Decentralized Finance (DeFi)

Decentralised finance is an umbrella term for blockchain-based financial applications and services platform where users can access funding without going through the traditional means of funding provided by regulated entities such as banks, investment firms and finance companies.

How does DeFi work?

Users in DeFi use dApps (decentralised Apps) to transact. Most DeFi run on the Ethereum blockchain. The user needs to create a compatible digital wallet to gain full access to the DeFi platform.

What is offered in DeFi?

The appeal of the DeFi ecosystem lies in the various non-custodial financial products and services available, especially lending and borrowing protocols. Usually, no limits are placed on borrowing and the transaction is immediate.

For example, Aave, Maker and Compound are popular projects that offer cryptocurrency lending.

DEX such as Uniswap and SushiSwap offer crypto borrowing facilities.

DeFi platforms also allow for trading in synthetic assets, such as Synthetix’s tokenised stocks where traders capitalise on the exposure to assets. As a derivatives liquidity protocol, it mirrors the traditional securities industry but without its restrictions and limitations.

Bespoke
legal solutions
for DeFi matters

  • 1

    Singapore company incorporation

  • 2

    Nominee director services in Singapore

  • 3

    Corporate bank account opening assistance with DeFi/Crypto friendly banks

  • 4

    Legal opinions on DeFi and related matters

  • 5

    Creating of a token to access a DeFi protocol

  • 6

    DeFi token terms and conditions

  • 7

    DeFi/Token Generation Event (TGE) support

  • 8

    Legal and Regulatory structuring

  • 9

    Compliance and Best practices framework advisory and setup