Decentralized finance (DEFI) is a revolutionary change in the financial landscape, offering a blockchain -based system that facilitates transactions without relying on traditional intermediaries such as banks or brokerage houses.
While the DEFI sector experienced a difficult period until 2022 and at the beginning of 2023, the second half of 2023 saw a significant resurgence. This growth has been largely fueled by anticipation and possible approval of Crypto Spot (ETF) Funds (ETF) in the United States, reporting a central moment for digital assets.
These movements were a major step towards the mixture of digital assets with traditional financial products, a transition which was more motivated by the increasing maturation and institutionalization of the cryptographic ecosystem.
This is obvious in the development of other products and services, such as:
- Tokenization
- Liquid
- Derivatives and future
DEFI has now exceeded retail users, more integrated into traditional finance while institutions are starting to integrate the DEFI protocols into their operations. The world DEFI moves at an exceptionally fast pace, with new technologies and platforms that are constantly emerging, which makes it a complex and confusing space for investors.
This guide explains how these key and other technologies shape the evolutionary DEFI landscape.
What are decentralized exchanges?
Decentralized exchanges, known as Dex, facilitate direct trading of cryptocurrencies between users through intelligent contracts, eliminating the need for central authority.
These platforms allow users to maintain control of their assets throughout the trading process. Some popular Dex include Uniswap, Pancakeswap and Dydx.
What is DEFI asset management?
The DEFI asset management services aim to make investment simpler and more accessible.
They often use automated strategies to maximize performance without the need for constant monitoring. Some examples include Galaxy Asset Management and Maple Finance.
These systems are non -guardians, which means that users do not have to abandon their private keys or transfer their funds. An example is funding for subsistence, which automates yield farming strategies to optimize yields.
What are agricultural yields and marked out?
Performance farming allows users to win rewards by providing liquidity to a protocol. This is done by depositing the cryptocurrencies in a liquidity pool; In return, the user receives part of the negotiation costs.
The clearing is to lock the assets to help secure and execute a blockchain in exchange for awards.
Liquid staggered is a more recent technology where users mark their crypto, but receive a liquid (LST) token in return which can be used elsewhere in DEFI while their original active ingredients are locked. The STAKED SOL (LSSOL) collective liquid floor on the Solana network is an example. Another is jitosol, one LST by Jito Network.
The director of assets Vaneck filed an S-1 recording to the SEC to launch an ETF according to the jitosol.
In addition to the implementation options for challenges, centralized exchanges like Kraken facilitate the shuttle for users who want a simple and guardian experience, and they offer more and more access to LSTs and enlarged development products.
How do I defi loan and loan protocols work?
Loan and loan platforms allow users to lend their cryptographic assets and gain interest or borrow assets by providing guarantees. Unlike traditional loans, Loan DEFI protocols often require borrowers that they have too collateralized their loans. Interest rates are generally set by supply and demand on the platform via an algorithm.
Examples of loan platforms include Aave, Compound and Makedao.
Aave is available on several blockchains, notably Ethereum, Avalanche and Aptos, making it one of the most accessible and innovative loan protocols today.
What is the infrastructure DEFI?
The DEFI space includes companies that provide fundamental technology and tools for the construction and use of DEFI.
Circle, the transmitter of the USDC Stablecoin, associates with Fireblocks to launch a new blockchain called ARC, which is suitable for businesses and optimized for stablescoins. Meanwhile, Coinbase Global (Nasdaq: Coin), a great exchange of crypto, launched a new application called base, which combines a cryptographic portfolio, trading, payments and social media. Coinbase also plans to launch Nano Perpetual Futures for Sol and XRP in the United States.
To increase its Stablecoin payment services, Ripple plans to acquire a stablecoin payment platform called rail.
What are Stablecoins?
Stablecoins are cryptocurrencies designed to minimize price volatility by fixing their value to a stable asset, such as the US dollar. There are different types of stablecoins, including:
- Stablecoins fiat-collateralized, which are supported by reserves held in traditional currencies.
- Crypto-collateralized stable stables, which are supported by other cryptocurrencies.
- Algorithmic stables, which use algorithms to maintain their PEG without direct guarantee.
The examples include Tether (USDT), Circle Internet Group (NYSE: CRCL) USD Coin (USDC) and DAI (DAI). Coinbase, Kraken and Gemini are well-known platforms for stable trading and other cryptocurrencies.
In addition, Metamask, an auto-us cryptography portfolio, should launch its own stablecoin, Metamask USD (Musd), which will be issued by Bridge and propelled by M0 Liquidity.
What is tokenization?
DEFI platforms reflect real assets, such as real estate or actions, in digital tokens on a blockchain. This makes these assets accessible on the chain, effectively doing the traditional finance and defi finance.
There are several companies and platforms at the forefront of this trend.
JPMORGAN CHASE (NYSE: JPM) has a tokenized debt platform, Kinexys, which allows customers to exchange and adjust debt instruments in tokens, a service that State Street has also joined.
In addition, Backed Finance recently joined Kraken to extend his Xstocks product, which tokenizes stocks, with the Blockchain Tron. Meanwhile, S&P Dow Jones indices would be in talks to obtain licenses and list the tokenized versions of its references with exchanges, guards and DEFI protocols.
Ethereum and Solana also have a major role in the tokenization movement.
Ethereum is favored by institutions for its intelligent contracts. DBS Group Holdings (SGX: D05), a great financial institution, recently announced its intention to launch structured notes tokenized on the Blockchain ETORO (NASDAQ: ETOR) plans to launch tokenized versions of the actions listed in the United States on the same network.
For its part, Solana was recently selected by Galaxy Digital (NASDAQ: GLXY) and Superstate for the launch of Glxy, a tokenized public part.
What are blockchain oracles?
These services connect intelligent contracts to the real world data, allowing them to execute according to out -of -chain information. Chainlink is a prominent blockchain oracle. Recently, it has teamed up with Intercontinental Exchange to provide exchange and precious chain metals. ChainLink also has its own chain cash vehicle, ChainLink Reserve, which can support the financing of awards and development.
What are perpetual future?
Perpetual term contracts, called Perps, are derivative contracts that allow traders to speculate on the price of an asset without expiration date. It is a high -risk financial instrument that uses a lever effect to amplify gains or losses.
Coinbase has a derivative arm, Financial Markets Coinbase, which launched US Perps on July 21, 2025. On September 22, Coinbase derivatives will expand its product suite with the launch of Equity Index Futures.
Coinbase acquired Deribit, the largest platform to negotiate Bitcoin options and the main exchange of global crypto options in volume and open interest, in an agreement of US $ 2.9 billion in May 2025.
Kraken also offers Perps compliant in the United States.
Take -out investor
While DEFI continues to mature and arouse the interest of traditional financial institutions, its integration into conventional finance is accelerating. With continuous progress, DEFI is about to redefine the way in which financial transactions are carried out, making it a pivot area to be monitored in the future of finance.
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Disclosure of securities: I, Meagen Seatt, does not challenge any interest in direct investment in a company mentioned in this article.
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