The term DeFi stands for financial freedom and access. If you want to take part, all you need is an internet connection, a wallet and of course some crypto. In 2020 and 2021, the sector experienced correspondingly high growth, driven among other things by low key interest rates and the increasing risk appetite of institutional investors. A gold rush atmosphere quickly developed, which not only attracted well-meaning actors. Potential soon turned into hype. And that drove the greed that probably culminated in the Terra collapse.
DeFi: That’s coming up
However, some projects are taking advantage of the innovation potential in the DeFi space and are now beginning to offer more sustainable products. Away from the alchemy of the food token hype, towards financial instruments that are also suitable for traditional economic actors and average investors.
In the new podcast episode of BTC-ECHO Invest, BTC-ECHO editors Johannes MacSwayed and Jan Heinrich Meyer discuss the future of the DeFi sector and whether decentralized financial applications could soon replace their centralized counterparts.