Decentralized Finance (DeFi) has grown as one of the most popular use cases in the crypto ecosystem over the past few years. Thanks to smart contracts and innovations like Yield Farming, everyday users have gained unprecedented interest in their crypto (borrowing and lending).
Some of these smart contract lack code auditing and suffer from security vulnerabilities, others prove unsustainable. But make no mistake. In a few years, it will become clear that the emerging wave of protocols have set larger forces in motion.
Today's most promising DeFi projects all share a similar vision for the future: becoming a new opportunity to bridge the gap of global banking inequality, Taking Uniswap as an example, besides the natural characteristics of decentralized protocols such as security and anonymity, on the one hand, it allows ordinary users to provide liquidity and become market makers, so that the public can share the benefits of transaction fees
DeFi and centralized exchanges are complementary
There is no direct path from point A to point B. The most popular DeFi apps are all still dwarfed by most centralized exchanges that wield enormous amounts of power and influence within the crypto industry.
It is more convenient for users to take part in the application layer like a centralized exchange, as it offers a compelling combination of easy-to-use devices and services that end users understand better than most DeFi applications.
Changpeng Zhao or CZ is the founder and CEO of Binance, which operates the largest digital asset exchange by volume, said: ”The future of the industry lies in decentralization, and with the momentum increasing it’s time to go all-in.” It looks as though rather than driving the market as innovators, centralized exchanges will play a role as an infrastructure provider for pioneering projects.
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