Summary
DeFi v1 had complex protocols that encompassed many functionalities, leading to questions about whether they should be considered financial primitives. These protocols, like Aave, had numerous risk parameters and enabled complex functionalities. This led to forking in order to replicate these functionalities in new ecosystems, resulting in a proliferation of protocol forks across platforms like Aave, Compound, and Uniswap in different EVM ecosystems.
Key Points
1. DeFi v1 was characterized by the dominance of complex protocols that encompassed a wide range of functionalities.
2. The complexity of these protocols raised questions about whether they should be considered financial primitives, as they included numerous risk parameters and enabled intricate, monolithic functionalities.
3. The prevalence of these large protocols often led to forking, where similar functionalities were replicated in new ecosystems. This resulted in an abundance of protocol forks across platforms like Aave, Compound, and Uniswap, as well as different EVM ecosystems.