What’s in Store for DeFi in 2021 去中心化金融 2021年展望

Decentralised finance projects boomed in 2020. What can investors expect from it in these next 12-months? 去中心化金融项目在2020年增长迅猛。在接下来的12个月中,投资者可以从中获得什么期望?

Prior to 2020, many investors would be hard-pressed to find any astronomical rise in the value of any assets or the expansion of any financial ecosystem like the DeFi sector.

But in the second half of the year, there was a great increase in the number of DeFi projects, fuelled by the digital transformation of businesses especially via the use of blockchain technology and DeFi. This was driven by the necessity of automating business processes to weather the Covid-19 pandemic.

As of 6th Jan 2021, the total value locked in DeFi has achieved an all-time high of US$21 billion, and this growth does not seem like it is slowing down for the year.

Which are the areas where we can expect DeFi to catch on and grow?

Financial Transparency

The biggest financial scandal of 2020 affected investors globally. It brought to light how poor decision making by centralised financial institutions can be hidden behind shell companies and a false paper trail.

However, this is not the first time that poor governance over centralised financial service providers has resulted in major financial crises. In the years between 2010 to 2019, there have been Ponzi schemes that siphoned away billions of investor funds.

Then in the last few weeks of 2020, banks announced that they’ll be slashing their interest rates for 2021 while macroeconomic trend predictions returned low figures.

These announcements have prompted more investors to look at alternative ways of investing that have the potential to provide exponential returns, while giving investors full control and knowledge over where their funds flow.

DeFi is the world’s answer. The concept of DeFi is based on blockchain technology, which was designed to ensure transparency of financial transactions, which are controlled by all the participants within the network versus control by a selective group of individuals.

Although decentralised finance is still in its nascent phase, there are growing indicators that it’s beginning to enter a phase of maturation.

It is already being used for common financial processes such as lending, borrowing, and earning interest, and there is potential for increased adoption of DeFi in emerging markets. We can expect the majority of transaction volume and production development in 2021 to centre around DeFi.

Financial Regulation

One of the key developments for DeFi in 2021 is regulation.

In September 2020, the European Commission announced that regulations on the crypto asset market, including the firms that issue stablecoins, are being formulated. However, the likelihood of any regulation being passed as law may take at least a year as it requires approval by all the European Union governments as well as the European Parliament.

In Canada, Bill C-31 was amended by the Governor General of Canada in 2014 to include virtual currency providers as money service businesses. The law is not yet enforced as it is pending subsidiary regulations, but with the phenomenal growth of DeFi in 2020, the Canadian government may revisit this.

It’s a slightly different story in Singapore, as in the first week of January 2021, its Parliament passed the Payment Services Act stating that any entity facilitating the transmission, exchange or storage of digital payment tokens, otherwise known as cryptocurrencies, will have to be licensed by the Monetary Authority of Singapore.

These regulatory actions are focused on compliance by the providers of the digital currencies in terms of Know Your Customer documentation and Anti-Money Laundering practices. They don’t regulate the decentralised ecosystem of the DeFi financial system and could potentially benefit the industry by instilling confidence in institutional investors.

While regulations are a means of bridging the worlds of traditional and decentralised finance, decentralised platforms should stand united and find ways to interoperate. This will help the DeFi space to reach its maximum potential over these 12-months.

Wider Adoption

Thanks to Bitcoin carrying its strong rally into the new year — BTC value hit US$40,000 on Jan 7 — more people are now more interested in cryptocurrencies.

As BTC may be too pricey for most to buy into at the moment, attention has turned to altcoins.

As of the first week of 2021, fintech experts have been weighing in on the top altcoins to invest in for the year. Some notable mentions include Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Binance Coin (BNB), Ripple (XRP), and Ada.

Of the altcoins mentioned, the most known is Ether (ETH), which is also the second largest cryptocurrency after BTC by market capitalisation. ETH is the currency for apps that run on the Ethereum blockchain.

Several altcoin protocols and applications are built on the Ethereum blockchain. As interest in ETH grows, so will the development of DeFi protocols and applications built on Ethereum.

As Ethereum readies itself to roll out layer 2, we can expect huge improvements to the Ethereum blockchain, and in turn, other blockchains. This will drive greater appeal and confidence in DeFi, which will mean wider adoption and utility as one of the main trends in 2021.

Building Confidence

DeFi also has to look at building investor confidence among institutional and retail investors. At the moment, many are reluctant to adopt the technology due to barriers to entry for blockchain infrastructures as well as platform accessibility.

Another area of concern is the security of personal information, even though these are secured with blockchain technology.

2021 could see a more secure method of authentication with the arrival of Zero Knowledge Proof (ZKP). Blockchain-based ZKPs allow companies with different record-keeping systems to verify information on a record-by-record basis without requiring sensitive information such as passwords.

While much progress has been made in the development of ZKP solutions, their deployment remains much more complex than the use of smart contracts on the blockchain.

Nevertheless, 2021 could see leaps and bounds in the implementation of ZKPs in tandem with the growth of DeFi.

Developing Ecosystems for Mainstream Integration

For DeFi to stake its claim in the realm of traditional finance or to coexist with traditional banking institutions for a more integrated and open financial ecosystem, DeFi protocols and apps will encourage user adoption and retention through a comprehensive ecosystem.

The combination of the above main trends will help drive its growth in 2021 and beyond.


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  • 财务透明度





DeFi是全世界的答案。 DeFi的概念基于区块链技术,旨在确保金融交易的透明度,该交易由网络内的所有参与者控制,而不是由选择性的个人控制。



  • 财务监管







  • 建立信心






  • 开发主流整合生态系统











Plutus is a democratised financial ecosystem. Plutus is a technological enabler for a myriad of fintech use cases. Plutus is a financial revolution that will disintermediate existing systems. Plutus will disrupt the way banking is perceived.

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