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By Ashley OERTH, Senior Investment Strategy Analyst at Invesco
The world of decentralized finance (DeFi) has taken the world by storm. It has only been a few years since DeFi has rushed onto the radar of financial experts, but the nascent phenomenon has already gone through different stages of development.
The first iterations serve as powerful proof of concepts of what permissionless smart contracts can achieve in the field of finance. However, circular token speculation was the main driver of DeFi 1.0. People were using DeFi protocols to farm tokens for the token’s sake. This is about to change with the ongoing adoption of real-world assets (RWAs).
Circularity broke DeFi’s back
Since DeFi...
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