Topic: Behind on "the fi" craze (Read 102 times)

Did you feel confused with the title? Perhaps not since most of you already talking about it lately and based on that I'm trying to discover what are the things makes people putting their money into defi. Anyway "the fi" was inspired by the latest newsletter from shitcoin.com

1. Regulators
In July, the Securities and Exchange Commission (SEC) made a major change by approving defi project for the first time (Arca - built on ethereum blockchain). This is welcome and important sign, since the major challenges in financial innovation is the hostile environment created by old regulations written for an olden era.

2. Mainstream players are getting involved
There are some high financial institutions are starting to accept defi and looking for a ways to participate in. For example, 75 major banks are trialling blockchain payments network as part of the Interbank Information Network, including JP Morgan, ANZ and Royal Bank of Canada. Aside from that, major asset management funds are starting to take defi seriously as well. Most prominent is Grayscale which is one of the largest crypto investment fund.

3. COVID-19
The pandemic has encouraged global interest rates even lower. In this case, defi potentially offers higher returns e.g compound has been offering an annualized interest rate of 6.75% for those who save with tether. Not only get interest, you also receive Comp tokens which is an additional attraction.

Read the full article here - https://theconversation.com/what-is-defi-and-why-is-it-the-hottest-ticket-in-cryptocurrencies-144883