What’s New in DeFi, January 1 - January 13

January 13, 2020
What’s New in DeFi, January 1 - January 13

Congratulations on making it out of 2019, and welcome to 2020!

In keeping with our goal of keeping you apprised of the latest developments in decentralized finance, here’s the latest:

Binance published a report expounding on the “borderless” state of DeFi.

When one of the largest crypto companies in the world starts making DeFi noise, you know this can’t be a simple trend. Binance published a report on January 8 that goes into flattering detail on how transformative the prospect of decentralized finance can be (especially as it pertains to the Ethereum blockchain).

Two of the most interesting takeaways:

  • The number of active projects with 50 daily users or more nearly doubled in 2019.
  • The emergence of new DeFi companies is making a major difference in MakerDAO’s former dominance of the space — the company held more than 90% of the crypto community’s DeFi funds in early 2019, but that number is down to 50% now.

Coinbase published a beginner’s guide to DeFi.

Written by Coinbase developer Sid Coelho-Prabhu, this post on Coinbase’s Medium account presents the reader with an onramp from crypto at large to decentralized finance specifically. Coelho-Prabhu describes that DeFi projects carry out conventional financial operations without any middlement involved, their code is transparent and auditable, and it underscores the importance of interoperability.

He wraps the post with a roundup of major DeFi projects that readers can check out in order to continue familiarizing themselves with this concept.

There’s an all-time high of 3 million ETH locked into DeFi.

The crypto community is voting with its money — about $432 million in Ethereum so far — that decentralized finance is a powerful and transformative force. Quite a bit of that sum is tied up in MakerDAO’s smart contracts, but the report names other upstart services like Uniswap, DDEX, Compound, and the Nuo Network.

The DeFi sector hit a 250% ROI.

That number comes from this Bitcoinist report. Depending on when someone might have backed a DeFi service, that investment could have generated more income than an equal investment in Bitcoin over the same amount of time.

Brave New Coin calls 2020 “the year of DeFi.”

Conventional cryptocurrency topics are starting to become mainstream — Bitcoin is the subject of Bloomberg headlines, and it seems everyone has an opinion on Facebook’s proposed Libra currency.

But the thinking among many in the crypto space is that it’s actually decentralized finance in general that is the blockchain’s killer app. Only time will tell if DeFi can make its way into the limelight this year, but at least one publication is saying it will happen.

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