The booming decentralized finance (DeFi) industry is rapidly evolving, offering varied opportunities to investors. As the sector matures, many investors are shifting away from 'Classic Decentralized Finance' such as Ponzi farms, to 'Real Decentralized Finance'. This shift is proving to be beneficial, as the latter offers investors higher yields and transparency in comparison to the former.

Real Decentralized Finance — also known as ‘Yield Farming’ - essentially permits users to get regular returns on their investments. This works by staking an asset to earn rewards, which are then reinvested back into the market in order to make more interest. This form of yield is found in various DeFi protocols, such as Uniswap, Compound, and Maker.

Over recent months, the DeFi market has seen strong growth, with the amount of funds allocated to various decentralized protocols rapidly increasing. The total combined value of all DeFi assets has seen a 20-fold growth since the start of 2021, now standing at more than $100 billion. At the same time, Ponzi scams have dropped off significantly in terms of attention, highlighting the sector’s newfound preference for real yield.

The shift to real yield has been buoyed by the increasing liquidity of various assets within the DeFi industry. For example, Uniswap v3 went live on BNB Chain earlier this month, while Maker token last August became the first asset to be listed on the Ethereum Futures exchange. By tapping into a wider data pool of liquidity, investors have had more opportunities to earn returns.

Overall, this shift away from Classic Decentralised Finance towards Real Decentralised Finance is proving to be beneficial, as investors are able to earn significantly higher yields on their investments. The increase in liquidity and shift to real yield is helping to further develop the DeFi sphere, and providing investors with more varieties of opportunities to earn returns.



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