Delphil Digital predicts DeFi in 2025

Will DeFi really boom in 2025 and become accessible to every user? What interesting predictions has Delphi Digital made about the future of decentralized finance?

The cryptocurrency market is witnessing the return of DeFi (Decentralized Finance), which is not only a wave of short-term speculation, but also a sustainable development trend with increasingly clear practical applications.

Delphi Digital's “The Future of DeFi” report highlights key trends that will shape DeFi in 2025, from popularization to mass users, disruptive technology innovations to new business models.

DeFi for general users

One of the most important highlights of the report is DeFi's shift from a complex field, available only to tech-savvy people, to a more user-friendly and accessible ecosystem for mass users.

The emergence of new generation crypto cards such as Gnosis Pay, Argent and Fuse is a clear demonstration of this trend. These cards are not merely withdrawal tools, but also integrate the features of smart contract wallets, allowing users to:

Digital Asset Management: Store, send and receive cryptocurrencies securely and conveniently.
Access to DeFi services: Engage in activities such as lending, borrowing, staking and yield farming with ease.
Cryptocurrency Spending: Use cryptocurrencies to pay for goods and services in everyday life.
Automation of financial operations:Program periodic payments, establish complex spending rules, and automatically replenish the wallet.

Types of Crypto Integrated Cards. Source: Delphi Digital

ZKTLs Extends Limits for DeFi

ZKTLS (Zero-Knowledge TLS) is a new technology that aims to revolutionize the way users interact with DeFi. The technology allows users to demonstrate sensitive data on the blockchain without revealing personal information, opening up new possibilities for DeFi applications:

Decentralized credit lending (3jane):Users can borrow money based on on-chain credit history without having to reveal identity.
Personalized User Experience (Camp Network):DeFi platforms can provide services and products tailored to the needs and level of risk of each user.
Connecting the Web2 gaming world to DeFi (Showdown): Players can demonstrate in-game achievements and receive cryptocurrency rewards without having to worry about account information being exposed.

Operation model of ZKTLs. Source: Delphi Digital

Revenue Share Stablecoin

The traditional stablecoin model, where issuers profit from reserve interest, is being challenged by new stablecoins that share revenue with applications and users. Stablecoins like m0, AUSD, and Paxos USDG are at the forefront of this trend, bringing benefits to the DeFi community:

Decentralize the issuance of stablecoins:Reduce dependence on centralized organizations and increase transparency.
Promoting healthy competition:Encourage stablecoin issuers to compete by providing benefits to users and distribution partners.
Strengthening the growth of the DeFi ecosystem:Motivate DeFi wallets and platforms that integrate revenue-sharing stablecoins, contributing to DeFi's scale and application.

Revenue sharing stablecoin model. Source: Delphi Digital

Focus on the user interface

In DeFi, the value lies not only in the core protocols, but also in the user interfaces. Platforms like Jupiter Exchange and Phantom are taking advantage of this to attract users and create value by:

Provide optimal user experience: The interface is friendly, easy to use, integrates many features and supports a variety of devices.
Command Flow Control:Build deal aggregators, offering the best price and lowest slippage to users.
Creating unique products and services: Develop new features, provide innovative financial solutions, and meet the diverse needs of users.

Market share of user interfaces. Source: Delphi Digital

DEX floor takes the throne

It is impossible not to mention the rise of DEXs (Decentralized Exchange) and aggregators. With the development of solutions such as Angstrom, Bunni v2 and Whetstone, on-chain trading is becoming more efficient, secure and transparent.

Uniswap, with enhancements like Uniswap v4 Hooks, Unichain, and UniSwapX, is cementing its position as the liquidity backbone for DeFi. In addition, next-generation DEX architectures are being developed to meet the growing demands of DeFi users:

Valantis Labs:Modular DEX framework, which allows developers to build exchanges with custom features, meeting the diverse needs of the market.
Arrakis Finance:Integrate off-chain order flow through RFQ (Request Quote), protect LPs from MEV attacks and improve trading efficiency.
0xFluid: Use “smart collateral” to enable LP to borrow funds and optimize transaction fees automatically, helping users maximize profits.
DEX Orderboek:High-performance blockchains such as Monad, Sui and Aptos are driving the development of the DEX orderbook.

Areas where Uniswap V4's Hook developers focus. Source: Delphi Digital

Market Predictions Development

The prediction market is not only a place for users to bet on events, but also a powerful financial tool with many potential applications:

Limitless: Create on-chain 0DTE (Expiration Day) derivatives with efficient pricing and leverage, opening up new trading opportunities for DeFi users.
Truemarkets:Combines AI and decentralized governance to ensure fairness and transparency in predictive markets, creating trust for users.

How the 0DTE market works. Source: Delphi Digital

Starknet flourishes

The report also pays special attention to Starknet, a Layer 2 solution for Ethereum with the potential to become a leading platform for DeFi applications.

Bitcoin Rollups: Allows users to trade Bitcoin on Starknet at low cost and high speed, expanding DeFi's applicability.
Low blob cost:Provides scalability advantages over other Layer 2 solutions, making Starknet able to process large volumes of transactions at low cost.
On-chain games: The on-chain gaming ecosystem is thriving on Starknet, attracting users and driving the adoption of DeFi.

The number of blobs on Starknet over time. Source: Delphi Digital

However, DeFi still faces challenges such as reaching users and a lack of incentive programs. In order for DeFi to grow sustainably, there needs to be efforts from the community in simplifying the outreach process, providing attractive incentives, and building DeFi applications that are truly useful to users.

The future of DeFi is predicted to be a colorful picture with the arrival of advanced financial solutions. With constant innovation and efforts from the community, DeFi is step by step realizing the vision of a decentralized, transparent, efficient and accessible financial system for all.