DeFi (decentralized finance) is the new hot sector in the crypto sphere, and it is growing at a fast pace to take over the conventional financial systems, giving decentralized freedom to the users all across the world. For instance, InstaDApp, and Compound, which are ETH based decentralized platforms boast 25 million U.S. Dollars and 98 million U.S. Dollars respectively in their contracts. The CEO of Compound- Robert Leshner said-
If or when Compound scales, this will lead to some really interesting improvements in market structure, namely, fairer prices.
On the other hand, ConsenSys, the blockchain incubator, thinks that the decentralized finance projects are mushrooming these days and are becoming very popular. The company thinks that the current state is going to contribute massively to the future of the crypto industry.
The DeFi based blooming industry also consists of insurance platforms, infrastructural markets, digital asset platforms, investment companies, and start-ups. It is estimated that more than 11 million U.S dollars have been issued through ETH Dharma protocol in contracts. These contracts are available in more than fifty ERC 20 compatible tokens. The business development manager of the company- Max Bronstein said-
We envision a world in which anyone can compound their wealth or take out a line of credit from anywhere in the world. No bank account or credit checks required.
Another decentralized protocol platform- Uniswap, boasts around 17 million in its contracts. The platform’s main focus is to create open finance products on the exchange and on the ETH. The platform has also managed to get investments from Paradigm, which is a San Francisco-based venture capital firm. The DeFi ecosystem includes many other companies such as Augur (REP), and Bancor (BNT), among others. The way and the pace at which DeFi is growing, that time is not far off when the growth of the DeFi based companies will erase the dependency on traditional methods such as having a bank account or using credit checks, etc.