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Top five application innovations in 2024
Author: Donovan Choy, Blockworks; Translation: Baishui, Golden Finance
Pendle
The existence of Pendle is due to the speculation of cryptocurrencies.
In its short history, Pendle has consistently emphasized its yield trading products, using stablecoins and the narrative of the infamous 'DeFi 2.0' (Olympus DAO) during the bull market of 2021, to liquidity staking tokens, real-world assets on Arbitrum, and liquidity re-staking during 2021.
It wasn't until early 2024 that Pendle's points exploded, achieving remarkable success with its TVL skyrocketing from millions to billions of dollars. Pendle's Principle Tokens (PT) and Yield Token (YT) mechanisms remain essential tools for anyone looking to execute any form of leverage or fixed income.
Fluid
Fluid is a perfect example of innovation. Fluid draws on many successful idioms of DeFi, such as Uniswap v3's concentrated liquidity and Aave's utilization curve, and then completely redesigns the traditional AMM liquidity configuration from scratch.
With its 'smart debt' and 'smart collateral' mechanisms, Fluid has achieved DEX deep liquidity pools worth millions of dollars, technically with a TVL of 0 dollars. This capital efficiency comes from the clever combination of user debt from lending protocols and AMM liquidity pools.
Ethena
Stablecoins are one of the most competitive areas. This has allowed USDe to reach an impressive market value of 6 billion dollars within a year.
Stablecoins of the past were built along the spectrum of centralization (USDT) and scalability (DAI). In contrast, Ethena has reached a series of impressive business development agreements with CEX and designed USDe, which is a scalable stablecoin that leverages CEX-DEX funding rate arbitrage and provides users with yield.
GEODNET
To achieve centimeter-level accuracy with GPS technology, traditional companies have deployed thousands of Real-Time Kinematic (RTK) networks worldwide, such as base stations and mobile stations.
GEODNET uses cryptocurrency incentives to expand the deployment of the RTK network. According to data from November, GEODNET has deployed at least 10,000 sites in 140 countries/regions, exceeding the total of 5,000 sites from traditional providers Trimble and Hexagon.
It is worth noting that GEODNET has significant cost advantages. Deploying a base station with GEODNET costs about $700, 97% cheaper than the traditional cost of $25,000. If this is not innovation, I don't know what is.
Virtuals
Virtuals is the primary 'pick and shovel' game in the recent AI agent craze.
This is an AI agent platform where anyone can generate tokenized AI agents. Similar to Pump.fun, once the native token of the agent meets the standard of a $420,000 market value, it will be bound to the DEX liquidity pool (Uniswap v2).
Virtuals is built on top of Base and has spawned at least 12,000 AI agents since its inception, including the popular anime ship Luna, which runs 24/7 and can be tipped using the agents' own tokens.
The innovation of Virtual comes from the combination of many different parts, including LLM models, encrypted wallets, innovative token economics, NFTs, and IPFS for data storage.