DeFi 2.0: Why Traditional Financial Assets Require New On-Chain Infrastructure

DeFi 1.0 primitives, such as AMMs and perpetual futures, were designed for high-volatility, speculative crypto assets like BTC, ETH, and SOL. As low-volatility real-world assets (RWA) like U.S. Treasuries and stocks move on-chain, these tools are becoming inadequate. The industry is shifting toward DeFi 2.0 primitives, including central limit order books (CLOB), fixed-rate lending, and interest rate derivatives, to better accommodate the characteristics of traditional financial instruments.