DEFI only emerged a few years ago yet has already grown to manage over $200bn in crypto funds. There is clearly a huge demand for services that enable crypto investors to generate active returns from their funds rather than just hodling.
However, DEFI’s immaturity, decentralised nature and allure of financial opportunity have generated significant risks that make it feel a bit like the Wild West with no Sheriff. Those risks will gradually be addressed, whether through innovation or regulation, but right now, anyone thinking about committing their crypto to DEFI applications should do so with a clear understanding of the risks involved.
Leave a Reply