Decentralized Finance (DeFi) on Blockchain: Current Landscape and Future Trends

Abstract

Decentralized Finance (DeFi) represents a paradigm shift in the traditional financial landscape, leveraging blockchain technology to provide financial services without intermediaries. This paper presents an overview of the current landscape of DeFi applications built on blockchain platforms, highlighting their key features, benefits, and challenges. This paper analyzes the current landscape and future trends of DeFi on blockchain. It examines various DeFi protocols, including decentralized exchanges (DEXs), lending and borrowing platforms, liquidity pools, and synthetic asset platforms. Additionally, it discusses the growth and adoption of DeFi, evidenced by the increase in total value locked (TVL) and user participation across different protocols. Regulatory challenges and security considerations are explored, emphasizing the need for regulatory clarity and robust security measures. Finally, future trends such as scalability solutions, interoperability, and decentralized governance mechanisms are analyzed.