Traders seem to expect BTC’s momentum could slow down a bit after the price hit over $97,000.

Positive sentiment has continued to fuel the cryptocurrency market as the expectation of further institutional adoption of 

 keeps growing. Options trading of BlackRock’s Spot Bitcoin ETF IBIT 

 with a bang, attracting almost $2 billion on the first day of trading. The hope of more spot ETF derivatives to change the market structure with additional institutional money onboarding crypto is high.

, we explored the possibility of the market being overleveraged, which could be painful if the current leverage unwinds. Data from CryptoQuant shows that the estimated leverage of the current BTC markets has reached another YTD high.

Derivatives data on Bybit shows that traders seem to expect that BTC’s momentum could slow down a bit after the price hit over $97,000, and are focusing more on downside protection.

Figure 1: Bitcoin estimated leverage ratio at 0.23. Source: CryptoQuant

BTC Options Open Interest Returns to Previous High While Perps Are Catching Up

Derivatives traders have been actively participating in BTC markets as 

 on Bybit has surged to over $3 billion, on par with the previous high on Nov 14, 2024. Although the options OI has increased, it still hasn’t surged above the previous high. At the time, BTC’s price had already jumped to over $97,000. If the OI doesn’t follow suit and break above the previous high in the coming days, this could be a sign that the market could become a bit exhausted — something for all market participants to be aware of.

Figure 2: Daily open interest for BTC options on Bybit. Source: Bybit

 have also seen increased open interest in recent days. Perpetuals have been among the most favorable products for day traders and short-term speculators. Rising open interest could indicate that more traders are looking for short-term profit, which could bring additional volatility to the market. 

Figure 3: Daily open interest for BTCUSDT Perpetuals on Bybit. Source: Bybit

Dec 27, 2024 remains the most popular expiration date for BTC Options on Bybit, with most of the open interest there. Within that expiration, $120,000 calls had the most OI, and $100,000 calls accumulated the second-largest OI. 

Figure 4: Open interest by strike for BTC Options with a Dec 27, 2024 expiration. Source: Bybit

Meanwhile, the market’s optimism that BTC will hit $100,000 by the end of the year seems to support the current price momentum. Shorter-dated options could show that traders are also looking for downside protection. The Bybit 

 page shows that BTC Options with a Nov 29, 2024 expiration have a strong 24-hour inflow to $90,000 puts. This could indicate that some traders are also anticipating some degree of price correction by the end of the month. 

Figure 5: 24-hour volume by strike for BTC Options with a Nov 29, 2024 expiration on Bybit. Source: Bybit

 for BTC Options on Bybit also indicates a possible downside protection in play among options traders. A smirk skew, or left skew, is a skew curve that’s steeper on one side (the left side) than the other. Traditionally, a smirk skew curve could mean that traders have been protecting their portfolios against a possible declining market. At the time of this writing (Nov 21, 2024), BTC Options contracts on Bybit with Nov 29, 2024 and Dec 27, 2024 expirations have both shown a smirk skew. However, this doesn’t necessarily mean traders are bearish on the price, and could just be part of the trading strategy. For example, traders could set up collars by buying out-of-the-money (OTM) puts and selling OTM calls simultaneously, so that they can profit in case BTC’s price drops, gain upside exposure and potentially offset the cost of buying the puts. 

Figure 6: Implied volatility of BTC Options with Nov 29, 2024 and Dec 27, 2024 expirations. Source: Bybit

The current BTC leverage trading may be complex, but tells a revealing narrative about market sentiment. The divergence between high leverage and increased hedging activities also reminds us that market dynamics are rarely straightforward, and adopting a 

 seems increasingly important in this diverse market.

: Investing in cryptocurrencies and their derivatives involves substantial risk of loss, and isn’t suitable for every investor. This article provides facts for educational purposes only, and does not represent any financial advice. Prior to making any investment decisions, please ensure you fully understand the risks involved and seek independent advice if necessary. Our customer support team is available to assist you with any inquiries.

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Learn From Smart Money: BTC’s Leverage Remains High as Traders Hedge Against Downside Risks

Our weekly crypto derivatives analytics report dives into macro events, the current state of crypto and trading signals from spot trading volume, and futures, options and perpetual contracts.

Spot prices have jumped significantly in the two weeks following the November 5, 2024 U.S. elections, propelling Bitcoin to new all-time highs, while Ethereum hasn’t kept pace. The implied volatility term structure has inverted again in tandem with these spot price movements, although longer-dated tenors remain relatively stable. Derivatives market indicators reflect strong positive sentiment: perpetual funding rates are consistently positive, open interest in futures contracts is rapidly increasing and options skew remains firmly positive.

Open interest in futures has surged, indicating heightened market participation and a growing interest in leveraged exposure due to recent price movements. Similarly, open interest in perpetual contracts has sharply increased, fueled by rising trader confidence and a growing demand for leveraged positions in light of recent market rallies. Meanwhile, the implied volatility term structure continues to invert in alignment with spot price increases, demonstrating a sustained correlation between spot prices and volatility.

Please check out the report’s highlights.

Futures Open Interest Reaches ATH Along With Price

Perpetual swap open interest has been increasing alongside futures, with a consistent rise in open positions over the past week reaching all-time high activity levels. This trend suggests that traders are actively pursuing leveraged exposure in response to the ongoing spot rallies, aiming to capitalize on the rising spot prices. Notably, there’s been renewed interest in Ethereum (ETH), reflected in rising trading volumes. 

Perpetual swap funding rates have reached exceptionally positive levels, indicating that long positions are confident enough to pay these rates to sustain their leveraged exposure. This trend has consistently been observed across all tokens, with a noticeable rise in funding rates since Nov 10, 2024. The persistently high funding rates highlight the strength of the bullish sentiment, which is also evident in the increasing open interest in futures contracts. This aligns with the recent spot price action, demonstrating significant upward momentum.

Option Volatility Term Structure Inverts 

The implied volatility term structure for Bitcoin has inverted amid the recent spot rallies over the past few weeks, indicating heightened market uncertainty and expectations of imminent price movements. However, levels haven’t exceeded the highs seen before the elections, and longer-dated tenors remain firmly range-bound. Concurrently, open interest in Bitcoin options has risen significantly, with a notable increase in put trading volumes. Open interest in puts has slightly surpassed calls, despite the persistently bullish market outlook indicated by the volatility smile skew.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Nov 20, 2024): Market Becomes Extremely Positive About Bitcoin as Volatility Curve Turns Invert

Learn how to join Bybit's VIP Program, where you can realize exclusive benefits — from up to 50% off trading fees and tailored interest rates to instant OTC trades up to $10M.

With the Bybit VIP Program, you can realize exclusive benefits — from up to 50% off trading fees and tailored interest rates to instant OTC trades, Bybit Card cashback and more. Joining the ranks of the very best traders on the platform will boost your profitability, raise your limits and offer access to VIP-only perks.

 and guides you through the steps to become a VIP trader and unlock exclusive benefits. Let's get started!

 is an exclusive club for the most esteemed traders in the crypto market. It’s designed to provide members an enhanced Bybit experience with numerous VIP-only benefits and perks. The program aims to reward avid traders who have high volumes, account equity levels and borrowing activities.

The Bybit VIP Program offers a multitude of benefits for members. These range from discounted trading fees and high limits for withdrawals and application programming interface (API) trades to priority Bybit customer support access, relationship managers and exclusive VIP events and meetups. You can find the full list of VIP exclusive benefits 

Requirements to Become a Bybit VIP Trader

You’ll need to fulfill a specific level for one of the criteria below to become a VIP trader on Bybit:

Bybit's VIP Program features six distinct tiers: 

. Each successively higher tier offers greater rewards, and also comes with more stringent qualification requirements. For instance, as a 

 trader, you’ll enjoy reduced trading fees, such as 0.03% for makers and 0.045% for takers in the spot market. To qualify for this exclusive tier, you must meet at least one of the following criteria:

Once you become a VIP trader, you must continuously meet the above criteria to maintain your Bybit VIP status and keep enjoying the benefits. 

However, this doesn't mean your account will immediately lose its VIP status and revert to standard after a single day in which you don’t meet the requirements. Bybit offers a 14-day grace during which you can continue enjoying VIP perks and benefits, even if you no longer meet the program's conditions. If the criteria are not met by the end of this period, your VIP status will automatically be revoked. However, if that occurs, you can regain your status by fulfilling the requirements for any VIP tier either during or after the grace period. When this happens, Bybit will grant you a new 14-day grace period.

How to Sign up to Become a Bybit VIP Trader

In the following section, you'll find a step-by-step guide that shows you how to join the Bybit VIP Program.

The first step to becoming a VIP trader is to open a Bybit account (if you haven't already done so). Simply 

 and fill out the form with your details. After registering, you’ll need to verify your account to enjoy the platform's full functionality.

Next, fund your Bybit account with crypto or fiat currency.

You can deposit cryptocurrencies by using the 

 menu. On the page, choose your desired coin and the blockchain where you'll be depositing the assets. To avoid any loss of funds, please always ensure that you're transferring crypto from the correct chain.

Next, copy-and-paste the wallet address displayed on the page, or scan the QR code with your smartphone's camera, and initiate the deposit from your wallet. After a few confirmations, your cryptocurrencies will be credited to your Bybit account.

To fund your Bybit account with fiat currency, click on the 

 button and select one of the available services (e.g., 

 service, choose a fiat currency, the deposit amount and one of the available payment methods. After clicking on 

, follow the instructions displayed on the next pages to initiate the transaction. Your funds will be credited to your Bybit account, with processing times varying according to your chosen service and payment method.

After you have a verified Bybit account funded with either crypto or fiat, perform eligible activity on the platform until you qualify for VIP status (see table below).

You can achieve VIP status by fulfilling a minimum level of VIP 1 in either of the following categories (

After becoming a VIP trader on Bybit, don't forget to maintain your VIP status to continue enjoying the exclusive perks and benefits.

If you have active VIP status at another crypto exchange, or your total MT5 trading volume meets Bybit's VIP criteria, you can apply for a VIP+2 upgrade. This upgrade will grant you VIP status on the platform — and instantly elevate it by two levels. (Please 

 that Bybit only considers 10% of any MT5 forex trading volume.)

 and submit your 30-day trading volume on your current exchange. Bybit’s VIP team will review your application, and a Relationship Manager will contact you if you're eligible for the VIP upgrade.

How to Get Started With a 20-Day Bybit VIP Trial

Another way to qualify for VIP status on Bybit is through a 20-day trial. Instead of fulfilling the requirements of the VIP 1 level, simply fund your account with $50,000 to enjoy the exclusive benefits of the program for 20 days with a VIP Trial Card (issued one day after your deposit). The VIP trial offer is available to users who haven't used a trial within the past two months.

To unlock the 20-day VIP trial, head to the 

 menu on Bybit and use one of the available payment methods to fund your account with $50,000 in assets.

With VIP Level-Up Tasks, you can earn generous bonuses as high as 6,000 USDT. You can claim rewards for Level-Up Tasks for five VIP levels (VIP 1, VIP 2, VIP 3, VIP 4 and VIP 5), with higher tiers offering greater bonuses upon completion.

If you're eligible, you’ll see a pop-up window with VIP Level-Up Tasks after you log into your account. To claim your rewards, complete the specified trading volume requirement within 14 days of receiving the task, and click on the 

 page. You can learn more about Bybit VIP Level-Up Tasks

Exclusive Trading Benefits Offered to Bybit VIPs

As a member of the Bybit VIP Program, you can unlock exclusive benefits to supercharge your trading experience. Among these are discounted trading fees (which can significantly boost your trading revenue), profitability and chances of winning trades.

In addition to discounted trading fees, you’ll also enjoy substantially higher API trading and withdrawal limits. While the former is restricted to 10 trades per second for non-VIP users, you can take advantage of up to 120 API trades per second as a VIP trader. Simultaneously, your daily withdrawal limit is increased from the basic 1 million USDT to as high as 12 million USDT.

 is an exclusive club that provides an enhanced service experience for the most esteemed traders. As a member, you can access a multitude of exclusive benefits and perks, such as the following:

Are you ready to supercharge your trading experience? 

Intermediate

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How to Become a Bybit VIP: Your Guide to Exclusive Benefits

LETSTOP is a drive-to-earn mobile app that monitors phone distractions while driving. Learn more about how it works in this article.

Smartphone distractions have created an unprecedented road safety crisis worldwide. 

: texting behind the wheel makes drivers six times more likely to crash than drunk driving does — yet millions of drivers still use their phones while operating vehicles.

This article explores how LETSTOP is transforming safe driving into rewarding experiences through blockchain technology. We'll examine its drive-to-earn model, reward system, tokenomics and potential as both a road safety solution and an investment opportunity.

 is a drive-to-earn mobile app that monitors phone distractions while driving. Users earn STOP tokens for phone-free driving through a gamified system that transforms daily drives into rewarding experiences.

A life-changing car accident caused by a distracted driver running a red light inspired LETSTOP co-founder Almog Nissan to reimagine road safety. Together with co-founder and CEO Dor Levy, they envisioned rewarding safe driving, rather than just punishing dangerous behavior.

The founders built a platform that combines automotive technology, cryptocurrency and AI to revolutionize road safety through rewards. This innovative approach has quickly gained traction, with over 50,000 users logging over 3 million kilometers of safe driving since the app’s launch.

Distracted driving claims thousands of lives annually, with 

, of which 9% are directly linked to phone use. LETSTOP aims to tackle this crisis as follows:

Each of these objectives works harmoniously to support LETSTOP's ultimate mission of transforming road safety into a rewarding experience that benefits both individual drivers and society.

The LETSTOP app operates through a sophisticated system that monitors and rewards safe driving through the following apps and features:

The result is a dynamic system in which better driving habits unlock greater earning potential.

The following five core features power LETSTOP's drive-to-earn ecosystem.

LETSTOP uses a dynamic 40-level system to make safe driving rewarding. As drivers earn XP through distraction-free journeys, they advance from Level 1's 2% bonus toward Level 40's 70% boost. Through this gamified approach, daily commutes become opportunities to climb the ranks while building safer driving habits.

LETSTOP Credits are the core currency of the platform, earned directly through safe driving achievements. Earning rates directly scale with user level, vehicle type and subscription tier as follows: PRO subscribers enjoy unlimited earning potential, while PLUS and LITE tiers are capped at 300 and 150 monthly credits, respectively.

In the STOP Store, users invest their earned credits into virtual cars with unique earning multipliers. From the basic model's 2% bonus to the Jazzster GN's 150% boost, each vehicle offers different strategic advantages for maximizing rewards.

Beyond vehicles, the store features mystery boxes containing rewards from 10 to 450 credits, as well as car upgrades and subscription boosts. Users can also access a voucher marketplace to redeem credits for real-world rewards through LETSTOP's partnership network.

LETSTOP's triple-boost system combines vehicle multipliers for immediate earnings acceleration, a level-progression system for sustained growth and a 5% referral program for community expansion. Premium membership unlocks enhanced benefits across three tiers, while special events create time-limited opportunities for increased rewards.

The platform's comprehensive rewards system operates across three membership tiers, each one tailored to different user needs. LETSTOP PRO (at $9.90 monthly) offers unlimited credit earning potential and exclusive benefits. The PLUS tier provides a balanced option at $4.90 monthly with a 300-credit earning cap, while the free LITE tier allows users to earn up to 150 monthly credits.

Beyond direct earnings, the rewards system incorporates partner vouchers, cryptocurrency conversion options and community features, such as leaderboards. Achievement rewards recognize milestones in users' safe driving journeys, while the upcoming cryptocurrency integration will allow users to convert their efforts into tradeable STOP tokens.

LETSTOP has shown consistent progress, with the following key milestones already achieved:

Looking ahead to 2025, LETSTOP plans to implement the following key developments:

These developments aim to strengthen LETSTOP's position as a leader in drive-to-earn while furthering its mission to enable safer roads worldwide.

STOP is an SPL token built on the Solana network. It’s designed to bridge safe driving behavior with cryptocurrency rewards. The STOP token implements an annual halving mechanism to ensure long-term value preservation, similar to Bitcoin's model, but accelerated to align with the project's growth trajectory.

STOP has a max supply of 100 million tokens, to be distributed in the following manner:

The growing adoption of LETSTOP's drive-to-earn app and its impact on road safety directly influence STOP's price trajectory. While cryptocurrency forecasts remain speculative by nature, multiple price analysis platforms project the following for STOP:

These forecasts suggest a positive long-term outlook for STOP, driven by the growing drive-to-earn sector and LETSTOP's innovative approach to road safety. However, STOP's future value will ultimately depend upon user adoption, platform development and broader market conditions.

Looking to trade LETSTOP tokens? Bybit now offers the STOP/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

STOP shows promising potential in the drive-to-earn sector, though investors should carefully weigh both its strengths and potential risks before making investment decisions.

While STOP's innovative approach to road safety and its strong initial traction distinguish it in the market, potential investors should 

 and invest no more than they can afford to lose.

As smartphone distractions continue to endanger lives on roads worldwide, LETSTOP offers an innovative path forward. Through its innovative drive-to-earn model and STOP token ecosystem, the platform transforms daily commutes into safer roads and user earnings opportunities, showing how digital innovation can effectively “drive” positive behavioral change.

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LETSTOP (STOP): Turning Daily Rides Into Profitable Journeys

Bybit Learn

DeFi

From improving liquidity to expanding upon scalability, DeFi 2.0 is here to stay. Read on to learn how it improves upon DeFi's original shortcomings.

The first wave of decentralized finance, collectively known as DeFi 1.0, gave people a way to invest and exchange cryptocurrency outside of traditional, centralized markets. Now, a new generation of decentralized initiatives is taking shape, and it’s already been dubbed DeFi 2.0. This in-depth guide will answer the question, “What is DeFi 2.0?” It will also explain DeFi 2.0 vs. DeFi 1.0 and describe how to invest in DeFi 2.0, giving you the knowledge you need to capitalize on the latest innovations in 

DeFi 2.0 is a collection of decentralized finance projects that aim to improve on the previous efforts of DeFi 1.0. The movement focuses on making improvements in the areas of liquidity, scalability, governance and security.

Any investigation of this topic needs to start with the question, “What is DeFi 2.0?” From there, the natural follow-up is, “How is DeFi 2.0 different from. DeFi 1.0?”

While the idea of DeFi 2.0 vs. DeFi 1.0”suggests two separate ideas, it’s worth remembering that they spring from the same general theory. Both DeFi 1.0 and DeFi 2.0 are iterations of a single notion: The idea that blockchains allow for a decentralized finance ecosystem which bypasses traditional centers of financial power.

“DeFi” in general refers to a collection of decentralized applications that use smart contracts and secure oracle networks to conduct finance without intermediaries. DeFi 2.0 remains true to this central premise, but makes adjustments to overcome some of DeFi 1.0’s principal shortcomings.

As crypto enthusiasts flocked to DeFi applications, they couldn’t help but notice considerable limitations. For one thing, liquidity was hard to come by. The fact that providing liquidity required users to lock up their funds led to an undesirable amount of financial rigidity and capital inefficiency. DeFi protocols also had notoriously complicated user interfaces, meaning few beyond experienced crypto traders could navigate the applications. The protocols’ reliance on Ethereum caused further complications, as the blockchain’s increasing popularity produced slower transaction times and higher fees.

When considering DeFi 2.0 vs. DeFi 1.0, you need to remember that DeFi 2.0 represents a concerted effort to overcome some of these central difficulties. While the DeFi ecosystem is still far from perfect, a few key improvements are already apparent. Once you understand them, you’ll be ready to learn how to invest in DeFi 2.0.

DeFi 2.0 Creates Stronger Connections Between Users

If you’re thinking about what DeFi 2.0 protocols are — and how they’re different from more traditional financial applications — DeFi 2.0 protocols are essentially decentralized financial applications that endeavor to connect users who contribute liquidity. These applications promote the types of horizontal connections that foster lasting relationships. This, in turn, will produce a DeFi ecosystem that’s decentralized but still interconnected.

DeFi 2.0 Uses Optimized Governance Patterns

Governance is a key issue in any decentralized endeavor, and DeFi 2.0 is based on better administrative solutions. In DeFi 2.0 protocols, community members cooperate to make decisions and create policies. This democratic process allows frameworks to develop without relying on a powerful arbiter.

DeFi 2.0 Includes User-Friendly Incentive Schemes

Decentralized finance can only survive with liquidity, and DeFi 2.0 projects are employing creative incentive programs to acquire and maintain sufficient capital. Not only do incentives help solve the liquidity problems that plagued DeFi 1.0, but they also foster connections between users, thus helping to produce more cooperative communities.

DeFi 2.0 Promises a More Sustainable Ecosystem

If there’s one thing you should understand after asking what DeFi 2.0 is, it’s that the new decentralized protocols are being designed with an eye toward sustainability. This is also the key factor in the “DeFi 2.0 vs. DeFi 1.0” discussion. The combination of liquidity, interconnectedness and sound governance should create a decentralized ecosystem that can last. This sustainability will allow DeFi 2.0 projects to gather further momentum, attract more users, and redefine finance on a larger scale.

You can answer the question, “What is DeFi 2.0?” without knowing how the associated protocols operate. A quick overview of DeFi 2.0 vs. DeFi 1.0 is enough to explain the basic idea behind the latest iteration of decentralized finance, but a more in-depth discussion demonstrates exactly how investors can benefit from DeFi 2.0.

There are several features unique to DeFi 2.0 that make the movement a more appealing target for crypto investors. From smart contract insurance to self-repaying loans, these novel ideas lay the groundwork for a sustainable DeFi ecosystem.

In the DeFi 2.0 vs. DeFi 1.0 discussion, one of the biggest issues is user-friendliness. DeFi 2.0 protocols often allow investors to take out insurance on their smart contracts. This is a significant source of protection, especially for novice investors.

Many people would love to stake LP tokens in a smart contract but worry that the contract could become compromised. They know that a compromised contract is impossible to rectify on the blockchain, and they lack the technical nous to protect their investments on their own. An insurance policy allows them to stake tokens without any concerns. Not only does this help individual investors, but it also encourages the influx of more capital into the protocol.

DeFi 2.0 projects are introducing new measures to mitigate this inherent risk. Some protocols use the proceeds from fees to insure users against impermanent loss. They can also mint new coins to make up for losses. All of these policies make DeFi a safer option for crypto investors.

The DeFi 2.0 ecosystem allows for a remarkable financial maneuver in which loans pay for themselves. A lender can provide a user with a loan in exchange for collateral in the form of a small deposit. This deposit is then invested by the lender, who goes on to earn interest. Once the lender has earned the full price of the initial loan, they return the deposit, and the loan recipient ends up not having to repay the loan.

Most people who ask, “What is DeFi 2.0?” are also curious about any risks that might be associated with investing in the movement. While this second iteration of DeFi is generally safer than its predecessor, there’s still no guarantee that every investment will prove successful. Even the best DeFi 2.0 projects have inherent drawbacks, and investors should be aware of any potential pitfalls before staking tokens. Once you’ve learned about the main risks, you’ll understand more about how to invest in DeFi 2.0.

Crypto investors can’t be completely sure that the smart contracts they’re interacting with won’t be hacked. Before staking tokens, always investigate the project thoroughly. Even after you’ve done your due diligence, a surprising hack could occur. Luckily, insuring your smart contracts can help limit the damage in case of illegal activity.

As decentralized finance attracts users and more people learn how to invest in DeFi 2.0, governments around the world will become increasingly eager to get involved. Many governments will try to impose regulations on DeFi 2.0 protocols. As an investor, it’s important to recognize that your future activities might be affected by rules and limitations that don’t yet exist. While this concern shouldn’t scare you off from participating altogether, it’s certainly something to keep in mind as you discover how to invest in DeFi 2.0.

We’ve answered our initial question, “What is DeFi 2.0?” We’ve also learned about DeFi 2.0 vs. DeFi 1.0. Now, it’s time to learn how to invest in DeFi 2.0. Decentralized finance involves several types of maneuvers that may be unfamiliar to crypto newcomers. Once you’ve learned a bit about common investment strategies, you’ll have a better understanding of the general DeFi 2.0 ecosystem.

If you were at all familiar with decentralized finance before learning what DeFi 2.0 is, you might have questioned how the new movement deals with yield farming. This mechanism, a key innovation of DeFi 1.0, has become even more useful for investors in the latest installment of decentralized finance.

As with older projects, DeFi 2.0 protocols use yield farming to get liquidity from users. However, they go even farther by letting investors use tokens as collateral for loans. This twist on yield farming makes the protocols a more enticing option for investors.

Self-repaying loans represent wonderful opportunities for lenders and loanees alike. Offering loans in exchange for interest payments is a great way to engage in yield farming within a DeFi 2.0 protocol.

Liquidity provision gives crypto holders an easy way to profit from their holdings. With this maneuver, holders pass some of their cryptocurrency to a liquidity pool so that users can trade against it. In exchange, the holder who provides the currency receives a fee. These types of simple, win-win transactions allow DeFi 2.0 protocols to attract liquidity while users earn a profit.

Anyone asking about DeFi 2.0 is likely to be equally curious about DAOs, the autonomous organizations that provide the basis for most decentralized finance. Investors can join a DAO by purchasing the organization’s token. Once you’ve bought yourself into the community, you should have a say in governance. This direct participation represents a motivation for learning about how to invest in DeFi 2.0.

If you want to know how to invest in DeFi 2.0, you need to have a basic understanding of the existing projects. While there are too many protocols to list them all, this guide will introduce you to some of the most important undertakings.

If there was a single project you’d heard of when you first wondered about DeFi 2.0, it was probably Olympus DAO. This decentralized reserve currency protocol set new standards in DeFi and became the starting point for DeFi 2.0. Investors can use the project for all sorts of yield farming, from staking to purchasing bonds. The organization is especially famous for its unique, user-friendly bonding model.

For DeFi beginners trying to understand DeFi 2.0, it’s simply a movement that seeks to improve on DeFi 1.0 by freeing up additional liquidity, fostering more connections between users and creating a sustainable financial ecosystem. In considering DeFi 2.0 vs. DeFi 1.0, remember that the latest iteration of decentralized finance represents a major improvement, but it hasn’t been perfected yet. From here, you can employ your newfound understanding of how to invest in DeFi 2.0.

What Is DeFi 2.0, How It Improves on DeFi 1.0 — and How to Invest in It

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards