With junk bonds yielding less than 4% and sovereign debt ranging in yields from negative to 2%, investors have been settling for meager yields in bank deposits and the bond market. The revolution in decentralized finance (DeFi) offers some tempting yields and a completely new way to invest. Having crossed just $1 billion in value in June 2020, the DeFi space exploded to over $41 billion by February 2021. Nearly $18 billion is invested in lending platforms such as Maker, Aave, and Compound, while over $12 billion is invested in , such as Curve, Uniswap, and Sushi Swap.
- Keith Black