What is DeFi 2.0?

The obvious question that must have been running through your mind is the definition of DeFi 2.0 does not come as a surprise. It is basically the second generation of decentralized finance protocols aimed at clearing the flaws in the first DeFi iteration. Almost any individual with a crypto wallet could obtain access to decentralized finance services. However, DeFi 1.0 has a specific set of limitations, which DeFi 2.0 aims to resolve with an innovative concept. DeFi 2.0 would leverage Protocol-Controlled Liquidity or PCL protocols for resolving the problems of liquidity.

The focus of the new DeFi 2.0 in crypto would evolve with a business-to-business or B2B model orientation. Interestingly, the first generation of decentralized finance products has strengthened the foundations of the industry through a strong user base. In addition, early DeFi solutions also established some crucial benchmarks for enabling future developers to create new DeFi solutions. As of now, the primary goal of DeFi 2.0 focuses on protection for the long-term viability of decentralized finance.