Electric Capital partner shares the top 5 DeFi trends they are focusing on, involving projects like Aave, EigenLayer, and more.

Wu learned that Ken Deeter, a partner at Electric Capital, shared five major $DeFi trends he is focusing on. 1. Convergence of lending markets: Platforms like $Aave, MorphoLabs, SiloFinance, EulerFinance, Kamino, and Fraxlend are converging in functionality, with circular operations becoming ubiquitous. The future focus will be on use cases, partnerships, and ecosystem expansion. 2. Rebalancing of treasuries: Projects like Tokemak, Cove Finance, Veda Labs are bringing more yield to users and providing more efficient liquidity for the market and ecosystem. 3. Term assets: veTokens, Term Labs, Pendle, Hourglass, Frax Bonds, etc., are building infrastructure for asset markets with terms and maturity dates. 4. Real-world assets (RWA): Including stablecoins, treasury bonds, and reinsurance, will become the backbone of on-chain economic activities. 5. Re-staking: Ideas like EigenLayer, which put any yield-bearing asset at risk to support other protocols, have strong potential.