DeFi
DeFi’s summer comeback renews questions about sustainability of 20% yields
Another “DeFi Summer” is taking place in what has traditionally been the most speculative corner of crypto, with activity surpassing levels seen before the collapse of the stablecoin TerraUSD which sent the sector shaken almost two years ago.
Once again, stable coins are central to the activity of decentralized finance, whose proponents argue that eliminating middlemen such as banks and brokers through the use of software applications will democratize finance. Stablecoins, which track a real-world asset like the dollar, allow participants to avoid converting to and from fiat currency on a moment-to-moment basis in an often volatile industry.