The roundtable discussion at the Token2049 event in 2025 brought together prominent figures from the decentralized finance (DeFi) sector to explore its transformative evolution. Hosted by Haseeb Qureshi from Dragonfly, the dialogue featured insights from Jeff from Hyperliquid, Guy from Ethena, and Stani from Aave, all focusing on the distinct dimensions of DeFi protocols.
One key topic was the notable rise of “Stablecoinization,” with Hyperliquid’s recent launch of USGH, Ethena’s MUSD in collaboration with MegaETH, and Aave’s native stablecoin GHO marking pivotal moments in the industry. The discussion raised questions about whether we would see a trend where each DeFi protocol adopts its own stablecoin or if the market will consolidate around established players.
Jeff emphasized Hyperliquid’s role as a community-driven network rather than a singular application, viewing stablecoins as vital links between traditional finance and DeFi. He noted the importance of constructing a robust stablecoin infrastructure that facilitates liquidity integration. Meanwhile, Guy painted a landscape where different chains and applications will weigh the necessity of their own stablecoins against broader market dynamics and incentive structures. He suggested that the market is in an expansion phase, where the proliferation of stablecoins may force traditional institutions to reassess their user engagement strategies.
Stani highlighted that the introduction of GHO was largely driven by user demand for predictable borrowing costs. By focusing on stablecoin integration, Aave aims to capture revenue and innovate lending products that could seamlessly flow into broader financial applications. He pointed out that while DeFi lending has become a low-margin business, strategic developments could unlock significantly higher profit margins.
The conversation also ventured into the implications of fluctuating interest rates on the DeFi landscape. With the Fed indicating potential future rate cuts, Guy articulated that the inverse relationship between DeFi rates and traditional rates could provide an advantage for protocols like Ethena in retaining user engagement without increasing costs. Stani agreed, asserting that a decline in rates might set the stage for a resurgence in DeFi yields and attract users globally seeking investment opportunities.
Looking ahead, the guests speculated on future trends in DeFi, with Guy suggesting perpetual swaps for equities as a significant opportunity. He noted how the failure of traditional markets to accommodate continuous trading creates gaps for innovations like perpetual contracts. Jeff echoed this sentiment, highlighting that the integration of perpetual contracts could offer a bridge between on-chain and off-chain assets.
As the discussion turned towards risks inherent in DeFi, Jeff pinpointed “execution risk” as a critical concern, rather than isolated catastrophic failures. He argued that systemic failure often arises from chronic issues rather than sudden shocks. Guy remarked that while technical risk appears to have diminished since the prior cycle, the increasing complexity and scale of protocols now present new systemic risks. Stani emphasized the importance of counterparty risk in evaluating how assets function within Aave and the imperative for transparency.
The theme of composability within the DeFi ecosystem emerged as a key strength, as Stani affirmed that Aave’s growth has benefitted from the integrations offered by other protocols. He indicated that the interplay between decentralized modules creates a resilient system capable of managing diverse financial products, thus underscoring the need for clarity in governance and risk management.
As the conversation wrapped up, a rapid-fire round prompted the guests to identify their main competitors and reflect on common mistakes made by DeFi founders. The responses underscored the evolving narrative of DeFi, where traditional financial entities and new innovations coexist and engage in a quest for sustainable financial solutions.
