Kinetix is revolutionizing decentralized finance (DeFi) with its AI-powered hub, paving the way for the next wave of mass-market DeFi. The rise of DeFi in 2020 marked the beginning of a new financial era, introducing innovative platforms that have become key players in the Web3 space. By enabling participants to leverage dormant liquidity, DeFi ignited an on-chain renaissance, featuring decentralized lending markets, enhanced order books, bonding curves, synthetic assets, and the aesthetically appealing Automated Market Maker (AMM).
The initial wave of DeFi in 2020 brought both innovation and challenges. While it introduced numerous use cases and significantly increased on-chain transaction volumes, it also led to skyrocketing gas fees. To address the growing demand, 2021 and 2022 saw the emergence of sidechains, roll-ups, and other Layer 2 solutions, along with gas-intensive applications like Web3’s native perpetual contracts, marking the second generation of DeFi. Despite these advancements, DeFi remained complex and user-unfriendly for the broader market. However, AI-driven applications are now ushering in a third generation of DeFi, characterized by groundbreaking protocols that simplify user experiences. With Large Language Models (LLMs) like OpenAI’s ChatGPT becoming mainstream, DeFi is poised to attract a wider audience by offering intuitive, user-friendly tools built on the robust, scalable infrastructure of its predecessors
