According to a recent report, the total value locked (TVL) in DeFi protocols has reached record levels this year, reflecting an increase in user adoption and trust in the system.
A new trend has emerged towards multi-chain DeFi protocols instead of being limited to a single chain like Ethereum. Some projects have started to support multiple chains to expand access and efficiency.
An example of innovation: the launch of Finance District — a DeFi system designed for applications in the AI economy. The idea is that "smart agents" may use decentralized finance to manage payments, credit, and invest capital automatically.
- Protocols/platforms worth following
Some protocols like Morpho (DeFi lending network) have matured, and a new version (V2) aimed at institutional lending has been announced — reflecting a trend towards embracing institutions and large funds within DeFi.
Decentralized lending and trading protocols still hold strong importance — as they facilitate borrowing/lending and trading without intermediaries (via smart contracts), with higher guarantees than traditional loans.
Some new projects in DeFi have entered the "pre-launch" phase or intensified development; for example, Mutuum Finance (MUTM) announced that it has reached advanced stages of its roadmap for a new funding round.
- Regulation, risks, and technical challenges
On the organizational front: in the United States, for example, the GENIUS Act was passed in 2025, which is the first comprehensive federal legislative framework regulating the issuance and use of stablecoins — directly impacting the DeFi sector.
Technical and security risks: Recent academic research highlighted issues such as Blockchain Extractable Value (BEV) — types of exploitation (like Sandwich-attacks) that bring significant losses to some users. This underscores the need to improve security and fairness mechanisms in transaction execution.
From a research perspective as well, proposals have emerged using AI to improve interest rate and loan adjustments in lending protocols, enhancing efficiency and reducing the risks of bad debts.
- Why 2025 might be the "year of mainstream DeFi"
Many industry experts see 2025 as a turning point: DeFi is no longer an experimental endeavor, but has begun to penetrate deeper into real financial systems, with broader adoption by institutions and companies, albeit with greater regulatory pressure and oversight.
Additionally, the connection between DeFi and emerging sectors like artificial intelligence or unconventional assets (such as what Finance District is doing) could open entirely new horizons for financial applications — meaning that DeFi is no longer just for "exchange/lending digital currencies," but could become part of the future financial infrastructure.
#DEFI #TVL #WriteToEarnUpgrade
