Don't Be Fooled: Exchanges Are the Ultimate Winners in DeFi

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DeFi (Decentralized Finance), after two years of slow adoption, exploded in late June 2020. The catalyst? Compound's "liquidity mining" initiative, which introduced governance token COMP, skyrocketing up to 20x in value. This triggered a wave of模仿 (imitation) across projects, driving massive user participation and a surge in locked assets.

The Rise of DeFi and Exchange Reactions

DefiPulse data shows a 100%+ increase in Total Value Locked (TVL) within a month, reaching $2.15 billion. Centralized exchanges (CEXs) quickly capitalized by listing DeFi tokens and derivatives. But how deep does this engagement go?

Common Strategy: Listing DeFi Tokens and Derivatives

  1. Investor Benefits:

    • Lowers barriers to entry (e.g., COMP trading on 40+ CEXs like Binance and OKEx).
    • Reduces counterfeit token risks prevalent on DEXs like Uniswap.
  2. Exchange Advantages:

    • Captures traffic and revenue (e.g., Binance’s COMP futures hit $20M daily volume).
    • Differentiates through first listings (e.g., HBTC’s Nest integration boosted community engagement).
  3. Projects & Communities:

    • Provides liquidity and price discovery (e.g., Nest’s OTC-to-exchange transition).
    • Expands visibility via exchange marketing (e.g., HBTC grew Nest’s Telegram group 3x).
  4. Pitfalls:

    • Low liquidity: Some CEXs lack proper market-making (HBTC’s crowdsourced liquidity model mitigates this).
    • Scam projects: Vigilance is required to avoid "DeFi-washed" tokens.
    • Premature listings: May disrupt project roadmaps (e.g., dForce’s unplanned DF listings).

👉 Discover how top exchanges leverage DeFi

Advanced Play: CeFi + DeFi Integration

1. Exchanges as DeFi Gateways

2. Supplying Quality Assets to DeFi

Heavy Investments: Building Exchange-Led DeFi Ecosystems

Key Question: Can exchange chains challenge Ethereum’s DeFi dominance? The race is on.

Conclusion: Exchanges’ Strategic Edge in DeFi

Beyond短期 (short-term) gains, top exchanges are positioning DeFi as a core growth pillar. As拾二 notes: "CEXs will dominate DeFi’s future."


FAQs

Q: Why are exchanges listing DeFi tokens so aggressively?
A: To capture trading volume, attract users, and stay competitive—though thorough project vetting remains critical.

Q: How do exchanges simplify DeFi for users?
A: By integrating DeFi services (e.g., staking, lending) into familiar interfaces, reducing technical hurdles.

Q: What risks come with exchange-led DeFi?
A: Centralization trade-offs (e.g., reliance on CEX-controlled assets) and unvetted project listings.

Q: Can exchange tokens like BNB replace ETH in DeFi?
A: They’re gaining traction (e.g., BNB抵押 on Kava), but Ethereum’s network effects are still formidable.

👉 Explore DeFi’s future with leading platforms

Appendix:
Top DeFi Tokens by ROI (Available upon request).


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