Decentralized Finance 2025 Outlook: The Top Ten Trends in Consumer Finance and Technological Innovation

As the market refocuses on practical value, Decentralized Finance ( DeFi ) is ushering in a new wave of development momentum. From stablecoins to intention execution layers, innovation is accelerating. Here are 10 key insights into the future development of DeFi.

1. Consumer-grade Decentralized Finance applications are about to become popular

The new type of crypto payment card is gradually evolving from a simple withdrawal tool to a powerful self-custody smart contract wallet that can interact directly with Decentralized Finance protocols. These payment cards support programmable spending, automatic top-ups, and seamless integration with lending protocols, bringing the vision of a bankless future closer to reality than ever before.

2. zkTLS Technology Opens New Fields in Decentralized Finance

Zero-Knowledge TLS ( zkTLS ) technology allows users to prove sensitive data on-chain without exposing private information. Some emerging projects are leveraging zkTLS technology to expand Decentralized Finance into new markets, including credit lending, customized user experiences, and Web2 game integration. This technology is expected to drive on-chain credit scoring, low-collateral lending, and other features into the mainstream market.

3. Revenue-Sharing Stablecoins Reshape Market Landscape

New stablecoin projects are disrupting the traditional model of earning income through reserve interest. These innovative projects and applications share profits, incentivizing wallets and DeFi platforms for extensive integration. This model could drive the decentralization of stablecoin issuance and reshape the competitive landscape by distributing rewards to partners, rather than relying solely on network effects.

4. The value of Decentralized Finance shifts from the protocol layer to the frontend

The value of the DeFi ecosystem is shifting towards entities that control exclusive order flow, particularly wallets and intent-driven front-ends. Some platforms are actively laying out order flow monetization strategies, aiming to reshape the value distribution of DeFi. As the MEV supply chain matures, the focus of competition will shift from DEX to front-ends, while distribution capability will become a key factor in value capture.

5. 2025: The Year of DEX Growth and Aggregator-Driven Trading

With the rise in DEX trading volume and aggregators redefining execution methods, on-chain trading is undergoing a significant transformation. Multiple projects are working to address MEV and LVR issues, enhance passive liquidity strategies, and innovate token issuance mechanisms. These innovations will drive further development and optimization of the DEX ecosystem.

6. Strategic Layout of Mainstream DEXs

A well-known DEX is transitioning from a single trading platform to a liquidity infrastructure for Decentralized Finance. Its new version will introduce Hooks functionality, supporting AMM customization, automatic LP management, and advanced order types. The project also plans to launch a blockchain specifically aimed at DeFi, featuring high speed and MEV resistance, and is expected to become a major intent execution layer in the DeFi space.

7. Decentralized Finance交易范式转变

DeFi trading is developing towards modularization, intent-driven approaches, and high-speed execution. A new generation of DEX architecture is emerging to optimize liquidity, execution quality, and MEV protection. This includes modular DEX frameworks, solutions that integrate OTC order flow through RFQ, and innovations that leverage "smart collateral" for leveraged market making and automated fee optimization. At the same time, high-performance public chains are achieving efficient order book trading.

8. The Evolution of Prediction Markets

Prediction markets are evolving from mere speculative tools into more practical and diversified applications. Emerging platforms have launched on-chain 0DTE derivatives, offering efficient pricing and leverage. Other projects ensure fair outcomes through AI-driven verification and decentralized governance. With the development of these models, prediction markets are expected to become a core component of on-chain finance.

9. The Development of Emerging L2 Ecosystems

Despite certain L2 networks still facing challenges, low-cost transactions, staking mechanisms, and an expanding ecosystem lay the foundation for their growth. Potential key catalysts include the application of Bitcoin rollup technology, which could make it a leader in BTC Layer 2; lower blob costs provide a comparative scalability advantage over other L2s; and on-chain gaming is becoming a new driver of adoption.

10. Challenges and Innovation Space

Although the DeFi field is developing rapidly, it still faces some key challenges, such as high user entry barriers and a lack of effective token incentives for some projects. However, these challenges also indicate that DeFi still has enormous room for innovation and development potential in various areas, including low-collateral lending products, lending aggregators, interest rate derivatives, on-chain securitization protocols, and advanced prediction markets.

Looking ahead, the next wave of DeFi will focus on enhancing efficiency, risk management, and the development of more advanced financial tools, bringing new vitality and opportunities to the entire ecosystem.