the upcoming narrative for defi is derivatives. in this talk, i aim to talk about the existing defi landscape, new primitives (i.e. LP token rehypothecation), and what is upcoming (i.e. exotic derivatives, undercollateralized lending via on-chain identity). with the expansion of a new defi category, there are new challenges to be solved. cega is on the cutting edge of defi building exotic derivatives, and the talk aims to highlight the struggles and successes of defi 3.0.