The new trends of defi that could solve the liquidity problem in a bear market

DeFi offers financial services designed to provide an open, decentralized alternative to traditional financial services such as lending, borrowing and trading. DeFi's services are designed to provide a more accessible financial system, as the central government has no control over it.

In recent years, interest in DeFi services has increased as they offer a more efficient and transparent way to settle financial transactions. DeFi services and protocols are still at an early stage, but the trends are promising.

As new projects are launched and more users participate, the DeFi ecosystem will continue to grow. At the moment, however, the DeFi sector has been hit hard by the bear market, as reflected in a drop in TVL and liquidity. According to DeFi Llama, the DeFi sector currently holds about $55 billion, a decline of 82% since November 2021.

The value of crypto assets has fallen 70-90% since their historic highs, which has also impacted DeFi's sector. For example, many DeFi projects are based on Ethereum, and the 50 percent drop in the Ethereum price since January has affected the liquidity volume of many projects.

The reduction in liquidity and drastic decline in assets has been a major blow to a sector that was already struggling to attract users and grow. The reason is obvious: the lack of liquidity makes it even harder for DeFi projects to survive, let alone move forward.

This is currently a major obstacle for the DeFi sector, which has already led to the closure or suspension of numerous projects, forcing investors to look for a safe haven for their money. For this reason, the possibilities for the development of the sector and especially for attracting liquidity are now being reconsidered.

Real returns

In light of the challenges facing the DeFi sector, a new trend is emerging: real yield, the ability to earn a share of protocol income. The real return is expressed in key crypto assets such as ETH or USDC, which can be accessed by holders of the protocol's governance tokens by locking or locking them into the protocol's smart contract.

There is some logic to this: as the value of governance tokens has fallen by 80-90%, and in some cases even more, DeFi projects now want to incentivize their participants with much more stable cryptocurrencies to profit from on Bit Index Ai, rather than participate in the dilutive issuance of their own tokens. The new real-return protocols pay token holders the revenue from commissions for their work.

So there's no denying that the days of high risk and high return in DeFi are coming to an end in these current times of liquidity shortage. More importantly, the dynamics in the DeFi space itself are changing, as new projects with lower but more sustainable returns are being added.

A prime example of this new DeFi trend to attract liquidity is the GMX minutes. It is a decentralized protocol and exchange that supports both cash trading and open-ended futures transactions.

Based on the proof-of-stake consensus mechanism, it allows users to earn rewards for their participation in the network. The protocol is designed for high scalability and efficiency and can handle large volumes of data.

The project has attracted attention recently as its own management token, GMX, came close to its ATH despite a bear market. In addition, the token has been listed on the major Binance exchange, indicating the importance and popularity of the project in the DeFi sector.

Since its launch in late 2021, GMX has gained liquidity and trading volume has increased. GMX's success is due to its unique revenue sharing model. 70% of the exchange's trading fees are paid to liquidity providers in the form of ETH on Arbitrum and AVAX on Avalanche. The remaining 30% of fees go to GMX stackers, who currently earn 14% per year for stacking GMX and much more for holding the token LP (GLP).