One of the most successful innovations to come out of blockchain technology is the introduction of decentralized finance. Decentralized or DeFi is a broad term used to catalog the decentralized applications that integrate traditional financial services into the crypto world. Decentralized finance applications and protocols are constantly evolving to integrate emerging trends. Over the last few months, the DeFi industry has seen a sudden influx of liquidity-focused decentralized finance projects introducing a new generation of DeFi called DeFi 2.0. Introducing DeFi 2.0 DeFi 2.0 is a new phrase used in the blockchain world to refer to the subset of DeFi protocols built on breakthroughs such as yield farming. Several on-chain systems powered by native tokens are experiencing new development in liquidity due to DeFi 2.0. DeFi 2.0 aims to capitalize on the first generation of DeFi products that establishes an initial user base before developing the primitives for the construction of DeFi apps. It rectifies the new trend of creating dApps in a business-to-business focus and takes the utility back to the users, which was the initial intention of decentralized finance. Moreover, DeFi 2.0 acts as the catalyst to promote emerging market trends and solve the biggest challenges, such as the rising Ethereum gas fees. DeFi 2.0 deploys a two-layer solution with expansive scalability and introduces a new wave of decentralization that has iron...
