“DeFi 2.0” appears to be the latest trend, and it has recently gained a lot of popularity.
The experiment focuses on new liquidity mining designs and is frequently related to protocols owning their liquidity rather than renting it out for a fee via liquidity mining incentives.
Bonds have become popular in the past few months as they can be a very useful tool to add liquidity when used properly.
Bonds also solve several key liquidity challenges for protocols, which traditionally set aside a large percentage of their native token supply to incentivize liquidity providers (LPs).
Growth DeFi Teams Up with Olympus DAO to Bring Bonds to Its Ecosystem
Growth DeFi is a decentralized finance ecosystem to enable capital efficiency and assist investors in maximizing their returns through a variety of products.
Growth DeFi is a multi-chain ecosystem that focuses on boosting stakeholders’ value while also ensuring the market’s maximum yield.
In a drive to own its Liquidity, Growth DeFi joins the first Avalanche Cohort of Olympus Pro to bring bonds into its ecosystem, with the GRO/MOR, WHEAT/MOR, AVAX/MOR bonds added on December 1.
Asides from Growth DeFi, the Olympus Pro Avalanche Cohort includes Pangolin DEX, Benqi Finance, and Yield yak.
After thorough consideration of its expansion possibilities, Growth DeFi chose to go cross-chain on Avalanche in October.
Olympus Pro, a new service from the Olympus team, allows other protocols to use the OlympusDAO bonding mechanism by selling bonds on a dedicated marketplace.
Investors will be able to use this marketplace to purchase discounted tokens of various protocols in exchange for other assets, which will then form part of the protocols’ treasuries.
This also helps the protocol, in this case, Growth DeFi, to take ownership of its liquidity instead of having to rent it by paying continuous incentives to external LPs not to leave the pool.
Benefits resulting from this include added liquidity for buying and selling GRO and WHEAT, more MOR in circulation, reliable liquidity regardless of market conditions, and even more.
The Long Term Paths
Growth DeFi is approaching a new era of DeFi 2.0 as the aim of bonding is to create as much liquidity depth for GRO as possible.
Asides from native liquidity, Growth DeFi plans to use bonds for many other things including boosting WHEAT Exponential Buyback Collectors (EBC) and adding MOR trading pairs.
WHEAT is the incentives token of the Growth ecosystem.
Going forward its focus will be on deepening the liquidity of MOR and acquiring different yield accruing tokens that increase the value of WHEAT’s treasury and the backing per token. Olympus Pro bonds will be used for this purpose.
Though the concepts underlying DeFi 2.0 are still forming, the concept alludes to a new breed of DeFi protocols that experiment with protocol design and tokenomics to tackle some of the primary weak points of existing initiatives.
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