integration within the DeFi ecosystem. According to Standard Chartered, the RWA tokenization market could reach $30 trillion by 2034, compared to the current $13.2 billion, representing enormous growth potential.
https://twitter.com/DefiIgnas/status/1816806263491084757
Solving Web2 Loopholes and TON Opportunity
Decentralized technology can solve many vulnerabilities of traditional web2 systems. Egorov suggested that the industry must pivot toward more on-chain solutions for hosting services. A significant breakthrough would be the native support of Ethereum Name Service （ENS） and similar decentralized DNS services by major browsers. Decentralized hosting could eliminate most of the web2 issues by providing enhanced security and resilience against centralized failures.
Egorov also sees potential for DeFi applications to gain traction in the TON （The Open Network） ecosystem, anticipating a full launch soon. He declined to comment on his infamous CRV loan and its eventual liquidation but remained optimistic about the future of DeFi.
Conclusion
Michael Egorov’s insights highlight the ongoing innovation within DeFi that the market may not fully appreciate. Projects like Pendle and Ethena exemplify how DeFi continues to evolve, integrating RWAs and addressing web2 vulnerabilities. The future of DeFi looks promising as it aims for greater adoption and recognition.
解説
- Michael Egorov’s perspective emphasizes that DeFi is still a highly innovative sector with significant potential yet to be fully recognized by the market.
- Real World Assets （RWAs） represent a massive growth area for DeFi, potentially reaching $30 trillion by 2034, vastly expanding the scope and application of decentralized finance.
- Decentralized solutions can effectively address web2 vulnerabilities, making the internet more secure and resilient.
- The TON ecosystem presents new opportunities for DeFi applications, enhancing their reach and impact.
- Egorov’s comments encourage investors to look beyond current market trends and consider the long-term innovations and applications of DeFi.