As you may have known, recently, the crypto asset market is experiencing significant fluctuations. Under this situation, there are different voices about expectations toward the future. Objectively speaking, although terrible news pop up now and then, and the market fluctuates so frequently after the May 19th crash, the DeFi ecosystem is still positively developing, unaffected. What is more, new members are joining the Polkadot ecosystem, accumulating potential energy for the ecology’s explosion.

In the first half of 2020, DeFi, whose overall development had stayed stagnant, ushered in an explosion period. After the speeding up in 2020, DeFi had become a unicorn with a siphon effect, causing FOMO emotions. In early May 2020, DeFi’s overall TVL(Total Value Locked) is no more than 1 billion dollars. Only half a year later, DeFi’s overall TVL reached 12.5 billion dollars in early November. Coming to early May 2021, DeFi’s overall TVL reached the peak — 83.4 billion dollars. From the variation of DeFi’s overall TVL, it can be easily seen that the DeFi track had shown a trend of Exponential development.

Although the market experienced the May 19th crash, DeFi’s overall TVL is rebounding after falling. Seeing from the data, the crash did not affect DeFi section that much. Currently, the overall DeFi ecosystem is still developing optimistically.

If we look at the thickness of DeFi ecology, through this year’s development, DeFi section has shown continuously refined horizontal enrichment. For example, besides the standard modules familiar to investors like DEX, loan and stable coin, new modules like insurance, synthetic assets, and algorithm stable coin have also formed a considerable investing user scale. On the other hand, in the longitudinal direction, with Ethereum based DeFi ecosystem still flourishing, New DeFi ecosystems in Heco, Binance Smart Chain(BSC) and Polkadot are also on the rise. Especially in 2021, Polkadot ecosystem has witnessed an eruption of members and the first Kusama parachain slot auction is coming soon, showing that Polkadot ecosystem is stepping into a new chapter.

The DeFi section has developed for only a short time, and the overall form is still based on trading, but with the development of the cryptocurrency area, DeFi has a powerful endogenous dynamic. Considering that many of the base ecosystems of DeFi, e.g. Polkadot, are still in the early phase, we can see the quite excellent development potential of DeFi as a whole. With the development of DeFi section, its ecosystem products will need to innovate and make breakthroughs other than sticking to the single scene product — trading. To be more specific, current DeFi products take high annualized income APY as the primary motivation to attract the investors, and when APY falls weak, DeFi will also step into the bottleneck period. This is taking trading as the main power of ecosystem development.

When the industry falls to the cold market, for example, after the May 19th crash, trading is no longer the dominating behavior of DeFi. DeFi may be more suitable for product and business study, which might help DeFi realize the innovation and breakthrough of products. From the traditional internet point of view, most of the ecosystem will form deep interaction with social activities when the user scale explodes. When DeFi passes the trading dominated phase, it will possibly develop to the path of socialization.

So, based on our insight into the industry, we would like to reinterpret the orientation of RAI Finance:

RAI Finance aims to become the epicenter of the Web3.0 world, realizing a polymerized connection of areas like issuance of blockchain assets, cross-chain trading and social trading platform.

RAI Finance has a global team base deep into the Korean market. The team members are from China, the US and Korea. Each of them has on average over 3 years’ experience in their local blockchain industry. We are not anonymous, and we take the security and consistency of our product seriously.

RAI Finance works closely with Korean top social trading platform — League of Traders, bringing quite a big userbase for the ecosystem. To be more specific, most decentralized trading protocol projects’ user base starts from 0. However, RAI Finance already has 15k+ users and $3B USD trading volume per month by cooperating with the Korean №1 social trading App — The League of Traders.

We are exploring more potentials in DeFi area. We craft common modules like IDO, Swap, Vault much easier and faster and add colors to our product with social trading. We are going to make cross-chain DeFi much easier and more exciting.

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Source: https://medium.com/rai-finance/cold-air-sweeping-the-market-rai-finance-exploring-new-defi-ecosystem-6ed1c9c064fd?source=rss——-8—————–cryptocurrency