What to Expect from the Future of the DeFi Industry, and How DeHive Will Contribute

Decentralized finance (DeFi) is a massive industry with even bigger potential. At the end of 2021, the total value locked (TVL) of cryptocurrency in DeFi exceeded $274 billion, which was seven times more than at the beginning of the year. Crazy, right?

So if the numbers are that high, what should we expect in 2022? Will the market stick to such an exponential growth or crash altogether? Today, we’ll try to answer these questions, gain insider knowledge from experts, and learn as much as we can about the future of DeFi.

What to expect from DeFi in 2022

Let’s start with a not-so-distant future. What’s gonna happen to DeFi this year? Should we expect a golden age or a dramatic crash?

According to some experts, the world of decentralized finance will need to be reborn in a new shape, leaving outdated technologies behind and implementing new solutions.

“As retail investors begin to realize the dangers of trading bitcoins, especially in unregulated ‘crypto banks,’ they will turn to other currencies that play an essential and pivotal role in decentralized finance”

Carol Alexander, a finance professor at the University of Sussex.

You might have already guessed what these “other currencies” are. Alexander is talking about DeFi and Web3 in the first place, predicting them to be the next big thing and to overcome Bitcoin by TVL and other metrics. According to her and other specialists, decentralized finance will undergo radical changes that will completely transform the market as we know it.

What the future holds

There is not that much doubt on what to expect from the DeFi industry in the more distant future. Most experts agree on the fact that decentralized finance will gradually expand its influence and eventually reach mass adoption, providing people with financial services worldwide.

However, there is still some discussion on the exact time frames of the DeFi mass adoption, and the reason for that is lying on the surface. The thing is that the industry in its current form is far from perfect and is definitely not ready to be used by billions of people.

To facilitate DeFi mass adoption, we need to work on a few things:

• build easy to use decentralized applications (dApps) with a clear interface that can be used by people with limited DeFi knowledge;
• introduce more clear and coherent regulations to provide a safe and stable environment for developers and users;
• boost DeFi security, taking care of protocols and users and protecting them from any malicious activity.

As soon as we complete these steps, decentralized finance will be able to reach its maximum potential and transform the everyday lives of billions of people.

Besides, DeFi 2.0 will need to address the problem of liquidity and implement liquidity incentivization to enhance its influence. In the future, it will also need to obtain several features:

• become compositional to facilitate the interchange of different components;
• implement automation with more and more off-chain workers emerging;
• prioritize active management to boost liquidity;
• bring decentralization even to the off-chain part of the systems.

We all strive to achieve DeFi mass adoption, but the question is if we are ready to address the issues above and contribute to the industry pro bono. DeHive is. And we are already taking practical steps to facilitate DeFi use.

How DeHive contributes to the future of DeFi

“The future of DeFi lies in active usage of the whole portfolio in the simplest and most efficient way — all liquidity should work, and all liquidity should be under the user’s control. DeHive represents all qualities of the DeFi 2.0: decentralized, extremely easy to use, user-friendly, and, what’s most important, with every asset working to the user’s benefit”

Pavel Horbonos, CTO at DeHive.

At DeHive, we strive to make the life of a regular trader easier.

You might have just started your DeFi journey and don’t know much — no problem, we’ve got you. Invest in crypto indexes in just one click and receive a stable profit. Don’t worry about choosing tokens, DEXes, or doing research on different projects — it’s all done for you by DeFi specialists and professional traders from the DeHive team.

Or maybe you are already an experienced trader looking for a simple way to diversify your portfolio? You guessed it — indexes are the best option. DeHive crypto indexes are yield-generating crypto baskets containing the best-performing tokens of one network that represent a whole segment of a DeFi market. No need to select tokens manually and decide how much funds you want to invest in each cryptocurrency for optimal returns — that’s already been done for you by our experts.

Besides, for those who want to get even more profit, we’ve created DeHive Impulses, a special tool that helps you get automatic compound interest on your LP tokens throughout multiple chains.

With all these tools, DeHive helps users get the most out of decentralized finance and maximize their profit with minimum efforts. Our platform is extremely easy to use, and detailed guides in the Help center let anyone access the world of DeFi, even if you have zero experience.

But most importantly, we prioritize user security, taking care of your data and funds’ safety. The DeHive team has no real access to users’ funds or their personal information — the whole platform is managed by a highly-secure smart contract that was repeatedly audited by several reputable auditing companies. This way, we provide users with a safe environment for easy investment and portfolio diversification.

“The future of DeFi is crypto indexes. And we are here to prove it”

Mike Morhulets, CEO at DeHive.

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