Vires Finance
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Summer is coming. Especially for DeFi. In the summer of 2020, the successful and widespread implementation and adoption of DeFi, and the recognition of its potential to revolutionise retail and institutional finance, precipitated a crypto bull run that, for many, is only just beginning to taper off.

DeFi in 2022

Cue 2022, and DeFi protocols have matured considerably. Although the early days of degenerate yield farms offering 1000% APR might be over, the halcyon days of above-inflation yield, robust and insured protocols, and - whisper it - regulated DeFi (or RDeFi) are just beginning.

Many analysts predict 2022 to bring a second DeFi summer. As institutions wake up to the enormous efficiency gains of the blockchain and those responsible for the management of vast asset pools can no longer justify not getting involved. As such, DeFi adoption is predicted to only grow in 2022 - even if the current bear market sustains.

Reasons Why DeFi Will Explode Again

This is for a few reasons. A bearish economy leads to less aggressive speculation and more of a move towards safer, more predictable yields. Crypto users are expected to lock more of their assets, taking them out of circulation, so that they can maintain portfolio health through sustainable yields rather than asset price rises. The recent bull run also brought a lot of new retail investors into the space. Although they may have started with BTC, Doge and some NFTs, in time these ‘gateway drugs’ will expose more people to the fact that, with DeFi, their money goes further and grows faster.

Moreover, the rise of ‘RDeFi’, or regulated DeFi, will lead to more capital inflows into DeFiprotocols. Institutions are demanding DeFi protocols that fit their needs, including KYC permissioned trading, insured pools, and AML safeguards. This capital inflow will spill over beyond such ‘regulated’ protocols, as DeFi becomes a norm that more and more crypto users are familiar with. Over one trillion dollars is expected to charge into the DeFi market over the coming years, with exponential effects on the market as a whole.

How Vires Is Best Placed to Dominate DeFi

There are scaling problems though. The race for L2 solutions is well-known. Chains like Avalanche are becoming their own DeFi hotbeds as users seek better long term solutions. The Waves blockchain, with its practically non-existent fees and exciting debutant Vires Finance, is one such solution that is catching attention, and seems perfectly placed to take advantage of this second summer DeFi.

Vires is a liquidity protocol that facilitates borrowing and lending on the Waves blockchain. In six short months, it has already racked up nearly $1.5 billion in TVL, and both it and parent blockchain Waves are defying the bear market and experiencing upward price movement as the rest of the market contracts. Waves, with its partnerships with juggernauts like Microsoft and Deloitte, is well placed to tap into this new institutional demand for DeFi, and the exceedingly low costs of doing business on the chain puts it a step ahead of mainstream rivals like Luna and Ethereum.

Get Ready for Summer 2.0

Vires Finance is currently offering above-market rates for suppliers, with lenders happy to pay for the integration it enjoys with the Waves ecosystem and the possibilities within it. For those staking Vires itself, they can enjoy a rate of 100% APR - paid out in a basket of cryptocurrencies including stablecoins - a rate that harkens back to when DeFi was just a twinkle in the crypto community’s eye. Expect Vires to continue to grow as Waves strides its way up the top 100 cryptocurrencies, and with the second DeFi summer about to arrive, it may be the perfect time to spring into action.