TL;DR of the DeFi Track

- Hyperscaling DEXs by Osmosis
- Integrated Applications by Neutron
- Bitcoin going cross-chain: BTCFi
- Why DeFi is broken &
- How to make DeFi great again: DeFi 2.0
- Integrated vs. Modular DeFi

Agenda of the DeFi Track

Hyperscaling DEXs

What dose "Hyperscale" mean?

1) Fast: <250ms finality.
2) Cheap: low to no gas fees for most txs.
3) High throughput: 10K+ txs per second, at least.

Three steps to hyperscale a DEX

1) Minimize on-chain footprint: Push the orderbook off-chain to your validators (100x throughput).

2) Strengthen trader guarantees: Allowing validators to contribute to block building (CLOBBER).

3) Privacy: Threshold encryption of votes/TEE.

How to hyperscale a DEX

Answer: Build an Appchain!

"Whatever path you take to hyperscale a DEX, it's gonna lead you to building an Appchain." Alpin Yukseloglu

Integrated Applications on Neutron

"The best tech doesn't always win, the best product usually does."

How to improve crypto UX?

The crypto UX today is still pretty complicated and involves too many steps.

This entire process from App discovery to successfully interacting with in on-chain is way too complicated and time consuming. Most steps can and must be removed!

1) Create a wallet in 1-click, from wherever they are:
- from the App itself, without going to the AppStore.
- no Web3 wallet? Create one with Passkey in 3-clicks!

2) Abstract away Gas:
- free txs for new users.

How to build better products?

Integrated infrastructure aka Appchains, enable more efficient mechanisms than any other platform.

By closely integrating all parts of the stack, we can turn better tech into better products, attracting new users and capital to the ecosystem.

How to make DeFi great again?

1) On chain privacy:
Without on-chain privacy we won't get the same trading volumes as CEXs. Market makers don't trade on chain cuz it would leak their trading strategies to the entire world. Sunny

2) Distribution
We have to bring DeFi products to where the users are. Charles d'Haussy

3) Remove bridges
Bridges are the biggest attack vectors in crypto and lead to bad UX. GC

4) Integration
Having a tightly integrated DeFi ecosystems has a lot of advantages. Zion

Integrated vs Modular DeFi

Modular is good for spot trading:
- That's what Polaris is trying to solve.
- Offering an interface to spot trade all assets across all chains.

Integrated for leverage trading:
- Once leverage is introduced, you need a high level of integration.
- dYdX or Hyperliquid

Why DeFi is getting Worse

- Liquidity & user fragmentation.
- Lots of rivaling DeFi protocols.
- Siloed DeFi ecosystems (Ethereum + L2s, Solana, Cosmos, etc).
- Liquidity incentives no longer work.
- DeFi lost it's initial appeal.

How to solve these issues?

Euclid Protocol - The Unified Liquidity Layer presents a solution to this problem.

- Access to all chains & all tokens natively.
- All DeFi protocols in one place (Spot, Perps, Lending & Borrowing, etc).
- Unified liquidity.
- No bridges, good UX.

A one stop interface for all of DeFi!

Bitcoin's Cross-Chain Era

- Bitcoin will become the main capital asset in DeFi.

- Centralized BTC versions like WBTC will be replaced by dec. solutions like ckBTC or nBTC represented in the form of allBTC (alloyed Bitcoin) on Osmosis and the broader interchain.

Over time, as major BTC L2s like Stacks go live, Osmosis will add them to the allBTC pool, making Osmosis and allBTC the best liquidity interoperability protocol for the growing Bitcoin L2 ecosystem.

Other interesting takes on Defi by Sunny

- DeFi has value cuz it's permissionless. We have a larger tail end of assets, that are not available on CEXs. Hence, the best opportunities are one chain. New assets like $UWU or $GOAT are only available on-chain.

- To build the best DeFi Apps you need an integrated Appchain and the Cosmos tech stack is the best for building dec. Appchains.

DeFi 2.0 - Panel

- We have to make DeFi fun again. The latest memecoin frenzy is a first sign of users having fun and coming back on chain.
- UX matters, and a product that meets the customer's needs sells itself.
- Most DeFi activity will soon come from AI agents.

That's it for the DeFi track. We hope this article helped you stay up-to-date with the latest DeFi developments in the Interchain.

Disclaimer

This article is intended to educate readers about certain topics and does not constitute financial advice in any way.