The CeDeFi Integration: A New Experiment
CeDeFi is the field we are actively exploring. Today, I will not discuss specific CeDeFi products but rather analyze this space from social, economic, and psychological perspectives. CeFi and DeFi have coexisted for years, with well-known strengths and weaknesses. The last market cycle saw DeFi projects, particularly those led by Western teams, shine brightly, driven by the dream of fully decentralized finance—a reflection of the heroism phenomenon discussed earlier. However, pure DeFi has proven unsustainable.
CEXs, predominantly controlled by Asian entities, excelled in product development and execution but faced challenges from DeFi and regulatory pressures in the last cycle. From a sociological standpoint, CeDeFi represents the integration of Western and Asian products. A notable example of this trend is how, in the previous DeFi wave, the power of Asian CeFi was overlooked, while CEXs had to beg for token listings. CeDeFi is a positive development, with Western teams adopting a bit less heroism and Asian teams introducing more innovation.
The significant shift in this cycle is the location of capital: on-chain activity is less active, while CEX reserves, led by Binance, have climbed to $100 billion. The essence of CeDeFi lies in leveraging this capital to create innovative products, thereby reigniting market enthusiasm and potentially ushering in the next bull market.
Finally, I leave you with this thought: "It’s not the appearance (external phenomenon) that traps you; it’s your attachment to the appearance that traps you."
