1. Introduction

With the rapid growth of the crypto market, Memecoins, a new category of digital assets, have become a focal point for global investors. Since 2023, market enthusiasm for Memecoins has continued to rise. By 2024, their total market capitalization surpassed 100 billion USD, making them one of the most dynamic—and most controversial—asset classes in the crypto space. Their popularity stems not only from high community engagement and entertainment value but also from their volatility and significant potential returns, which attract large numbers of both short-term speculators and long-term investors.

However, the explosive growth of the Memecoin market brings challenges that cannot be ignored. Under the twin pressures of high volatility and an immature market, Memecoins often lack sufficient liquidity and real-world application scenarios. Despite the strong community-driven effect, many projects struggle with sustainable development at the application level, leaving investors exposed to bubble risks and uncertainties from price fluctuations. Recent data shows that even though Memecoin growth has been meteoric, over 90% of projects fade away after short-term hype. This underscores the market’s urgent need for truly innovative projects and deeper use cases.

Memecoins are no longer merely “entertainment” tokens; they are increasingly finding their way into broader financial applications, especially in DeFi. As a community-driven liquidity and investment vehicle, Memecoins’ potential in financial applications has drawn growing interest and exploration. Yet, transforming Memecoins from a purely recreational asset into a mainstream financial product requires addressing the critical issues of liquidity shortfalls and limited use cases.

In response to these market pain points, DegenFi emerged. Focused on the Memecoin ecosystem, DegenFi is a decentralized liquidity solution aiming to provide more efficient liquidity for Memecoins, enhance market stability, and expand their utility in finance, payments, and other real-world scenarios. Through various innovations, DegenFi seeks to inject renewed vitality into Memecoin markets and guide them toward healthier, more sustainable growth.

As the Memecoin market continues to expand, DegenFi will evolve its platform to attract more Memecoin projects and users, driving wide adoption of Memecoins in DeFi, derivatives, lending, and more. Ultimately, DegenFi is committed to creating a more liquid, stable, and sustainable financial ecosystem for Memecoins, helping them shift from short-term speculation to long-term value.