According to the Harvard Law School Forum on Corporate Governance, DeFi provides a solution to five key problems. These are “centralized control, limited access, inefficiency, lack of interoperability, and opacity.” To address these problems, “DeFi seeks to build and combine open-source financial building blocks into sophisticated products with minimized friction and maximized value to users.”
That maximized value will translate into a wide range of new financial products that aren’t restrained by high fees and other points of friction. These products go far beyond cryptocurrency trading. DeFi customers will be able to acquire loans, invest in interest-bearing accounts, and conduct much cheaper and faster financial transactions without any paperwork or minimum transaction requirements.