Broader Flexibility for Asset Staking
DeFi 2.0 provides a vital improvement over the incentives for DeFi 1.0 users with yield farming. Even if users received LP tokens for staking their assets in a liquidity pool, the value of the assets locked up continued increasing. DeFi 2.0 projects can help in introducing new layers of incentives and utilities through investing LP tokens as collateral for loans. The LP tokens can also work for minting additional tokens, as you would find in the case of MakerDAO.
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