DeFi is a new technology
Based on the transparent and decentralized blockchain technology, Decentralized Finance (“DeFi”) is creating a new peer to peer financial system, (the internet of value), in which, amongst other prerogatives, everybody could be a lender (provided he/she has assets to lend) and everybody could be a borrower (provided he/she has assets/resources to collateralize) via smart contracts.
DeFi is creating step-by-step a new financial system
DeFi offers a variety of financial services in an open, permissionless environment that does not rely on intermediaries like custodians, central clearing houses or escrow services, as these roles are assumed by blockchains and smart contracts.
For example, one can acquire U.S. dollar (USD)-pegged assets (so-called stablecoins) on decentralized exchanges, move these assets to a decentralized lending platform to earn interest, or add these assets to a decentralized liquidity pool or an on-chain investment fund.
TOBAM has developed its DeFi investment capabilities and research on the topic since January 2021 and is running live investments since April 2021.
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