Decentralised Finance: Complete DeFi Overview & Outlook

► BTC Tipjar 🙏🏻: 35YDYtYAB999JxiXQXewzLvMGX4ki2d3WL

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⏰ Time Stamps ⏰

1:36 What is DeFi?
3: 09 DeFi Use Cases
6:59 How big is DeFi?
10:00 Future of DeFi
13:00 Potential Issues with DeFi
15:39 Conclusion

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⛓️ 🔗 Helpful Links 🔗 ⛓️

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📝 Simple Overview 📝

Decentralized Finance is one of the hottest topics on the crypto grapevine right now. That’s not surprising seeing that within the space of two years DeFi has gone from having less than $60 million locked in the ecosystem to nearly $800 million at the time of this video’s release.

💰 What is DeFi? 💰

DeFi takes products and services from traditional finance and decentralizes them by replacing middlemen with smart contracts.

👯 What Are People Doing In DeFi? 👯

Today, the most common uses of DeFi are:

Borrowing money
Supply money to earn interest

However, the key thing here is that this all takes place outside of the traditional banking system. That means no KYC, no need to get approval from anyone, no credit scores, no requirement for a bank account and no descrimination based on where you live.

🏦 The DeFi Ecosystem 🏦

The emerging DeFi ecosystem is already home to a wide range of platforms like DeFi loan comparison sites, automated trading solutions, lending platforms, non-custodial margin trading platforms and much more,

🔮 The Future of DeFi? 🔮

Decentralized Finance has already seen phenomenal growth over the last few years. However, there are over 1.7 billion unbanked people in the World excluded from the traditional financial system who could benefit from DeFi.

Imagine if you are living in a developing country with high inflation. DeFi gives you the opportunity to get out of your local currency and hold USD via stable coins like Dai. Even better, you can then take that Dai and lend it out at 5+% interest on DeFi platforms like Compound Finance. DeFi already offers people the tools to hedge out local currency risk and that’s a pretty big deal in countries like Venezuela.

Although DeFi loans currently need to be over-collateralized, I imagine it will only be a matter of time befer under-collateralized loans are available via a form of DeFi borrowing reputation system.

🤔 Problems With DeFi? 🤔

It’s hard for the average person to access DeFi and that's due to friction between the crypto and traditional finance ecosystem. That’s where tech solutions like Nimiq OASIS can come in by providing FIAT smart contracts which enable non-custodial crypto:fiat trades. This solution is set for launch this year in partnership with Ten31 bank and has been developed by the crypto project Nimiq. Adoption of this solution certainly has the potential to make it much easier for people to access the DeFi ecosystem.

Another major issue facing DeFi are smart contract bugs. These could result in DeFi users losing access to a significant amount of funds and it’s even more worrying seeing that bugs are not unheard of in smart contracts.

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📜 Disclaimer 📜

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.

#Defi #ethereum #eth #decentralised #blockchain #crypto #CDP #DAI

[KaylaLahti]

Watching this video a little over a year later and the amount on DeFi Pulse is 32.5 billion!

[janfolmer]

Glad I found your channel - well researched and very clearly explained.

[awizeone]

Hi Guy. I’ve been here since 2016. You are a newcomer to the space. I want to thank you for coming. We need more people like you. You deliver important content without the BS hype. Since I don’t have the time to do the research myself, I think I can speak for everyone here, so happy you are here doing great research and educating newcomers and early adopters to the inevitable global change to finance and freedom. Thank you Guy 🙏🏻👍🏼

[vabp]

Guy you're awesome, I'm glad I found your channel, will always be a subscriber of your newsletter!

[shubhamhudda]

Best video on Defi ever! So underrated! Make an updated video again guy! Congrats to that million ! :D

[jaybe]

thank you for your clear and structured insights without hyping everything beyond reason. exactly what I was looking for.

[bitman]

Been in crypto since 2015 but only recently discovered the fascinating world of DeFi. Ever since I have been fully immersed in learning and indeed participating and trying every interesting offer there is. Even by taking MakerDAO loans and buying DeFi fractional real estate to earn rent and property appreciation. Amazing stuff. Your channel is now one of my go to places and yes, I think DeFi has the potential to do what ICOs did but let’s hope without the many scams.

[jayferx]

Hey Guy, slowly going through your videos and learning. Great job on everything, keep up the good work!

[silverbacksworld]

Thanks Guy. It would be interesting to see you do a dummy run (example) of going from Fiat to DeFi. So we understand how the process can us ‘Newfie’s’ 👍

[savvyrb]

Love how you present the information and your perspective. I'll be subscribing and watching more of your videos. Thanks!

[jotstar]

Great video again Guy! Never been a fan of banks, why I love Crypto & the DeFi movement!... it’s going to be huge! Very Bullish on it! ETH, SNX, KAVA, REN, 0x, MCO, CEL & CRPT👌...

[JustinHyneswashplant]

great analogy with the pawn store and Defi; This video really helped me understand the topic as do all of your videos :)

[song]

Total value locked when this was posted in Jan 2020, $815.2 million.

Total value in mid Aug 2020, $6.5 BILLIONS!

[javierj]

This is the best crypto youtube channel by far!!! Thanks for your work!!!

[heenit]

I now understand fully the phrase 'Not your keys, not your crypto. Can't wait to check out the helpful links. Huge thank you :)

[GbaguidiTosso]

Très content de découvrir votre vidéo c'est intéressant et très explicite merci

[giak]

DEfi is great on EOS as well. I locked up my eos on a smart contract as collateral and received eosdt in exchange. I the then sold it for cash in my bank account. NO Bank, No middle man, just me and a computer. No late fees, I haven't payed one dime back in 6 months. When I want to retrieve my eos I start to pay back the smart contract. If eos goes up I can withdraw more $$$$ into my bank account. Awesome stuff.

[mardini]

Crazy how one year later, 44B are locked up now. Nuts man!!

[manteltje]

These videos are so packed with info I have to ration to 2 a day because it hurts my brain 🧠 🤯💥

[valentinarobledo]

Watching you throw the defipulse stat, while checking it today is amazing. 43.22B as of this post!