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- Tezos is waiting for the completion of its own DeFi platforms.
- Two projects are based on Uniswap.
- DeFi would be an additional use case that could help XTZ become more relevant.
While the actual DeFi hype still finds its focus on Ethereum as a platform, two projects are preparing their protocols relatively quietly. These should enable DeFi based on Tezos.
Uniswap serves as a blueprint, because the DEX is the linchpin for the entire market. With DEXter there could soon be a candidate who will lead Tezos into the DeFI era. DEXter was supposed to start in May, but then the release was postponed because the developers encountered a number of problems. Only one beta is available yet.
The second candidate is Quipuswap, which runs on the Carthage Testnet and, like DEXter, still has to be forged there so that the product can ultimately be ready for the market. At the moment it looks like DEXter could probably start earlier than Quipuswap.
Tezos needs structures
In the end, it doesn’t really matter who wins the race. Because Tezos not only needs a suitable DEX but also a connection to suitable stablecoins.
So far only USDtz is available and with tzBTC at least a tokenized form of Bitcoin. The basics would therefore be met, but are not compatible with what the market primarily demands. It remains to be seen whether the demand for the in-house USD stablecoin could change when you go to the market with a DEX.
The fact that Tezos has what it takes to become an important DeFi platform is reflected in the weaknesses of Ethereum.
Ethereum scales poorly
Admittedly, the utilization for Ethereum hasn’t been as high as it was during the DeFi boom in a long time. The high fees that have to be paid for DeFi applications are particularly problematic.
This primarily concerns the interaction with the logs and normal transactions. A problem that could be solved by Tezos, even if XTZ is admittedly not the only candidate that could technically.
It has been proven that one can already offer good solutions in the field of STOs. Now it is a matter of convincing in this area too.
DeFi is the engine of the market
You can think what you want of the prevailing mania and the constant alternation of emerging and dying DeFi protocols. The fact is that this is where most of the money is currently invested, and therefore the greatest interest.
This is important because it is already foreseeable that the dust will settle at some point. Then the many questionable market participants will be gone, leaving only those who offer real added value and are sincere. ICOs also went through a very similar metamorphosis before arriving at the STOs.
So if you want to have the option of offering excellent solutions in the future, you have to enter the phase now and bring them to market to see how they perform.
Tezos course could be given wings
If the big hit would succeed and Tezos manages to overtake Ethereum or at least can book a decent market share, this fact should also be reflected on the course.
Not every use case automatically brings fresh money with it. At DeFi, however, there should be enough liquidity in play to speculate that the introduction of corresponding protocols will also have a positive effect on the price development of XTZ.