'Beyond DeFi' Paper presented at the 5th Symposium on Distributed Ledger Technology

Fri Dec 10, 2021



Decentralised Finance (DeFi for short) is a playground for the crypto-savvy and the crypto-rich. According to DeFi Pulse, at the start of December 2021, the total value locked in this new wave of finance was $107 billion USD up from $23 billion this time last year. That’s a staggering increase of $84 billion in 12 months.

But what is it DeFi really?

DeFi is finance for digital assets. It follows the traditional finance concept of locking something of value as collateral in anticipation of earning a reward or receiving a return sufficient to repay any loans received and ultimately, unlocking the collateral or, if returns are insufficient, forfeiting the collateral in the event of default. The difference between traditional and decentralised finance is that the collateral in DeFi is in the form of digital assets such as Ethereum or Bitcoin rather than physical assets such as land, buildings and shares and the reward or return is determined by a smart contract on a distributed ledger network and paid in cryptocurrency instead of a traditional legally enforceable paper contract and fiat currency as a reward.

What's next? DeFi + Real World Assets = Real World DeFi

We have been working for some time on bridging the traditional and digital forms of finance on our divisia E2EFiPLATFORM™. Achieving Real World DeFi by unlocking the otherwise inaccessible liquidity in Real World Assets will bring mass adoption. Want to find out more ?

You can watch the detailed presentation we made to the 5th Symposium on Distributed Ledger Technology held at QUT in November 2021 or download our Beyond DeFi PowerPoint pack.