Messari 2022 Report Synopsis

Market Meditations | December 15, 2021

☄️ Welcome, to DeFi Reborn

Messari’s recent Crypto 2022 Thesis Report included an insightful section addressing Decentralized Finance (DeFi). We’ve summarised the high points for you, to access the full report, please click here.

Stablecoins bridge us from the old world to the new. A popular example of a stablecoin is USDT (Tether).

  • Tether has been plagued by claims of fraudulent activity. 
  • This controversy has afforded opportunity to other stablecoins to grow.
  • Notably DAI and Terra’s UST, the latter of which is the fastest growing decentralized stablecoin of 2021.
  • UST has been the beneficiary of multiple developments in 2021 such as Terra’s Columbus 5 upgrade.
  • In addition, the cross-blockchain bridge, Wormhole V2, launched support for Terra, bringing the stablecoin to Ethereum and Solana.

✅ HOT CRYPTO 1: Look out for developments in Terra in 2022.

Looking to 2022, algorithmic stablecoins also appear to be making a comeback as are ones not pegged to the U.S. Dollar.

A currency controlled by the Fed and Treasury does somewhat limit the ability of crypto to revolutionise the monetary system. The leader of the movement to disrupt the status quo is Olympus DAO.

According to Messari: “Olympus DAO may be the year’s most important new project, and non-pegged stablecoins may be the best bet this industry has when it comes to depegging from the US dollar.”

✅ HOT CRYPTO 2: Familiarise yourself with DAOs, starting with Olympus.

Moving on to the final DeFi trend of 2022, Decentralized Exchanges (DEX).

Many Ethereum DEX’s exist, but some analysts think Uniswap v3 could give existing DEX’s a run for their money.

V3 has a lot of attractive features. For instance, it introduces customizable trading fees (30bps, 10bps, 5bps, 1bps) that incentivise liquidity providers to make new markets on otherwise illiquid pairs.

✅ HOT CRYPTO 3: Deep dive into Uniswap v3 and its features.

Part 2 of our DeFi series on Thursday will discuss a few specific DeFi projects and tokens that we are excited about.

To receive Part 2, make sure you’re a FREE member of the Market Meditations community, sign up link ➡️ here.