DeFi have the potential to transform global finance, but today activity is more focused on speculation with leverage and yield generation. This opinion was expressed by experts at the Wharton School of Business at the University of Pennsylvania.
The researchers identified six main uses for DeFi: stackablecoins, decentralized exchanges, credit, derivatives, insurance, asset management and "ancillary services" such as wallets and oracles.
DeFi can reduce market disruption and transaction costs in trading and allocation of financial assets. Other benefits include increased transparency, greater stakeholder control, improved access to markets and faster settlement.
The researchers also noted the sector's vulnerabilities: fraud, regulatory uncertainty and immature technology. The authors admitted the threat of hidden centralized control.
Recall that cryptocurrency funds are increasingly interested in the DeFi sector, according to a recent report by consulting firm PwC.
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