The world of decentralized finance (DeFi) has been rapidly growing in popularity, with the total value locked up in DeFi projects reaching an all-time high of over 10 billion USD just recently.
As DeFi continues to become more widely adopted, it’s important to understand what makes this sector so popular. From an outsider’s perspective, DeFi offers an open and inclusive financial market, accessible to anyone with an internet connection. It allows users to send, receive and trade crypto-assets on trust-minimised platforms – with no traditional middle-man involved.
The potential for high profits is incredibly attractive for those looking for new investments. What sets DeFi apart from traditional finance is that users have access to complex financial instruments, without having to rely on centralized services. That means users don’t have to trust third parties, such as banks, with their money. As such, projects within the sector can discover new ways to generate profits.
DeFi is also paving the way for a new class of decentralized applications, basically non-custodial programs that use blockchain technology. They bypass the need for trust in a digital asset, which allows for more secure and efficient transactions and contracts.
Decentralized swap platforms displaying real time quotes for several trading pairs and decentralized oracles that provide data to algorithmic trading are just two of the possibilities that DeFi unlocks.
Regular people are now able to get involved in the world of DeFi and take part in the global financial system. Traditional banks and exchange platforms can be slow and expensive to use, but with DeFi, investors don’t need to worry about sharing personal data or being locked into long-term agreements.
Moreover, the development of protocols and Tokens (such as MakerDao and Dai) creates a more reliable way to access capital without having to go through complex KYC and AML procedures. DeFi is holding promise for a new era of finance where users can enjoy autonomy and accessibility.
The world of DeFi is incredibly exciting and vast, it can be daunting to take the first steps. However, by understanding the basics and staying alert of events within the DeFi space, new users can get a glimpse into the opportunities presented – including high ROI and access to secure digital services.
For those looking to stay updated on the latest projects, platforms and news, it’s always important to read up on the sector and keep an eye on the everchanging landscape. With that said, you can always stay connected and follow us for more and up to date information on decentralized finance.