DeFi Can 'Transform Global Finance': Wharton
The Wharton School of the University of Pennsylvania has released a report titled “DeFi Beyond the Hype,” produced by the Wharton Blockchain and Digital Asset Project in collaboration with the World Economic Forum.
According to the famed business school, the DeFi industry has the potential to transform global finance. To date, however, it has yet to fulfill the hype.
“DeFi has the potential to transform global finance, but activity to date has concentrated on speculation, leverage, and yield generation among the existing community of digital asset holders,” the report said, adding that the novel industry is exposed to many risks.
DeFi Pulse, a data platform tracking the growth of DeFi, indicates that there is more than $54 billion locked into the sector. This figure was just under $1 billion last year.
Amidst the growing industry, the Wharton report claims there are six chief uses within the sector: stablecoins , decentralized exchanges (DEXs ), credit, derivatives, insurance, asset management, and “auxiliary services,” including wallets and oracles.
