Defi in case you didn't know, is the abbreviation of decentralize finance, in most people that have been involved in the crypto world for any length of time, would probably agree with the statement that decentralize finance, is likely the future of global finance in general. I would most certainly agree with such a statement, and as over the years we have seen the massive increase of usage and creation of new decentralize capable platforms. It has become clear that this sentiment is pretty much become the most prevailing one. But even so, in terms of most used Defi platforms, EOS main-net is often overlooked by many developers, even though arguably the EOS-IO platform allows for the most sophisticated creation of smart contracts. So, in this video we will be going over a recent article I read by Yves La Rose called “In Support of the EOS DeFi Ecosystem” and I will be giving you my opinion, on what I believe it means for EOS main-net, links to the source article will be in the description below, OK now let’s get started.
To summarize and paraphrase the article first begins with, EOS was developed to be a financial machine that was designed from the ground up with decentralized finance (DeFi) at its core, long before the term became popular. EOS is a highly scalable blockchain that has been battle tested and proven for more than three years. It features sub-second latency, high throughput, and a rigorous permission structure that enables applications that are unimaginable to construct with any other platform. In a market where cryptocurrency prices dominate the majority of talks, DeFi emerged as a new-phenomena and gained unprecedented attention as total value locked (TVL) on-chain expanded and yield farming became a prominent fad.
While EOS is a highly liquid coin that is traded on nearly every centralized exchange, EOS alternatives have not enjoyed the same level of liquidity. Tether (USDT) is the most liquid stablecoin on the market, however the EOS version of USDT is only available on Bitfinex and Kucoin, making access to these fiats and stablecoin on/off ramps rather difficult for customers in many excluded countries. If a hypothetical individual desired to bring their liquidity on-chain to EOS in order to participate in DeFi, they would need to first convert all of their stablecoins to EOS, then withdraw the EOS on-chain, and finally convert the EOS back to USDT using a DEX or AMM. Apart from the whales, the absence of EOS stablecoin on/off ramps creates friction for individuals compensated in stablecoins for their labor. The ENF is attempting to alleviate this congestion by prioritizing the listing of the EOS version of USDT on additional major exchanges. Pursuing this endeavor will be one of the most significant things the ENF can do to boost on-chain DeFi, liquidity, and usability.
Interoperability, when the DeFi summer took off, Ethereum's gas fees rose to the point where the majority of users were priced out of actively engaging in the DeFi ecosystem. When this occurred, it paved the way for other generation 3 blockchains to gain a sizable portion of TVL and market share. They were able to accomplish this because they have token bridges in place that enabled the smooth transfer of E-R-C-20 tokens between blockchains. Additionally, the token bridges, the Foundations behind many of these gen3 chains have been able to use they’re treasuries to offer attractive liquidity mining rewards in order to draw capital to their chain and participation to their DeFi ecosystems.
Prior to the ENF, this type of top-level assistance was not even an option. While EOS already has bridging technology in place that enables the movement of both tokens and data across blockchains, the requirement to create an EOS account remains a barrier in comparison to EVM-to-EVM bridging, which uses the same wallet keys across chains. Interoperability will be critical to EOS's future success as more projects transition to multi-chain architectures in order to spread across numerous ecosystems and communities. Additionally, allowing EOS to be moved to other blockchains increases its value as a collateral while also increasing its accessibility and liquidity across other DeFi ecosystems.
To realize its full potential, EOS must be tuned for both imports and exports. The ENF is also aiming to make it easy for existing initiatives to expand to EOS. This will be accomplished by focusing on improving the native EOS developer experience and on EVM compatibility, which will enable existing EVM-based applications to be deployed on EOS without requiring large code modifications and will enable EOS to tap into an enormous reservoir of developer talent. In the short term, developers and projects will benefit from EVM's mature tooling, open-source standards, and knowledge base, while also gaining exposure to many of the EOS VM's advantages in the medium and long term.
Developers should have a choice in terms of technology. Additional virtual machine support will also be a priority if they achieve widespread developer adoption. Additionally, EOS could benefit in the future from enabling compilers for EOSIO smart contracts that are not written in C++ but rather in other mainstream programming languages. EOS will evolve into a blockchain innovation hub and settlement layer that supports rather than opposes other technologies.
Just my opinion, but the overall assessment for this article is spot on, decentralized finance is the bread and butter of any programmable blockchain platform, and none arguably does it better then EOS main-net itself, yet it has some of the least adoption in comparison to its nearest competitors. As this article rightly pointed out, in large part this is likely to do with, EOS main-net not having any real native stable coins that have significant on and off ramps, currently the closest stable coin that we have to this is, USDT tether. Yet, the EOS version of tether has very few Fiat on and off ramps, addressing this problem will go a long way into stimulating future adoption by decentralized finance developers, who overwhelmingly get paid in crypto. This is a crucial area to address if we hope to ever create as rich of a developer ecosphere, as larger networks like Ethereum.
The big takeaway for me was and I quote, “To realize its full potential, EOS must be tuned for both imports and exports. The ENF is also aiming to make it easy for existing initiatives to expand to EOS. This will be accomplished by focusing on improving the native EOS developer experience and on EVM compatibility, which will enable existing EVM-based applications to be deployed on EOS without requiring large code modifications and will enable EOS to tap into an enormous reservoir of developer talent.” End Quote. Arguably this is the most significant thing that can happen, within the next couple of months to a year, in my opinion. I cannot communicate enough how crucial it is to create more direct connections, to other more mature blockchain ecospheres, this alone will likely have the biggest impact on price, and at the end of the day, for most crypto holders price is one of the foremost concerns. By EOS main-net adopting more of a collaborative stance what other blockchain technologies, this alone will go a long way in addressing much of the negative perception. As well as allowing other blockchain communities to see EOS main-net more as a useful developer tool, rather than a direct competitor. The future of blockchain is interconnectivity, and arguably the more interconnected we become with the rest of the blockchain world, the more we will be adopted. And the greater positive upward impact this will have directly on EOS main-net price.
To all EOS holders, interconnectivity is the future.