Catalyzed by its growth in market cap and trading volume, decentralized finance (DeFi) has made a seat at the global traditional finance (TradFi) industry table. While DeFi was once thought of as a quixotic project, it is now undeniable that bit by bit, its permissionless, transparent, and trustless design has eaten away at TradFi’s stranglehold on finance by making it accessible and fun for everyone. This year will go down as the year the sleeping DeFi giant awoke, and for 2022: get ready for The Great Decentralized Derivatives Flippening.
Just like the rise of the internet, smartphones, and cloud computing, DeFi is the next leap forward in global finance. Centralized, incumbent, corporate gatekeepers of financial products and services are being replaced with decentralized, open, and permissionless protocols that were once looked down on as a pie in the sky pipe dream. The total value locked (TVL) for DeFi tokens, decentralized apps (dApps), and protocols continue to appreciate exponentially, alongside developers who are improving the tooling for scale and mainstream use.