dForce to Build The Permissionless Liquidity Network!

The landscape of crypto has undergone significant evolution over the past four years. When dForce embarked on its crypto journey, it was amidst the turbulence of 2019 bear market, with DeFi still in its infancy.

From the outset, dForce envisioned a comprehensive DeFi ecosystem, aiming to build an integrated suite of protocols covering stablecoins, lending, yield optimizer, swaps, trade aggregator, bridges, and more. We have witnessed and weathered the storms of the DeFi summer and winter, experiencing the highs and lows of this rapidly evolving space.

The challenges of the previous cycle saw the downfall of giants like FTX and the king of DeFi Ponzi schemes — Luna, inflicting considerable trauma on the industry.

At dForce, we have been at the forefront of this evolution, recognizing several key trends:

• Multichain/app-chain is The New Norm: We firmly believe that the future of crypto is multichain and modular. Adapting to this new normal is imperative for all projects.
• DeFi protocols are now commoditized like Infrastructure : DeFi protocols are transitioning into infrastructure and becoming commoditized. Core DeFi primitives such as AMM, lending, and decentralized stablecoins are increasingly becoming standardized across chains. As a result, penetrating the market becomes more challenging, with existing protocols facing competition from new DeFi entrants offering similar services (commodities) and more token incentives.
• LSD Assets is Native Crypto Money. We continues to see the insanely fast penetration of LSD asset and now into restaking. economic
• RWA (Real World Assets) are gaining significant traction as crypto converges with TraFi. In the last cycle, we witnessed a substantial penetration of RWA assets, notably fiat stablecoins such as USDT and USDC, and more recently, tokenized T-bills like sDAI and USDB. Stablecoin yields have become a standard feature, and we anticipate that all stablecoins will eventually incorporate T-bill yields into their core offerings. This integration reflects a broader trend of RWA assets permeating into other real-world assets and traditional financial products, including fixed income securities, stock and other investment instruments.
• Intersection with Non-Financial Infrastructure: In the previous cycle, the crypto landscape was largely dominated by DeFi dapps, including lending protocols, AMM, stablecoins, perpetual trading platform, and centralized exchanges. However, as we enter this new cycle, it is heartening to observe the emergence of more non-financial applications and infrastructure. Notably, we are seeing intersection between crypto and AI, DePin, decentralized social networks, and gaming. The intersection with these mega trends is poised to introduce an entirely new array of non-financial applications and use cases.

dForce has been proactive in adapting and pivoting within this evolving landscape. We’ve successfully implemented X Plan and multichain strategies and are now present on over nine crypto EVM-compatible chains. Additionally, we’ve built a comprehensive integrated DeFi vertical with shared liquidity.
Over the past year, we expanded our lending protocol and rebranded it to Unitus Finance, continuing to reposition ourselves and adapt to the changing market landscapes.
dForce is committed to transforming into a permissionless liquidity network, with ecosystem projects operating within specific verticals but unified under the same umbrella.
In the coming months, we will unveil transformations aligned with our mission. dForce will focus on empowering our ecosystem partners and projects across different verticals:

1. Unified Money Market: Our money market protocol has empowered dForce lending, Liqee, and now Unitus Finance. With our 2.0 upgrade underway, it is poised to become the most efficient and advanced money market protocol in DeFi. We also expect Unitus to continue building and expanding on top of our protocol.
2. Omni Stablecoin Infrastructure: We have been building a stablecoin protocol since our very inception. With USDx being the first meta stablecoin in the market, and USX a general omni stablecoin integrated with the lending protocol. USX will be hosted on usx.finance and operate as dForce’s ecosystem project.
3. Yield Assets Standard: dForce has built a variety of yield token standards, including dUSD, which is a yield aggregator token, and LSR (a stablecoin reserve token integrated with the lending protocol). We expect to launch more yield token standards that other protocols can integrate with.
4. RWA Tokenization Protocol: We are the first DeFi project to introduce RWA on-chain, which includes our first RWA asset, Goldx (a Gold token built on top of PAXG). Our RWA efforts will focus on building a framework that could onboard trillion-dollar RWA assets.
5. AI-driven Automation for DeFi: We expect AI agents to completely automate most crypto activities. We have already built AI-trained agents for crypto trading strategies and started to tokenize some of the delta trading strategies. We expect to launch more AI-based automation tools for DeFi protocols (automated interest rate setting, etc.).
6. Interoperable LSD Infrastructure: dForce has already established partnerships with several ecosystem projects, including Lido, Rocket Pool, SSV, and Aspida, to further develop an LSD layer within our ecosystem. We also have experience running PoS validation networks. Our LSD efforts will focus on ETH LSD and the Bitcoin network, with plans to extend our validation to DePIN. We eagerly anticipate incubating new projects focused on this vertical.

As we double down on building the liquidity network, our ultimate goal is to create a value network that is open to all participants. With crypto more than a decade into its conception and its scalability accelerating, it is prime time to foster a stronger liquidity network that could further onboard the next trillion and the next billion.

We are at the very forefront of this new frontier.

Forward and onward.