DeFi (decentralized finance) continues to evolve rapidly in 2025, redefining the rules of financial engagement. Here is an overview of DeFi today, its strengths, challenges, and prospects:

1. What is DeFi today?

DeFi represents a set of open-source financial protocols operating without intermediaries (banks, brokers), typically on the Ethereum or Solana blockchain. It allows anyone with a crypto wallet to access financial services such as:

Lending/Borrowing (e.g., Aave, Compound)

Asset exchange (e.g., Uniswap, Curve)

Staking and yields (e.g., Lido, Pendle)

Decentralized insurance

Synthetic assets (e.g., Synthetix)

2. Key advantages

Global accessibility: no need for a bank account.

Transparency: all contracts are public and audited.

Rapid innovation: constant emergence of new services (such as programmable finance via smart contracts).

Interoperability: dApps can "compose," it is the LEGO effect of DeFi.

3. Major trends in 2025

a. Real World Assets (RWA)

Platforms like MakerDAO and Maple Finance tokenize government bonds, real estate, or invoices.

This creates bridges between DeFi and traditional finance.

b. Institutional DeFi

Banks like JPMorgan or BlackRock are experimenting with DeFi on private blockchains.

KYC/AML (user identity) is becoming common on some hybrid dApps.

c. DeFi and AI

Smart contracts are automated by intelligent agents that rebalance portfolios, adjust rates, or arbitrate.

4. Challenges to overcome

a. Regulation

The European Union (MiCA) imposes safeguards.

In the USA, DeFi faces uncertainties (the SEC targets certain protocols).

b. Technical risks

Bugs in smart contracts.

Hacks (several hundred million stolen in 2024).

c. Difficult UX

For the general public, DeFi remains complex: wallet management, gas fees, non-intuitive interfaces.