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

IPOR Labs Unveils Protocol to Make DeFi Credit Markets More Transparent and Stable

Traders will be able to hedge, arbitrage and take directional positions based on interest rate movements to manage risk across their credit portfolios on the Ethereum blockchain.

Credit Market Structure Comparison DeFi and TradFi (IPOR Labs)

Tech

DeFi Firms Iron Bank, Yearn Finance Join Layer 2 Protocol Optimism

Developers of the DeFi protocols said companion blockchain networks offer improved security and capital efficiency for users.

After weeks of delays, the VanEck Bitcoin Strategy ETF is ready to launch. (Unsplash, modified by CoinDesk)

Opinion

Stop Attacking DeFi Founders for Complying With the Tornado Cash Sanction

Crypto projects are being criticized for censoring use of their websites.

(Andrew Seaman/Unsplash, modified by CoinDesk)

Videos

DeFi Platform Acala’s Stablecoin Plunges After Hackers Exploit Bug

Polkadot-based decentralized finance (DeFi) platform Acala’s native stablecoin, aUSD, depegged on Sunday, plummeting 99% after hackers exploited a bug in a newly deployed liquidity pool to mint 1.28 billion tokens. "The Hash" team discusses the implications for the state of stablecoins, open finance, and regulation.

Recent Videos

Learn

DeFi vs. CeFi in Crypto

Decentralized finance is a core value in crypto, but DeFi platforms can have a steep learning curve. Centralized finance platforms can provide an easier and more familiar point of entry for people.

(Rachel Sun/CoinDesk)

Tech

DeFi Platform Acala’s Stablecoin Falls 99% After Hackers Issue 1.3B Tokens

A bug in the protocol’s newly deployed iBTC-aUSD liquidity pool left the door wide open for hackers to exploit.

The Polkadot pavilion on the Promenade at the World Economic Forum in Davos, Switzerland (Sandali Handagama/CoinDesk)

Opinion

Let Ugly Ducklings Grow: Why Crypto Needs a Safe Harbor

Too much much regulation may hinder the development of viable decentralized models.

(Rachel Sun/CoinDesk)

Tech

Crypto Exchange Binance Recovers $450K Stolen From DeFi Protocol Curve.Finance

The world's largest exchange is working with law enforcement to return the funds.

CoinDesk placeholder image

Videos

MakerDAO Founder: Crypto Is a 'Force for Good'

MakerDAO founder Rune Christensen weighs in on how DeFi projects can "interact with the real world economy" and do things like invest in real estate and renewable energy. Christensen also shares his thoughts on the future of stablecoin regulation.

Recent Videos