If you dive into the wonderful world of DeFi, you will come across the most bizarre project names: Sushiswap, Spaghetti, Pancake and techniques such as Yield Farming. Developments are moving at a rapid pace. For example, the Yearn.Finance project was once worth $40,000 per token , a multiple of the value of Bitcoin, which currently fluctuates around $10,000.
The total market cap of DeFi projects has quickly reached $15 billion and continues to grow, although like the general cryptocurrency market, it is also subject to significant volatility. For example, the YAM project rose to $500 million in value within a day and almost collapsed again a day later.
Money is about trust. Trust that the physical Euros are worth indonesia telegram data what they say, but also that the money is safe in a bank. That trust has fallen sharply in recent years since the credit crisis and according to Edelman's authoritative 'trust barometer' , the financial sector is one of the global sectors that people trust the least .
The trillions that are currently being printed by governments worldwide to tackle the corona crisis and its consequences, also provide more breeding ground for the Libertarian-anarchist ideology. This promotes absolute freedom , including a monetary system without the influence and control of governments and banks.
The rapidly maturing cryptocurrency industry is a perfect fit for this, and the widening gap in access to financial products (1.7 billion people worldwide currently do not have access to financial products such as a bank and savings account) is causing DeFi projects to spring up like mushrooms.
DeFi: Open Financial Network Without Intermediaries
The name says it all: decentralized financial instruments, such as loans, savings and insurance, but also trading. An open financial network, which in principle offers the same products but without an intermediary. Peer-to-peer . Bitcoin started with this purely for payments, DeFi adds other financial products.
