Welcome back to the third episode of Mantle’s DeFi Uncovered series with Ecosystem Research Team Lead Derek (@0xavarek) and fellow team member Edmund (@Defi_Maestro). This time, they discussed various aspects, including growth opportunities, decentralized stablecoins, web3 advantages, yield sources for RWAs (Real World Assets), sustainable DeFi, liquidity proposals, ecosystem composability, the potential for web3 social enhancement, and more. Here's a recap of the key highlights from the episode.

*Some sentences have been edited for clarity and brevity.

Exciting Growth Opportunities in DeFi

Derek: Can you share your thoughts on the current state of DeFi and the opportunities that lie ahead?

Edmund: Absolutely, I believe we're witnessing a resurgence of growth in DeFi. Many blockchains are actively pursuing expansion, and there's a strong desire to push the boundaries of this ecosystem.

In the coming months, we can expect a wave of incentive programs to benefit users participating in DeFi, offering enhanced returns.

The Rise of Decentralized Stable Coins

D: You also mentioned the potential rise of decentralized stablecoins. Can you elaborate on this trend?

E: Decentralized stablecoins have faced skepticism due to past failures. However, a new generation of stablecoins is focused on sustainability and resistance to censorship. For instance, Libra V2 and ST Euro are gaining traction. New stablecoins like USDO and Athena are also making waves with innovative mechanisms for sustainable yields.

SocialFi Protocols and Web3 Advantages

D: Moving on, you discussed the advantages of web3 in regard to SocialFi protocols. Can you highlight some key benefits?

E: Web3 offers censorship resistance, a crucial feature for platforms susceptible to government interference. Additionally, it allows for rewarding users with tokens, airdrops, and revenue sharing, which can be challenging for web2 platforms due to regulatory concerns.

Quality Yield Sources for RWAs

D: Regarding RWAs, there's a shift towards quality yield sources. Do you see a move away from traditional sources like T-bills and bonds?

E: In the short term, T-bills and bonds will likely remain primary sources of revenue for RWAs. Tokenizing them for stablecoins is in a gray area due to slow regulatory progress. Complex assets like real estate may become RWAs, but it will take time and regulatory clarity.

Liquidity Bootstrap Proposal for Mantle Treasury

D: What's the significance of the liquidity bootstrap proposal for Mantle Treasury?

E: Liquidity is vital for DeFi ecosystems. MIP-26 outlines our commitment to supporting protocols within Mantle Ecosystem by providing liquidity. This proposal, with a substantial value, demonstrates our dedication to builders and ensures deep liquidity for users.

Deployments and Mantle Ecosystem Composability

D: Could you tell us more about upcoming deployments and composability in Mantle Ecosystem?

E: We're set to invest in vetted protocols from our EcoFund. These products offer tangible use cases and sustainability. Niche markets, such as prediction markets and SocialFi applications, will be deployed aggressively. Discussions on composability integrations are already underway, making the future promising.

Building the Future of DeFi

D: If you could build anything within the DeFi space, what would it be?

E: Building the future of DeFi is an ongoing thought. It's an exciting space with endless possibilities. I think something along the lines of having a PVP trading market. You can think of it as a SocialFi dApp that has tangible numbers attached to it, and it is something that I think will make the space a lot more fun.

Enhancing Web3 Social

D: Finally, how will the web3 identity stack enhance web3 social compared to web2 social?

E: Web3's identity stack offers unmatched transparency through blockchain data. It can reveal information web2 cannot access due to certain well-known limitations.

Mantle's DeFi plans are filled with innovation and sustainability, from decentralized stablecoins to liquidity bootstrap proposals. The focus on sustainable yield and composability within Mantle Ecosystem demonstrates a commitment to building a robust DeFi ecosystem. As the ecosystem adds more protocols in the future, stay up to date on our ecosystem page and our X/Twitter to track what you can do on Mantle Network.