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.

Opinion

How to Avoid the Death of DeFi in the Wake of FTX

The crypto exchange’s collapse is an inevitable outcome for an industry yet to find its use case. For crypto to survive, it needs to learn from the very financial sector it set out to replace, says Brent Xu, the CEO of Umee.

By Brent XuFeb 9, 2023

Videos

DeFi's Current Functionality 'Barely Scratches the Surface,' Bank of America Says

The correction in digital asset markets last year led to a shift in focus and capital from speculative trading to projects with real-world functionality, but decentralized finance’s (DeFi) current functionality "barely scratches the surface," Bank of America (BAC) said in a research report Wednesday. The banking giant added that developer activity and adoption are part of the key to success. "The Hash" panel discusses the key takeaways of the report.

Feb 9, 2023

Tech

Aave Deploys Native Stablecoin GHO on Ethereum Testnet

GHO joins an increasingly competitive space as rival DeFi protocols also issue or are moving to release their own protocol-native stablecoins.

By Krisztian SandorFeb 9, 2023

Finance

Bank of America: Innovation to Expand Decentralized Finance Functionality Over Time

Developer activity and adoption is the key to success, the report said.

By Will CannyFeb 9, 2023

Bank of America (Taylor Simpson/Unsplash)

Finance

DeFi Giant MakerDAO to Introduce Aave Rival Dubbed Spark Protocol

The protocol is a fork of Aave v3 and will increase the use case for the DAI stablecoin.

By Oliver KnightFeb 9, 2023

Web3

Umami Finance CEO Dumps All Tokens After Week-Long Drama, Leaving Crypto Hopefuls Stranded

The move follows Umami making changes to how its value accrual token worked.

By Shaurya MalwaFeb 9, 2023

The Umami Finance team resigned en masse. (DALL-E/CoinDesk)

Tech

Tron Blockchain Commits $100M in Grants to AI-Focused Projects

The commitment comes as AI-focused tokens take over the narrative in crypto circles.

By Shaurya MalwaFeb 9, 2023

Cartel del fundador de Tron, Justin Sun. (Danny Nelson/CoinDesk)

Tech

Cardano Upgrade Aims to Improve Cross-Chain Features as On-Chain DeFi Crosses $100M TVL

“This upgrade will bring new cryptographic primitives to Cardano, encouraging greater interoperability and secure cross-chain dapp development with Plutus,” IOG said Wednesday.

By Shaurya MalwaFeb 9, 2023

Cardano's ecosystem is getting a cross-chain boost. (Gerd Altmann/Pixabay)

Markets

Flux Finance Launches Lending Token Collateralized by U.S. Treasurys

Flux Finance invests in Ondo’s Short-Term U.S. Government Bond Fund (OUSG) a tokenized version of a Blackrock Treasury Bond ETF.

By Sam ReynoldsFeb 9, 2023

The U.S. Treasury Department is seeking public comment on the role of cryptocurrencies in illicit finance, and its own response to this issue. (Nikhilesh De/CoinDesk)

Markets

Ether Liquid Staking Tokens Jump on Rumors of SEC Ban for Staking Providers

Coinbase CEO Brian Armstrong said he heard rumors about a possible ban on staking providers in the U.S.

By Shaurya MalwaFeb 9, 2023