Reckless – Chapter 13: DeFi

Lack of liquidity – Liquidity on the DEX was low and there was little incentive to be a market maker. In 2021, total DeFi trading volume represented around 8% to 9% of the spot volume on centralised cryptocurrency exchanges. DeFi trading volume had proved more robust than the centralised competition, quite a success story. At the time, many considered Anchor as the largest DeFi protocol in the world, with the amount deposited exceeding any other DeFi project on Ethereum. As a platform for this kind of trading, DeFi is successful and some of the larger, more established and stronger DeFi platforms, like Uniswap and AAVE are reasonably robust.