Cryptopedia
DeFi 2.0
DeFi 2.0 is created to make up for the drawbacks of Liquid Mining in DeFi 1.0. Although Liquidity Mining in DeFi 1.0 can incentivize liquidity providers to provide more funds and liquidity to the liquidity pool, these are short-term behaviors. Liquidity providers haven’t entered into a mutually beneficial partnership with the protocols in the long run, which means that they can stop doing so at any time. To fix this problem, many technical teams have proposed DeFi 2.0 which refers to building a sustainable decentralized financial that can transmit automatically. In DeFi 2.0, all community members who can provide liquidity will be linked, and their incentive relationships in all future transactions will be bound to liquidity incentives.