We’re very excited about our investments in DeFi projects, which range from projects like MakerDao, which has the largest TVL in the market now, to Libra-competitor Celo, to Synthetix, which specializes in minting and creating synthetic assets, to ones that DeFi apps are being built on like Dfinity and Polkadot. While DeFi is still early, with major hurdles to overcome including transaction speed and UX, BitBull’s hope is that our investments in the DeFi space will appreciate greatly.

The global financial industry is striking a balance between environmental adaptation, regulation, and profit in order to ensure the investor’s long-term stability and interest across the globe. It is set to grow from $20,490.46 billion in 2020 to $22,515.17 billion in 2021 at a compound annual growth rate (CAGR) of 9.9% and further reaching $28,529.29 billion in 2025 at a CAGR of 6%.

In addition, Decentralised Finance known as DeFi has emerged as an alternative financial system, to make it completely decentralized and automated with a minimum fee. It also eliminates the counterparty risks involved in financial transactions.

How DeFi is taking over the legacy financial infrastructure? Moreover, how is this field witnessing a notable surge? To answer all these questions we need to understand the mechanism behind this new age financial concept. There are plenty of DeFi applications, which are offering lending/borrowing services, exchanging services, monetary banking services as well as other financial instruments. The great potential behind this plethora of services and its disruptive potential along with has brought DeFi into the spotlight of the blockchain and fintech communities.

With more than $100 billion total market capitalization and a million cumulative users, DeFi is setting up new benchmarks for investors, policy makers and market leaders.

Andreesen Horowitz, one of the most renowned and prestigious venture capital funds in the world, just recently launched a second $515 Million crypto fund to invest in crypto networks and businesses, highlighting DeFi as one focus area. “With programmable trust, scarcity, and value as new building blocks, DeFi opens the components of finance to the same recombination and experimentation that makes open source software so powerful”.

Automatic execution of smart contracts through the code, based on its backbone technology (blockchain/ethereum), increases the usability of DeFi. The primary benefit of these applications is their permissionlessness and censorship-resistance. Anyone can use them, and no single body controls them.

The DeFi ecosystem is evolving at a much faster pace. The recent hype is backed by a new addition in this ecosystem, known as Yield Farming or Liquidity Mining. This method is being utilised to reward users for provisioning liquidity in the distributed apps system. Borrowing cryptocurrency and paying interest against it, similar to bank loans, is a new trend in the DeFi ecosystem. Unsecured loans blended with Crypto KYC is the future of DeFi.

Defi services and apps are mostly built on public blockchains, supported by decentralised web applications. The DFINITY Internet Computer is designed to accommodate decentralized finance (DeFi) platforms, enterprise IT systems, and websites among other use cases. The total value locked in DeFi contracts is more than $41 billion, as of March 2021.
In comparison with Bitcoin, it might be said that if Bitcoin is a modern, digital and decentralized alternative for transacting and storing value, DeFi is a modern, digital and decentralized alternative financial system as a whole. DeFi is yet to gain the trust of people around the financial industry but its recent hype and value additions made in the ecosystem has given a prognostication of its bright future.

BitBull Capital can help

At BitBull Capital, we specialize in diversified, active management, as represented by our crypto hedge fund. Some of our funds’ key investments include Coinbase, Tezos, Cosmos, Polkadot, Filecoin, dfinity, Near Token, Avalanche, Synethix, Mythical Games, and more.

In order to get started, click here to schedule a free call and let us walk you through potential crypto investment strategies that suit your portfolio and risk appetite.


As of the publication date of this report, BitBull Capital Management LLC and its affiliates (collectively “BitBull”), others that contributed research to this report and others that we have shared our research with (collectively, the “Investors”) may have long or short positions in and may own options on the token of the project covered herein and stand to realize gains in the event that the price of the token increases or decreases. Following publication of the report, the Investors may transact in the tokens of the project covered herein. All content in this report represent the opinions of BitBull. BitBull has obtained all information herein from sources they believe to be accurate and reliable. However, such information is presented “as is,” without warranty of any kind – whether express or implied.

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