Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
If you watch the financial markets, you might have heard the words “decentralized finance,” or “DeFi,” pop up frequently.
The thriving peer-to-peer crypto network is becoming a standard part of a diverse crypto portfolio, grabbing the attention of consumers and billionaire investors alike. But what is it exactly? And what makes DeFi different from every other sector of crypto that you know?
In a financial world that is becoming increasingly digital, DeFi focuses on bringing the convenience of peer-to-peer transactions to investors. By harnessing the efficiency and power of smart contracts — digital contracts that live on the blockchain — DeFi platforms create a space for lending, borrowing, trading, saving, and earning interest that doesn't require all of the usual bureaucracy and minutiae.
The goals of the DeFi network are simple:
No paperwork and no wait time through the bank for transactions to clear.
Automating the contract process on the blockchain eliminates the need for human intervention.
Doing business with DeFi is seamless and fast.
DeFi is closing the gap between the individual and the financial oligarchy.
At the beginning of 2019, the TVL of lending platforms (mainly MakerDAO) was USD 270 million. This momentum continued in 2020 as well, to the point where Compound launched its governance token, COMP which kicked off the craze and initiated the first call for liquidity mining.
By Dec 2021, the TVL of DeFi jumped more than1000x, reaching USD 322.41 billion. You can see the Top 20 coins and projects below.
Select the most potential Defi token in 2022 from two aspects
Both rankings
Read more on cryptonews.com