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.

Tech

Polkadot-Based Acala Raises $7M as DeFi Grabs Land on Another Blockchain

Acala, a DeFi startup building on the Polkadot blockchain, has closed a $7 million simple agreement for future tokens (SAFT) led by Pantera Capital.

By Brady DaleAug 27, 2020

Fresh pastures (Francesco Ungaro/Unsplash)

Markets

First Mover: Monetary Challenges Aren't Just Virtual as Fed's Powell Returns to Jackson Hole

Crypto traders are prepping for a speech by Federal Reserve Chair Jerome Powell in Jackson Hole, Wyoming, where inflation is on the agenda.

By Bradley Keoun, Omkar Godbole, Sebastian SinclairAug 27, 2020

View of Grand Tetons near Jackson Hole, Wyoming. (Wikipedia, modified by CoinDesk)

Finance

Why DeFi Pulse's Key Metric Is So Simple It's Confusing

DeFi Pulse invented "Total Value Locked." Yet, TVL's mechanics have been somewhat confusing to those in the space. Here's how the leading DeFi metric works.

By Brady DaleAug 27, 2020

DeFi Pulse does the complex work of counting how much is committed to each DeFi platform. (Crissy Jarvis/Unsplash)

Markets

Market Wrap: Bitcoin Braces for $700M in Options to Expire; Record $7B Value Locked in DeFi

Bitcoin price is trending up while crypto keeps flooding into DeFi.

By Daniel CawreyAug 26, 2020

Markets

'It's Part and Parcel of Crypto': How Memes Drive Narrative and Value

In 1964, the Canadian media theorist Marshall McLuhan said the "medium is the message." Today, in crypto, the meme is the message.

By Daniel Kuhn, Benjamin PowersAug 26, 2020

Tech

Forthcoming Yield Farming Project Dispenses With Governance

Everyone may be talking about governance on Ethereum, but the yet-to-launch DeFi project Liquity is taking a contrarian view: zero governance.

By Brady DaleAug 25, 2020

Markets

First Mover: Ether Price Swings Make Bitcoin Look Tame as DeFi Speculation Spreads

The success of DeFi on the Ethereum blockchain has brought traders more than just congestion and high transaction fees: Volatility in ether prices.

By Bradley Keoun, Omkar Godbole, Sebastian SinclairAug 25, 2020

Ether volatility is brewing. ("Approaching Thunder Storm, Martin Johnson Heade/Metropolitan Museum of Art, modified by CoinDesk)

Markets

Aave Becomes Second DeFi Project to Overtake MakerDAO for Most Crypto Deposited

DeFi credit market Aave has pulled ahead of stablecoin mint MakerDAO for the title of most collateral staked on Ethereum, according to DeFiPulse.

By Brady DaleAug 25, 2020

(U.S. Marine Corps, modified by CoinDesk)

Markets

DeFi Aggregator Bella Protocol Announces $4M Seed Round

Beijing-based decentralized finance (DeFi) aggregator Bella Protocol announced Monday a $4 million seed round led by Arrington XRP Capital.

By Jaspreet KalraAug 25, 2020

Markets

DeFi Is Just Like the ICO Boom and Regulators Are Circling

DeFi needs to self-regulate or, as happened with ICOs, regulators will punish irrational exuberance in the crypto markets.

By Donna Redel, Olta AndoniAug 24, 2020