In a globalized and hyperconnected world of nations and their economies, finance plays a keystone role in ensuring the gears of the world continue to turn.  Since the late 15th century – when credits and debits were first used as a method of account – finance has been stewarded by third party intermediaries.  Their operations include lending/financing, acting as a “market maker” (as within a stock exchange), or establishing standardized credit metrics to assess participant creditworthiness within their system.

However, this reliance on third parties is not always to the benefit of the participant.  Though the global financial system has lifted billions out of poverty and found a way to feed many more, there is a problem in placing trust in third parties to carry out these financial operations.  There are many examples of trust in financial institutions going awry for its participants.  To comprehend the scope of these failings, look no further than the 2008 bailouts, runaway inflation of the present day, or the undeniable effects of corporate irresponsibility on the ecological commons.

Despite laws in place attempting to limit fraudulent and harmful activity in the world of finance, money tends towards legal loopholes when profitable.  So what is to be done?  This is where deFi could come in handy.

Using a piece of code that lives on a blockchain called a “smart contract”, anyone can code functions that mimic what the financial services offered by today's banks, markets, and credit agencies.  Foremost, the benefit of these on-chain contracts is that they do not require the trust of a central third party, thus untethering financial operation from the will and whim of financial behemoths.  Beyond this, these technologies are being used to create financial inclusion like never seen before.

With an internet connection, a migrant worker from Brazil living in Japan can send money back home (called a “remittance”) and totally bypass the current financial standard for remittances (SWIFT) which takes days compared to seconds on chain, and totally bypassing the predatory cost of remitting through swift.  On top of this, it goes straight to their phone – no potential for crooked authorities and outright criminals to skim or rob the receiver of funds.

Another killer use case evolving in deFi is the open participation as a liquidity provider in an automated market maker (AMM) system like Uniswap, earning fees by arbitrating international transactions with your currency.  Providing Liquidity, instant lending, insurance options – these only cover the first 10 yards of the deFi rabbit hole, and WBC deFi wants to take you all the way to the bottom.  Over the coming months and years WBC deFi will educate and participate in the total reorganization of finance around on chain notions of property.  We’re beyond excited for what the future holds, join us, and share in that excitement, learning the schema and laying the bricks of this financial future.