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DeFi Part 1. Introduction to DeFi

Some subjects are too complex for our short attention spans, so we do 4 posts one week apart, each one short enough not to lose your attention but in aggregate doing justice to the complexity of the subject. Stay tuned by subscribing.

The reason to pay attention to DeFi is  a)  capital is flowing into DeFi  and b) DeFi could disrupt legacy finance, which is a massive opportunity. Starting with capital, during 2020 there was a 10x increase in capital deposited in various decentralized finance networks and VCs (such as Andreessen Horowitz, Bain Capital Ventures and Michael Novogratz) were pumping money into their early stage equity. By January 2021, approximately $20.5 billion was invested in these DeFi networks.

To understand the bigger picture of whether DeFi could disrupt legacy finance, read the bear case in Part 2, Investor Beware says Eeyore and the bull case in Part 3, If it is broke then fix it says Tigger and the moderator’s  conclusion in Part 4, Watch and wait for honey says Pooh Bear

This Part 1 serves as an introduction. If you are new to DeFi this will be useful. If you are deep in the DeFi business you can either skip this introduction or tell our community via a comment where I have got it wrong.

DeFi in 9 bullet points:

Leading players today include:

Next week you can read the bear case in Part 2, Investor Beware says Eeyore

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