It’s going to be a wild ride in the world of decentralized finance (DeFi) this year. According to new studies, DeFi is the fastest growing industry in the Blockchain sphere and the “DeFi2020” hashtag is quickly becoming one of the most talked about topics in the cryptosphere.
DeFi has taken the cryptocurrency world by storm, and it’s no surprise. With DeFi, users can borrow, lend, and trade using a variety of protocols and assets. But what exactly is driving this explosive growth in the DeFi space?
The main benefit of DeFi is decentralization: the process of removing intermediaries and allowing users to transfer and store assets without relying on a third-party. This opens up a lot of options for those who want to explore decentralized finance and take advantage of the money protocols available in the space.
The decentralized nature of DeFi means users don’t have to trust a third-party custodian to store their digital assets or risk their funds being seized by malicious actors. This, in turn, allows them to make well-informed financial decisions that can yield impressive returns. DeFi protocols also allow users to diversify their portfolios, hedge against risks, and gain access to new asset classes without the expensive cost of a traditional middleman.
Furthermore, these protocols are often open source and built using smart contracts on the Ethereum blockchain, enabling users to explore and customize the existing financial infrastructure. This could mean greater rental rates for lenders, higher yields for liquidity providers, and more competitive rates for borrowers.
Another key benefit of DeFi is “trustlessness”. By relying on smart contracts, users can bypass the need for intermediaries and trust that their financial transactions will be conducted securely and reliably. In other words, they can trust that the rules they set are followed – and that their funds are safe.
It’s clear that the future of finance lies in the decentralized world. With its bustling community, infinite potential, and numerous advantages, 2021 is poised to be a defining year for DeFi. So if you want to explore the exciting world of decentralized finance, there’s no better time to get started! Follow us at [Twitter account] for more on the future of DeFi.