jakiro
Author: Jun, Bankless; compiled by Deng Tong, Bitchain Vision
DeFi’s story is extraordinary.
Starting with the early craze of experimentation and speculation, DeFi has now developed into the cornerstone of the crypto ecosystem.
The core of this revolution is the blue chip lending agreement—a pioneer in the DeFi summer.They have faced black swans, proven product market fit, and stable and fixed position in the ecosystem.
Now, they are ready to enter the next phase of growth.We have witnessed these blue chip companies expanding their product range, diversifying their revenue streams, building for the future, while still working on the DAO spirit and Ethereum security.
In this article, we will dive into the latest developments in the DeFi blue chip world.We will look at their strategies, innovations and future ambitions.By understanding their vision, we can get a glimpse of the next wave of growth that has shaped our industry.
Aave
Aave is not a regular lending market, but a cryptocurrency DeFi lending market with a huge TVL of over $11 billion.Everyone in this field may have used it before.How did they do this?By relentlessly solving problems.
People need to borrow and lend cryptocurrencies, and Aave built a great system to do that.
But Aave didn’t stop there.Their DAO is one of the most active DAOs in DeFi, and has just released the vision for Aave 2030.It’s basically a roadmap on how to take advantage of their already dominant technology (Aave V3 and stablecoin GHO) and push it toward dominance in the multi-chain space, and it’s even possible to launch your own chain at some point.
At the heart of Aave’s ambitious plan is the Aave V4.Aave V4 proposes a completely new architecture for this protocol.It can be regarded as a unified layer of liquidity, aiming to make the system more efficient use of capital.It is easier for users, less troubles in governance, more capital flowing – that’s the goal.Aave Labs also plans to introduce a range of automation and risk parameter improvements to ensure the system runs smoothly in bear and bull markets.
Additionally, Aave plans to become a chain neutral through its cross-chain liquidity layer (CCLL).It will allow users to take advantage of liquidity pools on all supported chains on Aave – instant access wherever you go.
Another big bet?Their stablecoin, GHO.They plan to integrate it deeper into V4 and use it as a springboard for bringing real-world assets (RWA) into cryptocurrencies.They are working with Chainlink to achieve this.
Not only that.They are even considering building their own chain Aave network.This will be the ultimate Aave hub to unlock even more insane network effects.Think about GHO’s fees, V4-centric seamless user experience, and widely used account abstractions—all powered by Ethereum’s security.
also,Aave Labs also wants to go beyond Ethereum-based chains (EVMs).They plan to explore non-EVM chains in the coming years.
Given its past record and current trajectory, if all proposed features are implemented, Aave is likely to dominate the DeFi lending market for the next decade.
Sky (former MakerDAO)
Sky is in the midst of transformation, and the driving force behind its ambitious vision for the future, Endgame.Essentially, this multi-year plan aims to transform DAOs into a self-sufficiency DAO network, each DAO joins together to drive the ecosystem forward and establish its stablecoin as the dominant force – while maintaining the healthy governancebalance.
MakerDAO is undergoing a period of massive transformation, all in line with its future vision, Endgame, a comprehensive 5-phase multi-year program designed to build its ecosystem into a self-sustaining DAO network that drives the ecosystem towardand develop its stablecoins into one of the most widely used stablecoins in the ecosystem without sacrificing governance balance.
The first phase of Endgame has just been launched with Sky Protocol.Sky lets users generate USDS, a stablecoin pegged to the USD, for saving or earning income.This is a strategic move to unify the brand, simplify governance and attract new users.Think of it as Maker 2.0 — the core mission is the same, but a new look and with some exciting new features.
A key part of Sky’s rebranding is the comprehensive reform of the token.Governance token MKR becomes SKY, and stablecoin DAI becomes USDS.This is not just a name change; it is intended to enhance decentralization, scalability and user experience.
It also introduced Stars – a dedicated subDAO, responsible for building new features on top of the underlying protocol.Imagine an independent team of contractors working to expand the Sky ecosystem – that’s the concept behind Stars.The first Star to be launched is Spark Protocol, a DeFi lending platform with TVL over $2 billion.
The ending doesn’t end with Sky Protocol and Stars.Stages 3, 4 and 5 are filled with initiatives aimed at simplifying growth, enhancing DAO engagement and opening a new era of DeFi innovation:
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The third stage introduces artificial intelligence into it, and introduces artificial intelligence-driven governance tools to simplify decision-making.
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The fourth stage focuses on incentivizing active participation in governance.Think about the rewards program for participating users – this is the basic idea.
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Phase 5 introduces NewChain, a brand new blockchain designed to enhance Sky’s governance process – paving the way for the full implementation of Endgame’s advanced features and token economics.
also,The Endgame program also includes the inclusion of RWA into the agreement.MakerDAO invested $1 billion in tokenized U.S. Treasury issuances through plans such as Spark Tokenization Grand Prix, which suggests that RWA will continue to be Sky’s main source of revenue.
With Sky’s launch, all these efforts in Endgame’s vision have been launched, and it will be aAn interesting thing.
Compound
Compound is a bit like a reliable old friend of DeFi.It has existed since the early days, silently doing its own thing – allowing people to lend, borrow cryptocurrencies and earn interest.It’s not too eye-catching, nor always eye-catching, but it’s always stable.
Their latest major update, Compound III, was released in 2023.This is not a complete reform; it is more like a streamlined version of their existing products.They focus on simplifying things, eliminating complexity without sacrificing functionality, and providing borrowers with simple, effective tools.
That’s the philosophy of Compound: keep it simple, focus on safety and efficiency, and prioritize the user experience.They don’t move around useful things.In a world full of overdesigned protocols, this is a refreshing approach.
Over the years,They added support for L2 and other popular chains, but they did it in a careful and thoughtful way.They focus on major markets such as ETH, USDC and USDT and only expand to new chains when reasonable.This is a slow and stable approach, but also a reliable approach.
This works well for them.Compound remains one of the top choice for investors looking to earn returns from idle cryptocurrencies.Compound’s total lock-in value is about $2 billion, and may not be the largest player in the DeFi space, but definitely one of the most respected players.
Summarize
It’s refreshing to see DeFi’s blue chip lending agreements compete so fiercely.This driving force that keeps driving innovation is exactly the energy that drives DeFi forward.
As these established protocols compete for dominance, they will be experimented, iterated, and ultimately build a better, more user-friendly, and stronger financial track.This innovation will not only benefit these protocols; it will also benefit the entire crypto ecosystem by attracting new users and enabling wider adoption!
