The article explores three key trends shaping the future of DeFi: the use of real-world assets, yield competition, and shift towards modular architecture.
RWA Driving Sustainability in DeFi
Real World Assets (RWAs) such as real estate and stocks are tokenized on the blockchain, offering new investment opportunities in DeFi. They provide more stable returns, reduce risks, and attract institutional investors. Challenges remain in legal compliance and asset verification that need industry-wide solutions.
Yield Competition Amid Rate Cuts
Global interest rate cuts drive capital into DeFi, offering higher yields compared to traditional markets. DeFi protocols offer liquidity incentives and develop yield optimization tools, attracting both retail and institutional investors.
Modular DeFi — The New Trend
Modular DeFi breaks down functions into independent modules, enhancing flexibility and security. This reduces development barriers and improves capital efficiency. However, it may lead to competition and compatibility challenges.
Trends such as RWA integration, intensified yield competition, and modular design promise a bright future for DeFi. Addressing regulatory and compatibility issues is crucial for realizing its full potential.
