Decode DeFi 2025: Top 10 Key Insights from Consumer Finance to Technological Innovation

Original text: Delphi Digital

Compiled by: Yuliya, PANews

Decentralized finance (DeFi) is regaining momentum as the market refocuses on practical value. From stablecoins to intent execution layers, innovation enters the fast lane, here are 10 key insights into the future development of DeFi.

1. Consumer DeFi applications are coming soon

Crypto payment cards are gradually evolving from simple withdrawal channels to self-hosted smart contract wallets, and can interact directly with the DeFi protocol. New crypto payment cards such as Gnosis Pay , Argent and Fuse support programmable spending, automatic top-ups, and integration with lending protocols, bringing the vision of banking closer to realization than ever before.

2.zkTLS enables new frontiers in DeFi

Zero-knowledge TLS (zkTLS) technology allows users to prove sensitive data on the chain without exposing private information. 3Jane (credit lending), Camp Network (customized user experience) and Showdown (Web2 games) are using zkTLS technology to expand DeFi to new markets. This may push functions such as on-chain credit scores, low-collateral lending, etc. into the mainstream market.

3. Revenue-sharing stablecoins reshape the market structure

Stablecoin issuers are obtaining huge revenues through reserve interest, and DeFi projects are subverting this model. New stablecoins such as M^0 , Agora and Paxos USDG share revenue with applications, incentivizing wallets and DeFi platforms to integrate. This model may drive the decentralization of stablecoin issuance and reshape the competitive landscape by reward distribution partners rather than relying solely on network effects.

4. DeFi value is transferred from the bottom layer of the protocol to

the front end

The value of the DeFi protocol is shifting to those entities that control exclusive order flows, especially wallets and intent-oriented front-ends. Platforms such as Jupiter and Phantom are planning to monetize order flows, aiming to reshape the value distribution of DeFi. As the MEV supply chain becomes more mature, the focus of competition will shift from DEX to the front end, and distribution capabilities will become the key to value capture.

5.2025 will become the year of trading for DEX growth and aggregator-driven

With the increase in DEX trading volume and the aggregator redefining the execution method, on-chain trading is ushering in a major transformation.

• Angstrom is committed to solving MEV and LVR problems;
• Bunni v2 enhances passive liquidity strategy;
• Whetstone Research has revolutionized the token issuance mechanism through Doppler.

6.Uniswap's strategic layout

Uniswap is transforming from a single DEX to a liquidity infrastructure for DeFi:

• Uniswap Labs v4's Hooks feature supports AMM customization, automatic LP management and advanced order types;
• As a blockchain specifically for DeFi, Unichain has the characteristics of high speed and MEV resistance;
• UniswapX is expected to become the main intentional execution layer in the DeFi field.

7. Change in DeFi trading paradigm

DeFi transactions are developing towards modular, intention-oriented and high-speed execution. A new generation of DEX architectures are emerging to optimize liquidity, execution quality and MEV protection:

• Valantis Labs provides a modular DEX framework that supports flexible exchange development;
• Arrakis Finance integrates off-site order flow through RFQ to protect LP from MEV;
• Fluid uses "smart collateral" to achieve leveraged market making and automated expense optimization;
• Order Book DEX: High-performance public chains such as Monad, Sui and Aptos are enabling efficient order book transactions.

8. Predict the evolution of the market

Predicting the market is no longer just speculation, such as:

• Limitless Exchange launches on-chain 0DTE derivatives provide efficient pricing and leverage;
• Truemarkets ensures fair results through its Truth Oracle+ AI-driven verification and decentralized governance.

As these models develop, the forecasting market may become a core component of on-chain finance.

9. Development of Starknet

Although Starknet still faces challenges, low-cost transactions, staking mechanisms and expanding ecosystems lay the foundation for its growth.

Key Catalysts:

• Bitcoin rollup may make Starknet a BTC Layer 2 leader;
• Lower blob costs bring expansion advantages over other L2s;
• On-chain gaming is becoming a new driving force for adoption.

10. Challenges and Innovation

Despite the rapid development of the DeFi field, it still faces some key challenges.

• The entry threshold is high: Due to the limited support of centralized exchanges, users have to cross-chain through Ethereum or rely on intermediary services;
• Inadequate token incentives: Many top protocols lack tokens or points programs, and users are not motivated to participate.

However, these challenges just indicate that DeFi still has huge innovation space and development potential in the following areas:

• Low mortgage lending products
• Lending Aggregator
• Interest rate derivatives
• On-chain securitization agreement
• Advanced Forecast Market

Looking ahead, the next wave of DeFi will focus on efficiency improvement, risk management and more advanced financial instrument development.