DeFi Outlook in 2022
Written by EmergentX Insights team
February 16, 2022 | 1 Min
Highlights
- The landscape of DeFi is set to become more diverse as concepts from traditional
finance are reinvented in DeFi. - Given the disruptive nature of DeFi, partial regulation is a likely outcome in 2022,
which will lead to a middle ground between DeFi and CeFi. - DeFi innovations such as DeFi 2.0, DeFi 3.0 with NFT integration, GameFi, will help
onboard more users.
Core thesis
Decentralized Finance (DeFi) replicate a broad spectrum of existing financial services
without centralized intermediaries. DeFi is developing rapidly at the intersection of
Blockchain technology, digital assets, and financial services as an alternative to the legacy
financial infrastructure.
Significance and Disruptive Impacts
DeFi has the potential to make financial services and tools accessible to large segments of
the population at lower cost and with higher efficiency. Given its disruptive potential,
regulators have been eying DeFi, which may result in a parallel DeFi industry that ‘live’
within the regulatory framework of traditional finance, which satisfies KYC and AML
requirements. Innovations in DeFi that aim to improve the original DeFi protocols include
DeFi 2.0, better UX via integrations with GameFi, and DeFi 3.0 with NFT integration.
Expectation for 2022
- DeFi is becoming more diverse and sophisticated
DeFi innovations, including centralized and decentralized stablecoins, DeFi 2.0, will
empower the unbanked. - Regulated DeFi?
Regulators are eying the DeFi sector in the name of investor protection against
counterparty and cybersecurity risks.. - Finding a middle ground for DeFi and CeFi to co-exist
The urge to find a middle ground for DeFi and CeFi may result in a blended open
financial ecosystem. The appeal of the scale and size of the institutional market will
likely drive specific DeFi platforms to adopt institutional-friendly processes. - Next-gen DeFi protocols to boost adoption
Next-gen DeFi protocols with better integration and UX will boost adoption.
For example, DeFi 3.0 with NFT integration: staking, lending and more
comprehensive financial applications expanding into NFT-based assets.
EmergentX Digital Asset 2022 Outlook
Year of Consilience
Stay Up to Date With The Latest News & Updates
Access or Join Our Insight Provider Network
Join over 150 independent institutions, professional investors and digital asset natives, powered by institutional-grade research, network and access across the digital asset and blockchain ecosystem.
Join Our Newsletter
Our weekly offering of independent institutional-grade research, spans high-level game-changing trends, infographics and news
headlines.
Stay Up to Date With The Latest News & Updates
Follow Us
Keep up to date with EmergentX and the digital asset landscape.