Why PrivacyFi Is Set To Be 2024’s Biggest DeFi Trend
Privacy-Focused DeFi Set For Rapid Expansion
With the introduction of DeFi’s first privacy-focused stablecoin solution, Vine Money is well-placed to capitalize on not just one but two of 2024s fastest growing markets. As discussed in our previous article, the stablecoin market itself is forecasted to be worth $3T within 5 years. But the privacy market itself is also primed for rapid expansion. PrivacyFi is expected to be one of 2024’s hottest DeFi trends, with a recent Coinlive report predicting that 2024 is the year that “privacy goes mainstream.”
In today’s article, we’ll be diving into why privacy is becoming an evermore important concern for DeFi users and how Vine Money answers to their needs.
Increasing Data Breaches, Government Overreach & Mass Surveillance
The first driver of the rising PrivacyFi movement is the proliferation of risks that DeFi users are facing from bad actors, both private and public, including:
Mass Surveillance: The US Treasury Department and the IRS are engaging in unprecedented levels of mass surveillance. This includes teams of dedicated IRS agents attempting to connect blockchain transactions to identifiable users as well as new regulations in the pipeline requiring both centralized and decentralized exchanges to detail users’ transactions
Government Overreach: The US SEC has been making an increasing number of spurious investigations that are so excessively aggressive, that even federal judges have rejected their enforcement approach.
Data Breaches: In 2023, an estimated 8,214,886,660 data breaches and cyber attacks were made against global IT system, with over $2bn stolen from crypto exchanges.
With these risks in mind, it is no wonder that DeFi users are increasingly looking to find ways to maximize their privacy in a fully compliant manner.
But the PrivacyFi trend is not just driven by fear. There is also a range of exciting developments taking place in the world of DeFi that are pushing privacy to the fore…
Privacy ETFs On The Horizon?
The approval of spot Bitcoin ETFs has been the biggest story in the world of crypto in 2024 so far. Over $1.24bn of inflows had already come in from ETFs by Jan 12 this year, driving BTC prices to a new 21-month high.
So, what would happen if a privacy-focused ETF were to launch?
Well, we might be about to find out.
In a recent SEC filing, Grayscale discussed plans for an ETF that will “provide exposure to privacy-oriented digital assets that are designed to ensure more private and secure transactions by obfuscating user identities and transaction details.”
Not only could such an ETF stimulate a deep influx of capital into the PrivacyFi sector, but it also underlines how important institutional investors see privacy-focused DeFi in the coming years.
Oasis Sapphire Starting To Shine
One of the assets rumored to be under consideration for Grayscale’s privacy-focused ETF is Oasis Network’s ROSE token. Oasis Network has been leading the way in the PrivacyFi sector by providing the option to add confidentiality to existing dApps on any EVM network. Its Oasis Sapphire product is the first and only confidential EVM that empowers Web3 with Smart Privacy.
After a series of dramatic breakthroughs in 2023, Oasis Sapphire has gone from strength to strength with the ROSE token increasing by 3x in value in the last 3 months. The stage is now set for the rise of the first generation of PrivacyFi apps to be built on Sapphire.
Enter vUSD — DeFi’s First Privacy-Focused Stablecoin
In amongst the rise of privacy and security risks, the potential for a privacy-focused ETF and the infrastructure readiness provided by Oasis Sapphire, the sector is primed for a stable unit of account that can form the centre of the new PrivacyFi ecosystem.
Answering this call, Vine Money is introducing vUSD, DeFi’s first privacy-focused stablecoin, built on Oasis Sapphire. With its unique blend of privacy, stability and omnichain functionality, vUSD will become the stable unit of account across multiple blockchains.
Furthermore, vUSD will form the basis of an entire privacy-centric DeFi ecosystem, unlocking everything from confidential supply chain financing to private remittances, and more.
Finally, its novel decentralized governance model will bring Curve Wars dynamics to the Oasis Sapphire ecosystem with the “War Of The Roses.” These features position Vine Money to lead the charge on the PrivacyFi trend, capitalising on the key drivers outlined in this article.
With the protocol set to launch in late Feb 2024, there is currently an opportunity to get on the Whitelist for the forthcoming Vine Money Public Sale IDO by entering our raffle. We’ll be providing more exciting updates on the project soon and in the meantime you can keep in touch with us at:
X / Twitter: @Vine_Money
Telegram Community: https://t.me/vinemoneyofficial
Telegram Announcements Channel: https://t.me/vinemoneyofficial
Website: https://vinemoney.xyz/
