DeFi investors expect massive asymmetric returns

Decentralized Finance (DeFi) has emerged as a New Vector for the financial system, Finance 2.0., with great growth potential over the last two years. It's an ecosystem of financial applications (d'Apps) that are built on top of a blockchain, aiming to wholly replace the existing financial legacy infrastructure of banks, lenders, insurers. In contrast to the traditional financial system, which requires an upgrade, DiFi blockchain's decentralized architecture allows increased security, audibility and interoperability ("lego feature").

The Total Value Locked (TVL) in DeFi protocols TVL has doubled since early August, surpassing $8 billion. While $8B is a relatively tiny amount by conventional financial sector standards, the DeFi sector is expanding at an impressive pace.

Dan Morehead, Ceo of Pantera's Bitcoin fund who predicted Bitcoin Exposition Back in 2013 says DeFi Market Could hit $400 Billion, outpace BTC. He thinks that "there is much more upside in those small altcoins DeFi protocols".


The top five DeFi platforms in terms of valuation include Aave, Maker (both for the lending category), Curve Finance (DexEs), YearnFinance (assets), Synthetix (Derivatives). Those top5 are