Decentralized Finance– A Policy Perspective

As a relatively new concept, DeFi ‘is not widely understood by many market participants and policymakers.’ 4 The underlying technical complexity may be particularly challenging for unsophisticated investors and is likely to obscure the relevant risks.

However, DeFi’s distinguishing characteristics relate not so much to the nature of the products and services classified as ‘DeFi’, but rather to the new ways of delivery of those products and services.5

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