DeFi

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, DeFi Pulse 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.