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.


Markets

Crypto Lender Maker Turns to Staked Ether to Reduce USDC Influence

The development is part of a move away from centralized crypto products such as stablecoins.

Venture capital firm Variant commits $450 million to its third crypto-focused fund. (Horst Schwalm/Pixabay)

Learn

Aave: Understanding the Crypto Lending Platform

Aave connects crypto borrowers and lenders directly, removing the need for a middleman.

(MidJourney/CoinDesk)

Opinion

There’s No Future for DeFi Without Regulation

America’s first experiment with DeFi didn’t end well and the second one is going badly, too. Can we learn the lessons of history to make the third try a success?

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Tech

Cream Finance Exploiter Converts $1.75M in Stolen Funds to Bitcoin

The decentralized finance application has been exploited three times since it went live in 2020.

(Marstourist/Pixabay)

Policy

Near Protocol Forms Working Group to Promote DeFi Governance

The Near Digital Collective is a self-governance initiative aimed at further decentralizing the Near ecosystem’s decision-making by moving it to a blockchain.

Illia Polosukhin, Co-Founder, NEAR Protocol (Stephen Lovekin/Shutterstock/CoinDesk)

Finance

Hodlnaut Judicial Managers Weigh Unwinding Crypto Lender's Assets Before Ethereum Merge

The court-appointed managers of Hodlnaut in Singapore say they are concerned about incorrect pricing being relayed to smart contracts after the blockchain's software upgrade.

Hodlnaut may unwind assets ahead of the Ethereum Merge. (Paxson Wolber/Unsplash)

Finance

Algorand Foundation Declares $35M Exposure to Troubled Crypto Lender Hodlnaut

Hodlnaut was placed under Interim Judicial Management after suspending withdrawals from its platform in August.

Algorand Foundation has declared a $35 million exposure to beleaguered crypto lender Hodlnaut. (DRL)

Videos

CoinDesk’s New Market Index Family of Indices Now Covering a Total of 148 Digital Assets

CoinDesk launches the CoinDesk Market Index (CMI) family of Indices, covering 148 digital assets across six sectors including DeFi, Currency, Smart Contract Platform and more.

Recent Videos

Videos

Are DeFi Platforms Centralized?

Reacting to SEC Chairman Gary Gensler telling CoinDesk most cryptocurrencies are securities, Ashley Ebersole, former SEC senior counsel and current chief legal officer at 0x Labs, discusses the outlook for regulating DeFi and the crypto industry at large.

Recent Videos

Opinion

Why DeFi Protocols Are Limiting ETH Borrowing Ahead of Ethereum’s Merge

Aave and Compound voted for precautionary measures to prevent airdrop hoarders from sucking up their liquidity.

(Possessed Photography/Unsplash, modified by CoinDesk)