June 5, 2021, 1:34AM EDT
• 10 min read

Protocols built on protocols: moving higher up the DeFi stack

Quick Take

  • The most popular DeFi protocols to date have offered the “simplest” financial primitives. E.g. a stable medium-of-exchange, lending, trading.
  • Many ideas on Ethereum have been ported over to other chains — arguably improved by higher scalability — but often there’s been little innovation in protocol mechanics.
  • New protocols building on existing infrastructure components is where the more interesting innovation in DeFi is happening.

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