DeFi

DeFi, short for decentralized finance, represents a shift in the financial sector by leveraging blockchain technology, primarily Ethereum, to eliminate traditional financial intermediaries. It enables various financial applications, from simple transactions to complex contracts, through smart contracts that execute automatically under specific conditions. Key DeFi applications include decentralized exchanges (DEXs), stablecoins, lending platforms, and prediction markets. DeFi offers financial services like loans and interest-earning opportunities without traditional identity verification, relying instead on collateral, usually in cryptocurrency. This innovative sector promises increased accessibility and efficiency but comes with risks, such as market volatility and unregulated projects.


Finance

Crypto Trading Protocol Drift Relaunches Into Rocky Solana DeFi Landscape

The derivatives trader is back after an eight-month hiatus.

Drift v2 (Drift Protocol)

Videos

DeFi Can Worsen Volatility Without Even Avoiding Middlemen: BIS

Decentralized finance (DeFi) could lead to bumpier financial markets and may not even fix problems of large intermediaries dominating, two papers published Friday by the Bank for International Settlements (BIS) said. "The Hash" panel discusses what this means for the future of open finance.

Recent Videos

Opinion

FTX and Crypto Bust Show Capitalism’s Limits

Investors have been led astray by misleading signals from the market. It enticed them to go "all in" on centralized exchanges rather than focusing on real-world use cases for tokenized value exchange.

(Rachel Sun/CoinDesk)

Finance

Solana-Based Raydium Exchange Victim of 7-Figure Exploit

Currently, about $2 million of different cryptocurrencies are sitting in the attacker’s account.

(Getty Images)

Policy

DeFi Can Exacerbate Volatility Without Even Avoiding Middlemen, BIS Reports Say

The group of central banks continues its pessimism, as crypto innovations seek to make financial markets more efficient.

Casa central del Banco de Pagos Internacionales en Basilea, Suiza. (Trabantos/Getty Images)

Finance

Protocol Developer Archblock Aims to Bring US Community Banks to DeFi Through Partnership

Archblock and Adapt3r's joint effort highlights an accelerating trend in DeFi to cozy up with old-school banking.

The partnership aims to close ties between traditional banking and decentralized finance. (Getty Images)

Opinion

The Next Step in the Evolution of Web3: Regenerative Finance

“ReFi,” coined by economist John Fullerton, is the process of using markets to fix the issues markets have created. Crypto, the freest market system yet, can help bootstrap efforts to regenerate the world economy.

(Getty Images)

Opinion

Forget CBDCs, Here’s Where the Biden Administration Needs to Focus in 2023

Rather than centralizing the digital dollar, lawmakers should focus on exploring a decentralized identification program and develop financial literacy programs for the general public.

(Getty Images)

Markets

Crypto Lending Platform Maple Finance Unveils Major Overhaul, Stops Lending on Solana

The improvements attempt to solve Maple’s design shortcomings highlighted during a recent debt crisis, but they may reduce incentives for holding the protocol’s native MPL token in its new form, an analyst said.

(Unsplash)