The sphere of decentralized finance (DeFi) is ripe with specific use cases serving specialized purposes. The concept of decentralized autonomous organizations (DAOs) is certainly relevant to conversations about DeFi, but it does not necessarily fit into the DeFi box—its potential applications are simply too great to be relegated to decentralized finance alone.
The uninitiated could be forgiven for thinking that “yield farming” refers to the latest crop of corn or peanuts. Rather, the term refers to a cutting-edge trend by which those who own cryptocurrency can reap guaranteed, steady returns.
One concern that crypto skeptics might share is that cryptocurrencies such as Bitcoin are subject to significant price fluctuations. This, they might say, makes cryptocurrency impractical as a medium of exchange.
Lending has emerged as one of the most popular and practical use cases within the sector of blockchain-powered financial products known as decentralized finance (DeFi). The ability to borrow value-backed assets without the middleman, you say?
In our recent study Perceptions and Understanding of Money — 2020, we surveyed Americans to gauge how well they understand the mechanisms of money, including concepts such as quantitative easing (QE). We hope that this “Everything You Need to Know” series will help improve understanding of money-related topics and issues which could not be more relevant today.