Institutionalization is no longer about moving Wall Street onto the blockchain, but turning Wall Street into DeFi companies. This summary sets the tone for the core of Devconnect 2025's DeFi Today campaign. DeFi is bidding farewell to the era of "on chain casinos" and beginning to compete seriously for the backend infrastructure of global finance. The following are core insights from top institutions such as Aave, EF, Fluid, Uniswap, and Baillie Gifford. one ️⃣ Private chain sentenced to 'death penalty' Baillie Gifford, a century old institution managing $300B of assets, has a clear attitude: private chains cannot provide better utility than centralized databases. They reject 'mirror' assets and choose to issue native tokenized funds directly on the Ethereum mainnet. Only public chains (especially Ethereum) can provide true security, liquidity, and composability two ️⃣ Decentralization is not black and white, but a lineage Danny Ryan pointed out that the future of finance does not have to be a purist 'code is law'. The core goal is backend refactoring: utilizing on chain settlement layers to reduce intermediary costs and enhance transparency. Even if only some components are on chain, as long as it can reduce the friction cost of traditional finance, it is a huge victory. three ️⃣ Stable currency: Internet currency layer and "crypto new bank" Both Stani from Aave and the CEO of Ether Fi are building a "crypto new bank": the front-end is a silky experience with 3% cashback and 10% return, and the back-end is a complex DeFi protocol. Users do not need to understand Gas, they only know that it is a more profitable 'bank account'. Stablecoins settlement is quietly replacing some of Visa's functions and becoming the most certain growth engine of this cycle. four ️⃣ The ultimate squeeze of capital efficiency Infrastructure is shifting from extensive to refined. Fluid DEX v2 proposes the concept of 'debt equals liquidity': the debt mortgaged by users can be directly used for market making, achieving deep liquidity under zero TVL. At the same time, Morpho and Uni v4 Hooks are also committed to generating multiple values from the same fund, and the liquidity battle has escalated comprehensively. five ️⃣ The roadblock has changed: no longer regulation, but privacy EF's Oskar admits that the biggest pain point for institutions currently is the lack of privacy. Institutions need to prevent policy leakage and theft, while meeting compliance requirements such as DVP. What institutions need is not a complete black box, but 'visibility with scope'. This is the technological high ground that DeFi must conquer before accepting trillions of funds. six ️⃣ Beware of Skeuomorphism in Finance Austin Adams sharply criticized in his closing speech that many current RWAs simply imitate outdated TradFi designs (such as stock certificates) on the chain. The real innovation should not be moving functionally dead IPOs onto the chain, but using smart contracts to automate issuance and underwriting. Don't just do digital renovation for the old world. seven ️⃣ summary DeFi Today demonstrates a pragmatic ambition. The fervent Ponzi narrative has faded, replaced by serious discussions about credit ratings, backend restructuring, and compliance privacy. DeFi is no longer satisfied with marginal revenue cultivation, but is ready to become the underlying operating system of global finance. read the whole passage: https://substack.chainfeeds.xyz/p/tradfi-defi-today-devconnect-2025