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What is DiFi?

DeFi is a decentralized crypto market that deals with all kinds of financial services including lending and insurance. The market is still in its infancy, and is considered what finance might look like if blockhain technology improves and evolves.  DeFi all the control  back to the individual and takes it away from large centralized organizations such as banks, insurance companies, central banks, and other financial institutions. This means that  DeFi platforms give users the power to provide anyone in the world with a wide range of financial services like loans and mortgages.

On 7th August there were fresh  concerns that  San Francisco-based lending platform Dharma  stopped all new deposits and loans  following a period of sustained outflows. Further to this, the amount of Ethereum (ETH) locked in MakerDAO has hit its lowest levels since November last year. The makers users recently approved increasing the stability fee to 19.5% after issues  maintaining its stablecoin DAI’s USD 1 peg. It was reported by The Block that in December 2018, more than 91% of the total value in DeFi was locked in Maker but its dominance has since fallen by more than 20% so it seems there are some though times ahead for the project.


“For now, we’re pausing new deposits and loans in Dharma. If you have an existing deposit or loan with Dharma, you’ll still be able to access your account and will have the option to withdraw any funds that are not currently locked up.”