Anemerging narrative is beginning to take shape about what went wrong for crypto in 2022, and centralization appears to be a significant factor.

Last year saw numerous disasters in the crypto industry, from the collapse of the algorithmic stablecoin TerraUST; the bankruptcies at the hedge fund Three Arrows Capital and the crypto lenders Voyager Digital and Celsius; and the high drama at the centralized exchange FTX. These mishaps were all linked by centralization and opacity — the problems crypto was supposed to combat. In the search for solutions, there has been renewed attention paid to decentralized finance (DeFi), the sector with the power to deliver on crypto’s promises of a financial system that works for everyone.

ThunderCore is going all in on DeFi

ThunderCore’s team has long been a proponent of greater decentralization in the blockchain industry. Indeed, we believe it’s the only way forward for crypto. That’s why we rolled out our ThunderCore 2.0 upgrade late last year, which overhauls our tokenomics and expands our system of validators, making it possible for anyone to help power our network. At the same time, we are finding a new revenue-sharing market with decentralized exchanges (DEXs).

With this foundation in place, 2023 will be a year of heavy DeFi expansion for our blockchain. We’ve been actively courting key players in the sector with an eye toward getting them to deploy on ThunderCore. With our super-low gas fees and ultra-fast transaction times, our EVM-compatible blockchain is a natural fit for the best DeFi projects.

Why ThunderCore is right for DeFi

ThunderCore is an ideal blockchain for DeFi with gas fees at a fraction of a cent and transaction speeds of over 4,000 TPS. While gas fees are often a primary concern for crypto users and developers in DeFi, transactions on ThunderCore are of negligible cost. It’s common for gas fees on Ethereum to reach over $100 for even a modest transaction.

ThunderCore is also a nurturing blockchain when it comes to developer talent. We value not just crypto but the people behind crypto, and that’s why we support them with various programs and incentives. We offer a $10M Developer Growth Fund to help guide promising projects through to completion, and our ThunderGene API tool makes it easy to integrate Web3 features into any app.

In the year ahead, ThunderCore will be rushing headlong into DeFi expansion, and we heartily encourage any and all developers who share our passion to join us.

Why is DeFi more relevant than ever?

When FTX began to fail in November 2022, its legions of customers from around the world found themselves without access to their funds; the exchange had suddenly halted withdrawals.

As crypto users everywhere began to think more about the perils of such crypto custody arrangements that could see their assets disappear overnight, DEXs saw a massive surge in interest, with tokens connected to DEXs pumping by 24% in mid-November.

The lesson was plain enough to see. There has always been an uncomfortable contradiction between crypto’s ethos of decentralization and its heavy reliance on centralized exchanges like FTX. Clearly, the future would involve storing assets on-chain and cutting out the middlemen.

Challenges for DeFi

DeFi has been no stranger to controversy. Its most serious problem has been with hacks — over $3B had been siphoned off DeFi protocols as of October 2022. However, the ecosystem has the capacity to overcome these issues, as the fate of the protocols is determined by the quality of the codebase.

Another area where DeFi has struggled is its approach to yield. When the sector made its first big splash during the “DeFi Summer” of 2020, extraordinarily high yields were held up through token emissions and VC funding rather than organic revenue generation. At times, yields even rocketed into the four figures. Users would hop between platforms in a practice known as “yield farming.”

In the current crypto landscape, such models have become unworkable. New models such as “real yield” are emerging, which offer a glimpse of a DeFi sector paying out sensible yields based on actual revenues.

The backbone of DeFi

While companies like Celsius rose and fell based on hype and business models that could not withstand market downturns, other entities in the DeFi space have shown themselves to be positive examples. ThunderCore is currently securing deployments for these protocols on our chain.

Curve Finance

Curve Finance is a DEX focused on efficient, low-cost stablecoin trading. Its innovative liquidity pool design allows for high-volume trades without affecting price and offers low slippage and high liquidity. In addition to trading, Curve offers DeFi services like yield farming, staking, and liquidity provision. The platform prioritizes security, emphasizing audits, and its governance model lets token holders vote on upgrades and changes.

Aave

Aave is a DeFi platform that provides a trustless and decentralized environment for lending and borrowing digital assets. Aave offers flash loans, which enable users to borrow funds without collateral for a short duration, while users can also earn rewards through liquidity provision. The platform emphasizes security and decentralization, with frequent security audits and a governance model that allows token holders a say in how the protocol is updated.

Compound

Compound is a DeFi platform that allows users to earn interest on deposits or borrow assets at competitive rates. Compound supports a wide range of digital assets, including cryptocurrencies and tokenized assets. Its automated market maker (AMM) algorithm sets interest rates based on supply and demand. Like Curve and Aave, it undergoes audits and gives its stakeholders power over its direction through governance tokens.

SushiSwap

Sushi is a community-driven organization focused on solving the “liquidity problem” of connecting disparate forms of liquidity with decentralized markets. It offers a range of decentralized products, including an exchange, lending market, yield instruments, auction platform, AMM framework, and staking derivatives.

Final thoughts

ThunderCore is the perfect platform to launch your next DeFi project. With our fast and secure technology and developer support, you’ll have all the resources you need to create an innovative and seamless user experience. We can’t wait to see what you’ll build on our network.

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