You might have heard the term “DeFi” making the rounds in the cryptosphere. Like us, you may even have tried to understand what it was all about but given up due to the complexity, opacity and jargon surrounding its key aspects. Others have tried to shed light on its mysterious operations. The FT’s Miles Kruppa and Hannah Murphy, for example, noted as far back as the heady pre-pandemic days of December 2019 that DeFi operates as a broad umbrella term for blockchain projects that aim to eject human involvement in financial services by using smart contracts. To accomplish this, DeFi depends on the creation of “liquidity pools” and overcollateralised repo-style arrangements. Even so, DeFi, which stands for “decentralised finance”, remains a murky if increasingly hyped up
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You might have heard the term “DeFi” making the rounds in the...