DeFi or the decentralized financial sector is one that not everyone has to lean on regarding banks, bankers, exchanges, or brokers. All the duties carried out by such people in these institutions are taken under several sets of technologies. These include decentralized storage of information, also blockchains as well as smart contracts. Ever since the Great Recession, the banks and institutions have never properly recovered with such great faith. The banking history has been shaky. But there seems to be a glimmer of possibility to bring this hope and confidence back. But not in banking. In DeFi.
What we have seen here is that the traditional banking or financial system has been somewhat slow in all these years. It also always takes longer to develop. But in just a handful of years, what the DeFi sector has done is unparalleled, by building a parallel universe of the financial sector. It seems more efficient, quicker and includes exchanges, lending protocols, as well as various payment systems. The stable coin market has also been saying a tremendous growth rate.
DeFi’s Success Over The Years
DeFi Aur decentralized financial system has little but major differences against the traditional financial system. Retail users in the decentralized financial sector always have the potential of expecting returns on their capital savings. The annual percentage in the decentralized financial system on deposits is about a hundred percent higher than that given by traditional banks. While banks can provide 0.6% to 0.9% on savings and deposits, the sector can offer more than 11% on stablecoins.
Over several years the banking system has taken its time to develop and innovate its systems. But in such a short period, the amount of Innovation that has taken place in the DeFi sector remains unparalleled.
