Golden Horse

Investment Bank
The Uprising of DeFi World

June 14, 2021

By Jonathan Chee
GHIB Investment Banking Manager

KEY POINTS
    • DeFi has risen extremely fast and is seeing total value locked rose from U$100M to U$15B+ collateral in less than 24 months.
    • Decentralized finance is now a new type of financial structure in our physical world.
    • DeFi is the fusion of traditional banking with blockchain technology.

DeFi world gained popularity and grew exponentially in 2020. Since 2015 with the emergence of MakerDAO, it has risen extremely fast and is seeing total value locked rose from U$100M to U$15B+ collateral in less than 24 months. This is only in the crypto lending space. DeFi suite of financial products has more than U$67 billion values being locked which are being traded on DeFi exchanges and various centralized exchanges, it shows how swiftly it is competing with our ailing banking and financial system. The fiat currency is losing its charm and its value.

DeFi Total Value Locked (as of 10th of June 2021): Source DeFi Pulse

The recent crash of the crypto market did not take a toll in DeFi growth. Decentralized finance has become a new type of financial structure in our physical world. Digital currency has no limitation, and everyone of us can benefit from the blockchain technology.

Here comes the big question,

What is DeFi?

DeFi or Decentralized Finance is an entire financial ecosystem or umbrella that offers a range of financial products and services, such as lending, borrowing, fixed income, insurance, and etc.  It is made available to the masses on a public decentralized blockchain network without the need of any authority acting as the intermediary.

In layman’s terms: DeFi is nothing but the fusion of traditional banking with blockchain technology.

There were a number of innovative projects that surprised the crypto world, such as the Polkadot, NFT, Matic, and Cardano. The performance is beyond expectation and the impact of the current dip increased the investment as well as the popularity of DeFi.

DeFi projects are also transforming traditional loan mechanisms to digital, and the current decline complements this trend. If you need money and is hesitant to sell crypto assets manually, you can try DeFi projects. Most users use crypto assets on hand to do mortgage lending and there are thousands of Platforms that can provide crypto asset mortgage lending services.

Decentralized exchanges are now in the lead in providing investors with multiple resources to increase crypto wealth management. If a user has crypto assets worth U$1,000, they can visit DEX exchange and exchange or trade for better crypto asset, as there are no worry about hidden fees and charges. The DEX spot trading volume continues to surpass the central exchange trading volume, as per the data transaction volume growth rate of DEX which has exceeded 150% and is now a major threat and challenge to the monopolistic central exchange.

DeFi also offers many types of derivatives including futures, options, leverage and insurance. You can use your crypto assets on hand for long and short-term direct trading of a number of alternative derivatives such as gold, silver and fiat currencies.

Food for Thought:

“The DeFi ecosystem has grown exponentially in recent years and it is now having over U$61 billion values ​​locked into the system. This signifies that power is now in the user’s hands and that wealth creation will become a democratic right for the greater good of humanity.”

What’s Next?

Stay tuned and follow our social media of GHIB, where we will consistently uncover and update the news in the trend of the Crypto world and blockchain development.

 

About Us

Golden Horse Investment Bank (GHIB) is one of the world’s leading digital investment banks that leverages the power of blockchain to transform the traditional financial system. Our proprietary Golden Horse blockchain is an advanced multichain blockchain system.

The GHIB was founded by Malaysia’s prominent entrepreneur, Tan Sri Lee Kim Yew. 

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