Decentralized Finance (DeFi) has evolved significantly since its inception, and we're now entering what many are calling DeFi 2.0. This new phase brings improved security, better user experience, and more sustainable yield farming mechanisms.
Key innovations in DeFi 2.0 include protocol-owned liquidity, ve-tokenomics, and improved risk management. These developments address many of the challenges faced by early DeFi protocols, including impermanent loss and unsustainable token emissions.
As the DeFi ecosystem matures, we're seeing increased focus on real-world asset integration and regulatory compliance. This evolution could bring DeFi to a broader audience while maintaining its core principles of decentralization and financial sovereignty.