Decentralized Finance or, commonly referred to these days as “DeFi”, has to be one of the hottest words in the blockchain, crypto or even financial world these days. If ICO was the crypto catchphrase of 2017, “crypto winter” the 2018 moniker, IEO defined 2019, then 2020 will certainly be remembered for being the year of DeFi.
The truth is, DeFi’s the bandwagon right now because of the incredible returns on investment it has so far provided. Remember how we talked about financial services like investments and savings account? Well, a typical bank in a developed economy might offer you interest rates per annum close to zero in this economy. Most banks would consider a 5% return per annum a high-yield investment.
In DeFi, they’re promising double-digit percentage profit figures annualized yield. And people are reaping those rewards today.
But we see many, many caveats.
The fact that they actually aren’t truly decentralized — not compared to Bitcoin, anyway — doesn’t reallyVer reseña completa