Author |Spike Editor |Jerry Crypto Copyright | ThePrimedia
The deep meaning of DeSOC is decentralized society, and Finance in DeSoc refers to finance in a decentralized society. It is the infrastructure of a decentralized society and has the property of universality; everyone is a user. DeFi is the basis for future "Finance in DeSoc" at this time.
The bad news is that DeFi appears to be deeply involved in a quagmire due to the serial liquidations caused by high leverage, the false prosperity generated by circular lending, the deviation of the governance model "DAO", the operation of user funds in the dark box, and the abuse of the token mechanism, which is slowly approaching its darkest hour.
Nevertheless, Defi may be viewed as an outpost of "financial in DeSoc," with a pioneering attitude, exploring the subject of Web 3 finances to help decentralized finance extend its wings.
The present issue for Defi is that "the centralized world has altered Defi, which aims to revolutionize traditional finance." The underlying layer is not decentralized simultaneously, but "the front-end portal is decentralized, but the back-end is still managed by centralized institutions." On the surface, it appears to be a competition between DEX and CEX exchange platforms. However, the market maker may be the same centralized organization, thus there is no assurance that user funds will not be stolen regardless of which valve they flow through.
The finance in DeSoc will be completely decentralized. The funds on the chain will be transparent and the governance process will be open. For the first time, we will abandon all centralized gluttony and build a decentralized mainstream financial market that belongs to the future, to Generation Z, and to eternity. DeFi under DeSoc will be the fresh sprout that breaks ground and paves the way for the next wave of crypto innovation.
The whole research report consists of three chapters.
Part 3: Finance in DeSoc, a valuable opportunity for all for the benefit of all
All for the benefit of all suggests that the functions of brokers, exchanges, liquidity providers do not need to be clearly defined and that the general individual is free to design their trading strategies on their own. In other words, everyone can benefit from DeSoc's financial services while also making them more accessible to others. When it comes to DeSoc, financial services will become a routine part of everyday life, just the way they use short movies of today.
"Finance in DeSoc" has a long and bright future ahead of it. Even though just 4 million people have participated in DeFi so far, Uniswap's trillion-dollar transaction volume is a major step forward for DeSoc's fledgling form of financing. Further thinking, if DeFi represents the daily need of 7 billion individuals, we may no longer be able to accurately describe its value.
The answer lies in addressing DeSoc's financial woes. The real innovation is not the "marketing" initiatives like liquidity mining, governance token airdrops, and NFT awards, but measures that really meet the financial needs in DeSoc. For example, Bancor has created a new model of AMM; Uniswap has really carried it forward; Curve has been upgraded to a matching model, giving similar assets extremely high liquidity, which is enough to support the large-value exchange of stablecoins. In a nutshell, customers are motivated by profit and will quit with no profit if they don't get it.
Finance in DeSoc belongs to the basic needs of daily life. However, with the current foundation of crypto ecological development, whether it is value, faith support or the underlying and technical conditions, there is still room for improvement.
There is a solid value base for BTC and an unformed value base for DeFi, which means that BTC has the most solid supporters who will buy low at $20,000 in Bitcoin and become solid value support for BTC. Meanwhile, the value base for DeFi is still unformed and depends on the development of a series of supporting facilities under DeSoc, such as social graphs and credit systems and DIDs, as well as on further iterations of the blockchain, in order to build its own valuation system.
DeSoc's financial infrastructure is moving in the direction of a dedicated chain as a major source of innovation. DeFi has a strong requirement for transactional stability and efficiency, and this will help the underlying blockchain technology continue to evolve, from developing ecosystems to constructing initiatives that will objectively promote the polishing and emergence of high-quality products. To meet the need for high-time-sensitive project transactions, such as spot, derivatives, and synthetic assets, the public chain serving projects must be in high demand.
There is an increase in chain-specific innovation. Public chains still compete on security and efficiency, but building a public chain led by a major project and interacting with it can considerably satisfy the project's own needs as well as increase the market share of public chains. In the future, an increasing number of applications will opt to create their public chain. For example, dYdX left Ethereum and used Cosmos to set up its own application chain, which can be regarded as the second great innovation of DEX after the AMM mechanism.
Source : Unipass
DeSoc's financial infrastructure will have ubiquitous asset display. Assets in DeSoc's financial framework are our soul. The display of assets will be pervasive, displayable, and interactive. The Unipass project, for example, allows users to sign up for a crypto identity using their email address or an existing blockchain address; cryptography authentication can be performed for multi-chain addresses or even social accounts to the meta-universe by enriching their crypto identity; the platform will also integrate various reputation systems based on your crypto identity, allowing you to earn additional rewards when using specific dApps.
The presentation of assets will give you a better sense of what's important. Under the DeSoc system, the foundational piece of a broader economic system is DeFi, such as unsecured lending, which can only be used in conjunction with the on-chain credit system. DID, SBT and other elements can be used to build an inclusive financial system that adheres to the principles of UBI, decentralizes and suppresses the rich-poor divide, and uniformly creates DeFi for all. To put it another way, your asset display serves as your equipment arsenal for upgrading and fighting enemies while you trek through the jungle of the metaverse.
In a DeSoc financial infrastructure, the resolution of debt is mutual harm to mutual aid. Even in the current DeFi, financial transactions and debt conflicts are unavoidable. "When Su Zhu decides to sell his mansion, he refuses to pay his obligations. Su Zhu, a co-founder of Three Arrows Capital, has requested that his $35 million property in Singapore be transferred to a bank account in Dubai, but he has no intention of repaying the debt." It is an illustration of how debt settlement can be mutually destructive.
Source : FatMan
We could have prevented this catastrophe from happening. After 2008's financial crisis and until Luna's demise, centralized institutions have seen their wealth derived from user losses. To keep BlockFi viable, FTX is providing $400 million to the company. However, under DeSoc, we might have specified after the crisis which one loan went wrong, rather than directly causing the loan arrangement to collapse.
Mutual help is a wonderful answer to the problem. Both low-quality and high-quality assets are assessed as belonging to the institution in a centralized institution, and the institution's users are ultimately required to pay for them with high-quality assets. A "common debt" with equal rights and duties should be created in the DeSoc financial system, with the loss of income, investments, or negotiations with creditors.
DeSoc's financial infrastructure needs to be reversely stabilized by DeFi. Under DeSoc, deFi should be able to stabilize and even re-empower genuine assets, if necessary. When it came time for the MakerDAO community vote on the investment strategy allocation method for the 500 million DAI vault has ended, and the secone plan of 80% buying US short-term Treasury bonds and 20% IG Corp bonds, prevailed with 57.67% of the votes cast. Stablecoins, such as USDT/USDC, were the only ones in the blockchain that could make significant purchases. However, as the connection between DeFi and the current world grows, more protocols will follow the road of reversing the empowering of real assets.
Source : MakerDAO
Detailed laws on asset ownership and usage rights can open up new possibilities for asset use in addition to stabilizing real assets in the opposite direction. As an illustration, in some situations where the NFT owner and user aren't the same, EIP-4907 proposes that a rental market be established in the NFT field. You can design a module or prop once and use it as many times as you like in the metaverse. Some large modules are expensive, but they can be leased at cheaper prices to ensure that the originator's intellectual property rights are protected and that the NFT usage scenario can be expanded.
Frictional expenses are eliminated with the inclusion of DAO governance into DeSoc's financial infrastructure. DAO governance eliminates the need for expensive bureaucracies and regulators who charge exorbitant premiums or fees, resulting in virtually no friction in the financial system. As a result, individuals who use financial services can avoid paying any of the various service fees, such as intermediary fees and bridge fees, which are the fuel that drives the development of personal mutual markets.
Current "pseudo-DAO governance" must be scrutinized for its incoherence and potential for harm. The term "DAO" isn't synonymous with effective governance in all cases. The market is flooded with a wide variety of projects that demand careful consideration. The total locked-in value (TVL) of crypto assets on the Solana chain fell from slightly over $300 million to $265 million. At one point, USDT and USDC loan pools were used up to 100%, leading customers to have problems withdrawing their funds. Anxiously anticipating 'SLND1: Reducing the Risk of Gigantic Whales', Solend unveiled a new community governance proposal on June 19 to raise the liquidation barrier for users with big collateralized positions and take over a giant whale account that was ready to be liquidated.
It was a shock when the pseudo-DAO governance ended. After only 5.5 hours of hurried voting, the proposition was approved by a majority of 1.155 million people (97.5 percent) to a minority of 30,000 (2.5%). The proposal generated much criticism and was not well received by users, who were bombarded with queries, as a vivid illustration of "centralized institutions influencing decentralized systems," which is not what happened.
Source : Solend
An attempt is being made by solona to create a gateway to DeSoc's financial infrastructure via mobile devices. Solona plans to launch a smartphone that supports the solona network in 2023, which can directly run dApps. It's not just the web and wallet that DeFi will have to expand to more terminals in the coming years. Bringing DeFi devices into the public is a new direction as DeFi users get younger and more mainstream.
This is a significant moment in DeFi's evolution. A blockchain-based world that does not rely on the support of centralized institutions and covers all assest types and transaction scenarios will emerge. A high-speed network will be used to connect other cities, similar to Avalanche, but they will remain autonomous. Once this happens, additional sorts of play will be able to be copied, such as NFT, metaverse, leading to the emergence of DeSoc.
The financial infrastructure of the DeSoc revolution is well underway. DeSoc prophets are making their way across the river and expanding the number of real-world settings in which we can all be empowered.
All people for all people is once again the first driving force behind DeSoc's financial infrastructure. In a truly free decentralized society, everyone should have highly equal rights, not just community governance, voting, and participation rights... More importantly, a highly transparent source of information and unobstructed information channel.
In DeSoc, it is not that leverage does not exist; rather, it is that its usage must be made known. We only need to know which address is using it and not which subject.In DeSoc, it is not that finance does not exist, but rather that the organization of finance must be reconstructed, not in its existing pseudo-decentralization, but by enclosing the entire process.In DeSoc, every participant will know if the underlying assets underlying the platform are safe and secure, if the leverage multiples are within reasonable boundaries, if the institutions are fraudulent and malicious, if the assets have adequate liquidity, and if the privacy of individuals is ensured.In DeSoc, finance will be entirely decentralized. We shall for the first time abandon all centralized gourmets and construct a decentralized mainstream financial market that belongs to the future, Generation Z, and forever.
The black swans will eventually pass: all the beasts of today will be mere dinosaurs in the course of history, awaiting the fatal blow of decentralization; the current slump is only the darkness before dawn, and the ambitious and the builders are prepared to walk into the western world to witness the dawn of civilization.
The dawn is coming: only when centralized institutions move away from decentralized platforms and stop being behind the scenes will black swan event after black swan event be put to rest, and DeFi flourishes in the metaverse, ushering in the blossoms and igniting the flowers.
"At the time when the end man sees nothingness, the first people see only miracles."
Meeting the financial needs of DeSoc is the first stage, and the only people who can save DeFi are those who enter DeSoc for the first time. And DeFi, under the DeSoc umbrella, will emerge as the next wave of innovation in the crypto realm.
