Ark Invest's founder, CIO and CEO, Cathie Wood, shared her thoughts on the decentralized finance (DeFi) ecosystem. Cathie Wood also used remarkable statements about the concept of Metaverse.

Ark Invest's CEO, Cathie Wood, shared her ideas about the decentralized finance (DeFi) ecosystem in her Youtube broadcast with Miami University Herbert Business School dean John Quelch. Cathie Wood talked about three basic ideas in the 2022 edition of Ark Invest's annual research report “Big Ideas” on a question asked about the development of the crypto money market in her Youtube broadcast: monetary revolution (cryptocurrencies), financial revolution (DeFi) and the internet revolution (Metaverse).

Ark Invest CEO Wood

Adding that the decentralized finance ecosystem also has certain problems, Cathie Wood said that despite some problems, DeFi has become a larger ecosystem in the process. In addition, the CEO of Ark Invest pointed out the use cases in decentralized finance applications, claiming that it poses a potential risk to many traditional financial institutions.

Decentralized finance has become a very popular concept in the crypto ecosystem, especially since 2017. DeFi protocols, most of which were developed on the Ethereum blockchain, have reached a very large user base over the years. In this process, while the local cryptocurrencies of many popular DeFi protocols exhibited high price performances, the DeFi ecosystem also recorded very high increases in TVL (Total Value Locked).

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For What Purpose Did DeFi Emerge?

DeFi was launched to build a more democratic financial system after cryptocurrencies emerged for the purpose of freedom. Another most important purpose of DeFi systems is to enable people who do not have access to traditional financial systems to do their financial work.

About 1.7 billion people around the world do not have access to the traditional financial system, namely banking transactions. DeFi systems aim to reach these people, whom the current financial system cannot reach. Although there are physical barriers to accessing banking systems, people's distrust of the central banks is important.