TechFlow News, Electric Capital partner Ken Deeter shared five major DeFi trends he is watching.
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First, convergence in lending markets — platforms such as Aave, Morpho Labs, Silo Finance, Euler Labs, Kamino, and Fraxlend are seeing their feature sets merge. Circular lending is now ubiquitous, and the focus will shift toward use cases, partnerships, and ecosystems.
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Second, rebalancing vaults — projects like Tokemak, Cove Finance, and Veda Labs generate higher yields for users while providing more efficient liquidity to markets and ecosystems.
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Third, term-based assets — initiatives including veTokens, Term Labs, Pendle, Hourglass, and Frax Bonds are all building market infrastructure for assets with fixed terms and maturity dates.
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Fourth, real-world assets (RWA) — such as stablecoins, treasury bills, and reinsurance — will become foundational pillars of on-chain economic activity.
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Fifth, restaking — exemplified by EigenLayer — the concept of putting any yield-bearing asset at risk to secure other protocols holds significant potential.
Ken Deeter noted that despite being in a bear market, teams continue building important new projects, which remains exciting.
