Bolide Finance positively evaluates the state of the DeFi sector

Bolide Finance analysts believe that the DeFi sector is showing positive returns for investors amid the current crypto winter and falling trading volumes. The experts analyzed the profitability of several DeFi protocols from January to July this year.

During this period, the Acryptos project showed a yield of approximately 6,4%. Earnings peaked at 12,55% in the first month of 2022.

DeFi platforms with positive average returns in the first 7 months of this year also included Autofam (1.2%), Beefy Finance (3.75%) and Killswitch (0.17%). The profitability of DeFi PancakeSwap reached 265.12%, thus the project outperformed other platforms in this indicator.

Analysts at Bolide Finance concluded that profitability in DeFi indicates a change in investor strategies, likely an attempt to resist the extended cryptocurrency market correction seen this year. Market participants are trying to trade less and focus on generating stable income in anticipation of a new market rally.

Swiss National Bank board member Thomas Moser recently opined that Central Bank Digital Currencies (CBDCs) would help bring more stability to the DeFi industry. He is confident that centralization and decentralization in the context of digital assets “can work together.” As an argument, the expert pointed to USDT and USDC tokens.

At the same time, Moser clarified that CBDC outperforms stablecoins, as it “does not entail counterparty risk.” He noted that cryptocurrencies like BTC and ETH, due to their high volatility, are not suitable to support the sustainable growth of decentralized finance.

“Algorithmic stablecoins also do not involve counterparty risk, but so far, we have not seen successful [projects]. CBDC can provide more stability and less risk,” the expert emphasized.

Recently, Fed Chairman Jerome Powell also spoke about DeFI. He believes that there is an urgent need to create an effective regulatory mechanism for this sector due to the “conflict of interest” with traditional finance.

“We are witnessing the winter of DeFi, and this is good news. This suggests that decentralized finance has its weaknesses, but this state of affairs will not last indefinitely. One way or another, the industry is expanding and reaching more and more retail customers. Therefore, this time should be used to thoughtfully and carefully develop regulatory requirements for DeFi,” Powell said.

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