Just now, the data shows that the defi TVL has already caught up with the peak of the last bull market.

The composition of this round of defi leverage is very interesting.

Starting from 2022, the new compliance framework has made it so that compliant funds cannot enter exchanges. Several major exchanges have come up with a solution.

That is to do multi-signatures with funds. Then, the exchange gives you a 1:1 mapping of happiness beans. Regular settlements. If you win, they compensate you; if you lose, they deduct from the multi-signature. At this point, Binance's regular asset disclosures began to include an additional custodial asset that is neither a cold wallet nor a hot wallet outside the exchange.

Riding on this compliance framework, exchanges that accept compliant funds can be called first-tier exchanges!

Thus, the first windfall emerges: multi-signature wallets!

I am very, very sorry; I really tried hard. Our OB mpc wallet did not squeeze into this track; we missed the timing.

Then, after several natural evolutions, we have arrived at the current version of stablecoins.

Based on the above framework, now you can use 1 USDT to mint a certain stablecoin from the project party.

The project party then takes your money to the exchange for delta-neutral hedging arbitrage. (I have indeed talked about this arbitrage strategy https://x.com/maid_crypto/status/1923192313628721281) Of course, there are also many derivatives like US treasuries, JLP, and futures, in short, the money was taken away by the project party for arbitrage at the exchange.

In this way, 1 yuan in the industry has at least turned into 2 yuan. If you then collateralize this newly minted stablecoin to earn interest, 1 yuan can turn into 3 yuan. This is what is referred to as the re-collateralization track.