DeFi
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Decentralized Finance (DeFi) and Decentralized Exchanges (DEXs) have been one of the fastest growing parts of the crypto sector.
DeFi lets anyone do most of the things that banks support — earn interest, borrow, lend, buy insurance, trade derivatives, trade assets, and more — but it’s faster and doesn’t require paperwork or a third party.
DeFi uses the blockchain technology that cryptocurrencies use. A blockchain is a distributed and secured database or ledger. Distributed applications (dApps) are used to handle transactions and run the blockchain.
As with crypto generally, DeFi is global, peer-to-peer (meaning directly between two people, not routed through a centralized system), pseudonymous, and open to all.
In 2021, reported that the Total Value Locked (TVL) assets in the DeFi space was $87.72B. The most common sentiment heard around the 'DeFi-verse' is that it tends to be challenging for newcomers as well as crypto veterans.
