Decentralised finance (DeFi) vs. centralised monetary policy

Decentralised Finance (DeFi) is built around the idea of creating a decentralised financial ecosystem that operates without the need for traditional intermediaries such as banks, brokers and financial institutions. The main companies that are actively providing infrastructure in the DeFi sector are Uniswap, SushiSwap, Curve, Balancer, Aave, MakerDAO, Nexus Mutual, Cover Protocol, USDT, USDC, DAI, Melon, Set Protocol, Chainlink., Compound Labs Inc, Curve Finance, Synthetix, Bancor Network and Badger DAO. It has been estimated that the DeFi sector has grown by in excess of 45% p.a. through to 2023. DeFi is primarily powered by blockchain technology, with Ethereum being the most popular blockchain platform for hosting decentralised applications (dApps) and services; in part, this is because Ethereum was the first blockchain to run smart contracts and Ethereum still has the most number of active developers. At the heart of DeFi is the use of smart contracts which are self-executing contra…