3 DeFi trends on the watch

One of the most promising crypto sectors is decentralized finance, a whole ecosystem in itself which has its own DeFi trends. Just knowing about DeFi is not enough to get you in on the ground floor of what’s coming because there are too many things coming! Here are the sub-trends within DeFi you should have your eyes on this year.

DAOs

If you don’t know what a DAO (decentralized autonomous organization) is, you’re missing out. NFTs may have been the last huge crypto trend, but DAOs hope to be the next — and everyone is creating one. DAOs are not just decentrally-managed and operated organizations with community guided decision-making through voting. They’re venture capital alternatives, communities, project developers, and businesses.

From buying a sports team, to buying the constitution or a fast food franchise, this is the incubation age of DAOs. It’s the time to try anything and everything to see what works best. There is a lot that can be said and understood about DAOs. But as a starting point, knowing they’re on the rise and you should have them on your radar is a jump on most everyone else looking for crypto opportunities.

New lending options

Part of the reason DeFi sprung up in the first place was because of P2P lending and borrowing and the high yields they can generate. DEXs, liquidity pools, yield farming, and other kinds of lending and borrowing really got everyone’s attention with their wild returns. Now these DeFi trends are continuing as lending and borrowing evolves.

There are new projects and applications being developed all the time to improve and innovate how P2P lending can be automated with smart contracts. There are self-paying loans, liquid staking, and new ways to use stablecoins and tokens. DeFi is still pretty new so it’s moving fast. Just because you used PancakeSwap back in the day doesn’t mean you’re automatically caught up on everything else coming at us fast in the lending space.

GameFi

Everything digital is colliding as we merge business, social life, financial services, art, gaming, and pretty much everything else into one giant, online mega-game. The gamification of everything is something we’ve been seeing happen in every industry and DeFi is no exception. Combining play-to-earn and DeFi to incentivize participation is one of the hottest DeFi trends to watch.

Especially in smaller economies with less industry, even small game rewards can be accessible and life-changing for lower economic classes. Add in an opportunity to lend or stake, and you’ve got a huge potential for a huge market. That’s GameFi.

DeFi trends wrap-up

It would be impossible to see every trend coming before it blows up. Luckily, you don’t have to. There are enough promising and game-changing things happening in DeFi that really all you have to do is dive in and start participating. Start using dApps and platforms, gaming, and joining DAOs, and putting your crypto to work getting those high yields. You’ll be on the front end of the DeFi tidal that’s about to smash over the top of traditional finance