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Home Tech Crypto ‘DeFi may lead to a paradigm shift’ says Federal Reserve Bank paper

‘DeFi may lead to a paradigm shift’ says Federal Reserve Bank paper

Document Analysis NLP IA

392
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1:57
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positive
sentiment

Sentiment0.1245306122449
subjective
redaction

Subjectivity0.52730612244898
probably it's an affirmation
Affirmation0.29237288135593

Highlights

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Key Concepts (and relevance score)

Summary (IA Generated)

A paper published by the Federal Reserve Bank of St Louis has delved into the expansion of decentralized finance and Ethereum’s role in it.

DeFi uses smart contracts to create protocols that replicate existing financial services in a more open, interoperable, and transparent way,’ Dr.

Schär explained that the backbone of the entire DeFi ecosystem is smart contracts, the majority of which run on Ethereum.

5 million ETH, or 9% of the entire supply, is locked up according to Defipulse.

“The spectacular growth of these assets alongside some truly innovative protocols suggests that DeFi may become relevant in a much broader context and has sparked interest among policymakers, researchers, and financial institutions.

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According to the ConsenSys Q1 DeFi report, the number of Ethereum addresses interacting with DeFi protocols is at an all-time high of 1.

The research adds to the bullish momentum for Ethereum which has seen it outperform Bitcoin this year and propel the asset to an all-time high of just over ,500 on May 4.


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