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HomeNewsGen2 Tokens: Has DeFi 2.0 Summer Begun?

Gen2 Tokens: Has DeFi 2.0 Summer Begun?

As some DeFi projects crash, a whole host of new ones emerge. They are rapidly entering the market with more aggressive yield farming programs, lavish airdrops, and solid technological advancements. This set of new DeFi is being propelled not only by token value growth, but also through fundamentals. Because of this, cryptanalyst eGirl Capital Mewny named them Gen2 DeFi tokens. So he hints that this is a new generation of coins, which came not to cut money quickly, but to stay and gain a foothold in the market.

Gen2 Tokens

Mewny calls eGirl Capital a fund that takes itself as an extremely serious joke. According to him, Gen 2 tokens are gaining attention thanks to their well-cultivated communities and the right coin distribution models.

“From a market interest perspective, I think it has more to do with finding novelty at this stage of the cycle. Fundamental analysis will be more important when the market cools down and utility becomes the only basis for valuations. “

“Yes, investors are still ready to jump from one fast-growing project to another. But do you need to ask yourself? What happens when the market slows down? Which projects will be more sustainable? Which ones will be really helpful? And what will happen to those DeFi that cannot successfully compete with the best. “

Pump or Fundamental?

The Gen 2 phenomenon echoes the DeFi summer of 2020, filled with lavish airdrops, as well as a huge and unpleasant stream of hacks, robberies and rugpulls. However, Mewny is paying attention. There is a population of investors who have come out of this period. They are constantly on the lookout for technical progress, not catching shooting stars.

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It could be. “Coincidentally, the WSB and AMC pump and the alleged involvement of the White House and the FBI in barring retailers from buying this stock called into question the layout of traditional finance. DeFi is the new foundation of finance reliant on smart contracts and a secure, transparent base layer.” – says Bohdan Prylepa CTO of Prof-it Blockchain Ltd and COO in Bitcoin Ultimatum

“The sphere is open and censorship-resistant. Investors can participate without accreditation. There is no way facilitating ramps can censor any investor from profiting when a token is rallying. The system is transparent and, from the on-set, tuned to be investor-facing.” he added.

Some investors may think that DeFi projects are quickly exhausting their growth. Usually, this conclusion is based on the fact that they are pulling out liquidity at the start. But this is not the case. There are always participants who try to jump on the departing train. Therefore, the flow of liquidity does not dry out.

One of the pillars of Gen 2 is reverse funding. With its help, you can steadily pull out the necessary liquidity. After launching the yield farming program for the INV – Inverse Finance synthetic stablecoin protocol, his community decided to make the token tradable. As a result, the almost useless INV tokens that were handed out during airdrops are now valued at more than $ 100K. This is probably the highest profitable airdrop in DeFi history.

Another Gen 2 star is Alchemix. This is one of the first announced investments by eGirl Capital. The Alchemix protocol is also based on the synthetic stablecoin alUSD. But he releases the stablecion from the pledge deposited with Yearn Farming. The result is a symbolic loan. And this model can become the new standard.

Morrishttps://etrendystock.com/
Morris is a Technology enthusiast and a writer by night. He has been a part of eTrendy Stock for quite some time and he contributes knowledgeable news articles from the Technology niche. He attended a technical school in Florida.

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