Calculating the good, bad and boring in Defi - City AM

At its best, Decentralised Finance (DeFi) turns money into composable lego blocks. They can be combined together for different use cases. Players can put other legos on top of each other. The legos have high levels of liquidity, composability and can be used by anyone in a permission-less way. But these advantages come with a high and often still underestimated degree of risk.

Calculating the good, bad and boring in Defi

There is a feeding frenzy around decentralised finance (Defi). The most popular decentralised exchange Uniswap has surpassed more than $3bn locked in it, and there was a peak in October of more than $12.5bn of assets in Defi. Much of the excitement has been driven by the returns earned for providing liquidity for ‘automated market […]