{"id":2209,"date":"2021-10-07T11:36:18","date_gmt":"2021-10-07T08:36:18","guid":{"rendered":"https:\/\/evercodelab.com\/blog\/?p=2209"},"modified":"2022-07-27T12:48:29","modified_gmt":"2022-07-27T09:48:29","slug":"defi-trends-and-developments-evercode-labs-role","status":"publish","type":"post","link":"https:\/\/evercodelab.com\/blog\/defi-trends-and-developments-evercode-labs-role\/","title":{"rendered":"DeFi Trends and Developments: Evercode Lab\u2019s Role"},"content":{"rendered":"

DeFi, aka Decentralized Finance, is a popular word in 2021. Indeed, this new segment\u00a0 is already recognized as a powerful new industry. According to a<\/span> report<\/span><\/a> published by the Bank of America, DeFi can be viewed as \u2018a new computing paradigm\u2026 accessible everywhere and to anyone and owned by millions of people globally\u2019.<\/span><\/p>\n

What are the advantages the experts highlight? There are many: tokens resembling OSs, countless<\/span> dApps<\/span><\/a>, no need for intermediaries, stablecoins based on fiat money and digital currencies supported by central banks, and even<\/span> non-fungible tokens<\/span><\/a>.\u00a0<\/span><\/p>\n

At the same time, the world of decentralized finance is still struggling with vulnerabilities and other teething troubles. For instance, in early October, a bug in Compound, \u201ca popular decentralized-finance staking protocol\u201d, suddenly and for no obvious reason gave $90 million to end-users users. As an outcome, the unfortunate owner has to ask end-users to return that money back.<\/span><\/p>\n

So, can decentralized finance be defined today? And how can Evercode Lab be helpful if you intend to capitalize on its growing popularity?\u00a0 <\/span><\/p>\n

DeFi Landscape<\/b><\/h2>\n

Frankly speaking, there is <\/span>no universal definition<\/span><\/a> of what Defi – or Decentralized Finance – is. However, one can still understand it, <\/span>in a broad sense<\/span><\/a>, as numerous available ways in which \u201cfinancial products become available on a public decentralized blockchain network\u201d. Therefore, it won\u2019t be a mistake to view it as an array of digital assets fueled by, based on, and circulated via blockchain technology. <\/span>
\n<\/span>
\n<\/span>The DeFi segment started to visibly skyrocket more than a year ago. It is measured with TLV, aka \u201ctotal value locked\u201d which means the total value of cryptocurrencies held in decentralized finance. The DeFi TLV quickly rose from slightly over 1 billion USD in May 2020 and reached its record high, 98 billion, in early September 2021. <\/span>
\n<\/span>
\n<\/span>After that, the overheated DeFi sector plummeted down to 76 billion. However, decentralized finance quickly got back on track. As of October 6th, it is <\/span>estimated<\/span><\/a> to be slightly over 89 billion. <\/span>
\n<\/span>
\n<\/span>A more <\/span>detailed breakdown<\/span><\/a> looks as follows: Ethereum blockchain accounts for almost 70% of DeFi TVL. Other top alternative chains include Binance, Solana, Terra, Polygon, Avalanche, Fantom, Waves, Arbitrum, and Klaytn.\u00a0<\/span><\/p>\n

Advantages of DeFi<\/b><\/h2>\n

So, what has made those enormous growth rates possible? <\/span>
\n<\/span>
\n<\/span>Well, as a transborder P2P mechanism enabling its users to store and transfer digital assets without limits and additional costs imposed by the traditional financial institutions, it is capable of many good things. The three key almost universally acknowledged <\/span>pros of decentralized<\/span><\/a> financ\u0443, including:\u00a0<\/span><\/p>\n