Too Long; Didn't Read
Finance just makes more sense on-chain. The main impediments to successful, flowing finance are counterparty risk, vast expensive bureaucracy, siloed economic activity and unnecessary friction between assets. The blockchain and DeFi have solved or will solve these problems in the near future - and that’s why there is so much excitement in the space.
Although instruments like lending and borrowing are already in full swing on-chain, there remains other uncharted financial products: price protection, risk management, complex swap products and credit derivatives which are still exploring their infancy on-chain. This next layer of finance promises exponential growth in the DeFi space, so let’s take a look at some of the DeFi protocols that are helping to shape the future of finance.