The world of Decentralised Finance (DeFi) has seen remarkable growth in its first year of mainstream adoption. As a DeFi expert, it is important for me to stay up to date on the latest developments of this innovative sector. Early adopters of DeFi saw an explosion in terms of possibilities and new opportunities. In recent months, regulators have offered guidance on digital assets, along with several DeFi protocols gaining permission to operate.
Since its conception, DeFi has truly revolutionised the financial world. It has enabled everyone, regardless of wealth status or experience, to access financial services of closed off systems, reducing traditional costs and time required to access traditional banking systems. The speed and cost benefits are just the beginning to why DeFi is growing rapidly over the past year.
Today, DeFi allows people to borrow, lend, stake and trade with their digital assets. This means users can capitalize on any gains with leverage, provide liquidity for others to trade and provide loans for a range of services. DeFi applications opened up barrier free access to the markets, reducing traditional entry costs.
Today, DeFi had gained mainstream traction, with over $12 billion locked in total, with top DeFi protocols including Compound, Aave and Maker challenging traditional financial models. The decentralized nature of these protocols means they provide an open-sourced alternative to the traditional borrowing, lending, trading and savings protocols.
By removing entry barriers, accessibility and providing reduced costs, DeFi has enabled millions of users around the world to participate in financial markets. With the addition of trusted custodians and decentralized exchanges, the sky is the limit on what is possible.
The future of DeFi is promising indeed, but it is important to get the right advice and information on DeFi in order to make the right decisions for your portfolio. As we move forward, be sure to follow me for more insightful and educational content about DeFi and the rapidly changing world of finance.