DeFi Unscathed Amid a Tumultuous Period For Cryptocurrencies 

Varying opinions were kindled as a result of the current market condition. The decentralized economy is perceived by critics to have hit rock bottom since the May flip. However, the decentralized finance (DeFi) sector of the crypto industry has been waxing stronger with notable developments to back it up. 

The DeFi sphere has been a persistent success. In a way, it has cushioned the bleak days of centralized protocols. With the clog of activities in the sector at this time, DeFi could be a great vehicle to ship in the adoption of digital assets on the mainstream. 

Just about 12 months ago, the DeFi space could only pride itself with a value of $1.05 billion in Total Value Locked (TVL). However, today DeFi TVL stands at over $104 billion. It is perceived that DeFi could surge below its present level and incorporate more features. 

A Lot Of Features Available With DeFi

Decentralized finance has given a whole new perspective to the use of the blockchain. Investor Mark Cuban confirmed this fact as he said that the sector can give him the leverage to be his banker and take loans to trade if he gets liquidated – all from DeFi. 

The fact that DeFi protocols offer rewards through yield farming makes the space all the more worthwhile. Yield farmers generate returns when they stake, lend, or borrow digital assets across protocols. This feature had kept traders in the space despite the bleeding market as they could still earn yields without enhanced volatility. 

In the same vein, the journey of both Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) hasn’t been a joyride, especially for centralized exchanges. The sphere had lost over  $7 billion in liquidated futures positions in a single day. This wasn’t the same with DEXs as they lost only $700 million in two days, offering a better leverage to traders. 

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