Over the last year, decentralized finance has been the hottest topic of discussion in the crypto world, pushing the entire industry to new heights, developing innovative applications for the technology, and making financial services more accessible.
It intends to place economic infrastructure back in the hands of the people, and just like how TCP/IP facilitated the growth of so many enterprises on the internet, decentralized finance is bringing business onto the blockchain.
Last year, the introduction of automated market makers gave DeFi a much-needed boost. The total value locked into decentralized finance platforms sat at around $1.2 billion in June 2020 — a metric that had grown nearly a hundredfold by May 2021.
Liquidity mining fuelled the sudden surge in DeFi usage around the world last year, giving people access to additional tokens beyond the standard interest rewards. The game-changer, however, was how these platforms allowed users to farm their respective tokens to partake in its governance systems.
Though 2020 was a