Bitcoin was birthed in a post financial crisis era when skepticism and doubt were rampant. Our financial system had nearly collapsed and there was a public perception that the middle class had been left to foot the bill. The occupy wall street movement ultimately failed, but their slogan “We are the 99%" embodied the general public opinion of the time. However, aggressive monetary policy kept the economy humming along and with time the financial crisis was put into the rear-view mirror.

This policy has served some of America quite well. The trailing 10 years have seen the rise of technology…

Right now you can earn a lot of interest with your cryptocurrency through relatively simple means. There are many easy to use decentralized (Compound, Aave, Yearn) and centralized (BlockFi, Nexo, Celsius) options to choose from to earn yield.

Decentralized lending is attractive because it is transparent, i.e. you know exactly what your funds are doing and why you are earning yield. Moreover, the lending process is algorithmic — this allows you to develop a clear understanding of your risk profile. Lastly, there is a wider variety of options available since the entry barrier to creating a DeFi product is low.

There are many new developments happening in the world of DeFI, and a lot of uncertainty. The uncertainty comes from the recent sell off in cryptocurrencies, large transaction fees on the network, and an increasing number of hacks.

There is evidence that despite these setbacks the overall adoption of DeFi is growing. More users are entering the space, a greater fraction of existing crypto is being invested, and new innovations are coming out every day. Let’s start by taking a moment to understand some of DeFi’s recent failures.

The Iron Bank Fiasco

Not even Mark Cuban was spared when the price of the TITAN…

In case you didn’t know, cryptocurrency is innovating at a furious pace. And the latest technology being developed has the power to radically disrupt our financial system — perhaps sooner than you think. Decentralized finance (DeFi) is the agreed upon name for this crypto-native financial system that does not require intermediaries such as brokerages, exchanges, or banks to facilitate transactions. DeFi functions through smart contracts that are hosted on the blockchain that allow lending, borrowing, trading, and more.

The advantages of DeFi are pictured below

Making a fully decentralized system required a lot of extra work, but we can see…

Owen Colegrove

Particle Physics -> Quant Finance -> Co-Founder @ ChainVault

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