DEFI ANALYTICS AND APPLICATIONS

The GROWTH OF PRODUCTS

Among the 100+ products (and growing)- a list of products and services running decentralized finance applications we have these sets of projects that provide deep Analytics for decentralized finance. Defi Pulse is one of them ( https://defipulse.com/). A clear aspect of this market is how the Maker platform that we have blogged about repeatedly has dominated the discourse both in terms of decentralized governance, ecosystem participation and value locked up and distributed among their users. As of date, approximately $700 million has been locked up on five categories i.e., lending, decentralized exchanges, derivatives, payments and assets.

Among the different forms of Defi applications we see evolving and documented on Defi pulse are the categories of lending markets (Cash loans or crypto-loans which can collateralize against the borrower’s own crypto-currency holdings), decentralized exchanges where users exchange crypto-tokens with each other, derivatives (both first order and second order ones), payment systems such as Lightning network, etc. and asset securitization mechanisms.

ASSET SECURITIZATION

The asset securitization platforms though have higher potential for growth, if legal blockades against cryptocurrency based smart contracts are entirely  removed and the legal mechanisms to enforce these (probably through other layers of smart contracts) are figured out by these audiences.  As an example, if someone were to securitize a 1 acre land holding, and were to sell 10% of the corresponding tokens to a particular individual in exchange for either another asset (token or cash or an equivalent), then would such a token sale be legally valid. There are already several attempts do this both from a legal and from a technology standpoint – though a successful implementation could possibly mean a shift in many areas.

Here is an example :- https://consensys.net/blockchain-use-cases/real-estate/