When my attention was caught by Mati Greenspan's tweet talking about $900 Million dollars are currently locked in #DeFi projects, I got curious. But I was even curious about how to check for myself if that is actually true as I learnt to do my own research to stay on top of social media content and clickbait headlines.
The website where Mati copied the graphics from is: https://defipulse.com/
As you can see #DeFi projects considering different products: Lending, Dexes, Derivatives, Payments and Assets. Lending in the form of 'Maker' is currently the project where the most money is locked in.
I was reading a lot lately to get a better understanding of what #DeFi project I should pay most attention to. So to make a plan for myself the first step is figuring out what #DeFi is. This might be different for someone else if you haven't done much with crypto before. But I feel comfortable so jump straight into it, as I have a solid understanding of Bitcoin and Ethereum, smart contracts and those bits and bops around these topics.
I would define #DeFi as decentralized financial products based on the Ethereum ecosystem by utilizing their smart contract system and DApps (decentralized apps). This might be not a description which you will find on Wikipedia but for now, I like to keep it simple and leave it like this.
My biggest motivation is to figure out, is there a #DeFi project which will provide an interest rate that can compete against short/long term holding of Bitcoin. What is the risk of dealing with those #DeFi products? Is there a chance that investing in one of those #DeFi projects lead to more $$$ than just speculating on the volatility by technical analysis?