Great WSJ primer on Defi, or decentralized finance. The article is chockfull with stats about changes in money. Inveniam delivers DeFi solutions for banks … Consider:
* “Assets deposited as collateral on DeFi platforms, a measure known as total locked value, have grown to more than $100 billion, of which about $64 billion is on Ethereum, according to the website DeFi Pulse. A year ago, there were only about $1 billion of DeFi assets on Ethereum.”
Key takeaway: Runaway growth.
* “For users, the appeal of DeFi is simple. There are almost no requirements to participate, except for having some form of crypto as collateral. Interest rates are attractive compared with traditional investment products. And because transactions are automated, settlement is virtually instantaneous, removing some of the traditional counterparty risk.”
Key takeaway: Kiss goodbye to T+2 stock settlement.
* “DeFi accounted for about 40% of the ether moved on the Ethereum network in the 12 months through April, up from 7% in the prior 12 months. DeFi services using Ethereum competitors are growing too. Binance Smart Chain has about $26 billion in assets across about 60 apps. Meanwhile, the largest startups offering DeFi services, Celsius & Nexo, have $21 billion & $15 billion in assets, respectively.”
Key takeaway: There will be competition.