At 18:30 on Jan 27, XT Exchange and BISHIJIE.COM jointly held an AMA titled ‘Parallel Universes: 2017? 2021?’, with Weber (XT.COM CEO) as our host and star projects including Aave, ZEN, KAVA, Atoken, XWC and Avax as our honored guests. We have a heated discussion of topic including current development, future prospects and investment orientation.
During the event, as the head of KAVA China Marketing (KAVA, one of the star projects in DeFi zone), when asked about "the layout of the DeFi track in 2021", Ticky said "Kava has provided lending services for mainstream digital assets of $100 million in 2020. Kava will step up the construction of the DeFi ecosystem in 2021". In terms of underlying technology, Kava as a Layer 1 hub has begun to provide developers with various application modules (such as oracle services, cross-chain functions) and Kava API interfaces. At the product level, while integrating the industry, Kava is also accelerating the development of AMM applications, robo-advisory solutions and staking derivatives in the its ecosystem. For the security of funds, Kava is also integrating the third-party insurance agreement Certik and creating its own SAFU (Secure Asset Fund for Users)".
(Q: Weber, CEO of XT A: Ticky, Head of KAVA China Marketing)
Q:
Hello everyone, I am XT.COM CEO Weber. Thank you for being here. The AMA is titled ‘Parallel Universes: 2017? 2021?’, and we are happy discussing the market prospect and chances in 2021 with Ticky. I hope we can bring a lot for you guys through the AMA.
XT.COM, as currently the top 50 trading platform on CMC and the top 20 on Coingecko, was founded in 2018. XT has insisted on discovering value currencies for users since its establishment and providing users with value transaction targets. In 2017, we all experienced the myth of a bull market. At the beginning of January 2017, the total market value of cryptocurrencies was only $18.2 billion. Till the beginning of January 2018, the market value of cryptocurrencies exceeded $779.2 billion, an increase of more than 42 times. On January 10, 2021, the total market value of cryptocurrencies exceeded $1.1 trillion. Will the myth of 2017 emerge again in 2021?
Well, Ticky, would you like to introduce yourself and your project?
A：
I’m Ticky, responsible for Kava’s market operations in China. As the world’s first project to support cross-chain DeFi applications and services, Kava released the its cross-chain lending application and HARD Protocol currency market in June and November last year, supporting the cross chain services of mainstream digital assets such as BTC, XRP, BNB, and BUSD. We currently have locked assets are about US$100 million. At the same time, we also use the Kava Layer 1 Network based on the Cosmos SDK to provide more DeFi applications and developers with financial service infrastructure such as oracle data, cross-chain functions and assets, and more decentralized cross-chain bridges. .
Q:
In 2020, Bitcoin hit a record high, bringing prospect to investors. So could you share your opinions on the trend in 2021?
A：
In 2020, Bitcoin will set a new high under the influence of the international financial environment and institutional forces. This year, the overall market development will be more diversified. Kava's main layout is the DeFi ecosystem, so I will briefly talk about it from this track.
First of all, the underlying infrastructure of DeFi products is rapidly being established and is migrating to modular features. The Layer 1 public chain including Kava has begun to provide developers with various application modules (such as oracle services, cross-chain functions) and API interfaces, and the aggregation between all DeFi applications is strengthening.
At the user level, the rich DEX products are also stimulating the market’s demand for transaction efficiency and capital utilization. Take Kava as an example. While integrating with the excellent Layer 2 derivatives platform Injective, we are also stepping up the development of Kava, such as AMM’s ecological applications, smart investment advisory solutions and staking derivatives, providing users with more attractive investment paths on the basis of low handling fees and efficient cross-chain transmission.
At the same time, we have seen the layout of DeFi of centralized exchanges in the second half of 2020. Binance, Huobi, OK, etc. are exploring the integration of CeFi+DeFi from various perspectives such as building their own public chain ecology. What Kava do is to fully embrace integration. In the middle of 2020, we integrated with Binance to develop innovative DeFi Staking products to minimize user cross-platform and even cross-ecological friction and allow users to experience the convenient front-end CeFi operations, while enjoying the high yield of DeFi. Next, we will further this integration method to achieve a win-win relationship.
Finally, another resistance to the development of DeFi in 2020-the security of funds will also be improved. While Kava is integrating the third-party insurance agreement Certik, it is also creating its own SAFU funds, so various platforms and even users' awareness of fund security will quickly improve.
Q：
We can say that the market in 2020 started with DeFi. KAVA is a star project in the DeFi field. Do you think DeFi will take the lead in the market of 2021?
A：
Of course, DeFi on Ethereum will become a 100 billion-level ecosystem in 2020, and the Cosmos IBC cross-chain communication protocol is also about to emerge. The interoperability of DeFi aggregation products can lead the market to grow and iterate more quickly.
We see that large traditional institutions such as Grayscale Investments, MicroStrategy, and PayPal are opening the door to the crypto world for their users. All new funds will initially be concentrated in the field of investment and payment, but will slowly flow the place where the rate is high. And, DeFi is one of the choices. However, these traditional institutions do not have too high blockchain technology content, or they are not interested in exploring the blockchain, a relatively small niche market (in the traditional financial world). This is why Kava wants to build the DeFi bottom layer infrastructure and API interfaces. We can package multiple DeFi applications together for centralized exchanges, and provide investment institutions, and even banks with available financial tools according to their demands to quickly integrate .
From my point of view, this is the future of DeFi. Of course, all this will take time, but this is the only way for us to develop from current niche crypto industry and DeFi market to a more mainstream and broader retail finance.
Q:
Compared with 2017, in the market of 2020, we obviously feel that in terms of currency prices, the performance of other public chain tokens except Bitcoin remains sluggish. Could you please talk about what will public chain technology and public chain tokens bring us in 2021?
A：
I believe that DeFi and public chains will be more widely adopted on the basis of continuous improvement in scalability and interoperability. This is also a positive direction for the entire industry to move forward. But at the same time, challenges are inevitable. The biggest problem with public chains is security. The more layers there are, the more difficult the security and auditing of the blockchain will be.
Another challenge is that although DeFi aggregation products can lead interoperability, the barriers to certain protocols may still be high. If users cannot use transaction data through multiple Layer 2 or cross-chain, then the purpose of interoperability and DeFi aggregation products is violated.
DeFi is an emerging industry, so we still have a long way to go.
Q:
Compared with 2017, which segments do you think blockchain investment will focus on 2021?
A：
Cross-chain, DEX, insurance and solutions to Layer 2 under DeFi are all promising subdivisions. If NFT can de-IP, its ecological development also worth our expectation.
The above are the main points brought by KAVA, and I also anticipate to bringing you more next time.
About XT.COM
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XT.COM is building towards garnering loyalty and bring new potential for the development of the entire blockchain industry. To achieve better development, it is necessary to break the tradition with a fresh model.
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