DeFi refers to a suite of financial services — lending, borrowing, trading, yield generation — built on public blockchains, primarily Ethereum. It aims to replicate and disintermediate traditional finance without banks or intermediaries. At its peak in 2021, over $180 billion was locked in DeFi protocols.
2018
MakerDAO launches DAI — the first major DeFi protocol
2020
DeFi Summer — Compound launches COMP token, yield farming mania begins
2021
Total Value Locked (TVL) exceeds $100B
2022
DeFi crashes 80%+ during bear market, numerous protocol failures
2023
DeFi rebuilds — RWA (real world assets) narrative emerges
Trustless financial services: swapping, lending, yield farming, stablecoins
💡 Did You Know
The term "DeFi" was coined in a Telegram chat in 2018. Within three years, it had grown into a $180B industry.
⚠ Controversies & Red Flags
DeFi protocols have lost billions to hacks and exploits. Smart contract vulnerabilities are a constant risk.