The cryptocurrency industry has experienced a rapid growth in the past decade since the advent of Bitcoin. The first cryptocurrency opened the financial world to a world of possibilities using decentralized ledger technology (blockchain).
This development has given rise to a new sector of finance that has experienced a massive boom in 2020 named decentralized finance (DeFi). As of 2019, there was only $275 million worth of total locked-in value of crypto assets in the DeFi economy. 2020 gave rise to the massive adoption of DeFi with the total locked-in value rising multiple folds to its current value of $11 billion+.
However, it is important that you understand the core values of DeFi as several platforms have sprung up in recent months. Decentralized finance platforms operate decentralized governance based on blockchain technology and decentralized information feeds which determine interest rates and currency values.
Since there are tons of DeFi projects in the market, it is easy to get lost