Korbit Research Center Publishes "Redrawing the DeFi Map"

Korbit Research Center, under the virtual asset exchange Korbit, announced on July 24 that it has published a report titled "Redrawing the DeFi Map," which provides a comprehensive analysis of the structural changes and regulatory environment in the decentralized finance (DeFi) industry.

This report systematically organizes the concept and history of DeFi, as well as the structure of its main services. It offers an in-depth analysis of the technological frameworks and operational strategies of the three sectors: trading, lending, and asset management. In addition, it sheds light on how recent changes in the regulatory environment are affecting the overall DeFi ecosystem.

DeFi is an open financial ecosystem designed to allow users to participate directly in financial activities without intermediaries, utilizing blockchain-based technology. It is now functioning as a practical financial infrastructure rather than merely serving as a field for technological experimentation.

The report analyzes that the DeFi ecosystem is rapidly restructuring based on technological advancement, diversification of revenue models, and strategies to attract institutional investors. It particularly notes that in all three areas?trading, lending, and asset management?there is a marked trend toward expanding connections with traditional finance, such as linking with real-world assets and implementing KYC (Know Your Customer)-based features.

The report also states that, following the inauguration of the Trump administration, related regulations have been eased, thereby increasing opportunities for DeFi. As regulatory uncertainty decreases, the revenue redistribution mechanisms (Fee Switch) of major DeFi protocols are being discussed. This, in turn, is raising the possibility of institutional entry into DeFi.

Lee Sunyoung, a research fellow at Korbit Research Center, said, "As efforts to connect DeFi with traditional finance become more active, approaches to regulatory compliance and operational strategies are becoming more diversified. Now, DeFi is no longer finance outside the regulatory framework, but is becoming a testing ground for new financial infrastructure where its functions and responsibilities are being evaluated within the established system."