Introduction

For a long time, the systems that are the helms of finance have always been centralized. Within the scope of the paper, centralization suggests the concentration of institutional decision-making power in the hands of a few people at the top.

The centralization conundrum has two sides to it.

First, the government forms the most visible side of centralization. Most times, they determine monetary and fiscal policies, some of which might not always favor the common or marginalized people in society.

Second, big financial companies also control people’s finances, whether directly or not. Some big centralized financial companies often manipulate people’s data or clearly show them they are not in the actual custody of their funds.

There have been several issues of people complaining about how companies like PayPal and Stripe allegedly withhold their funds.

Beyond these issues, the issue of accessibility is hitting the global financial landscape at its grassroots. Zooming out of the Western world, where most banks are based, data proves inaccessibility to personal banking infrastructure in some banks of the world.

Centralized banking or financial systems have obviously failed the elites and the marginalized demography. Undoubtedly, traditional banks or governments are never a panacea to the financial problems of the globe. There has to be a solution.

There has to be a way financial power can be taken from the governments and big companies and given back to the hands of the people. It is fair that everyone should be in control of their funds, and make their financial decisions by themselves without any undue external interference.

After years of research across finance, governance, and tech, the idea of Decentralized Finance was borne. Decentralized Finance, which we shall subsequently call DeFi in the rest of this paper, is a system without any concentrated entity or government in its control.

DeFi has been the age-long dream of man to achieve systemic financial freedom and stability. With the advent of DeFi, the proposed dream of centralized finance—which is financial inclusion and security—is finally met.

Now, anyone can access financial services regardless of where they are in the world, their race, and what they believe in. Unlike the current biased financial system, DeFi respects and gives a welcoming hand to everyone equally without any form of prejudice.

According to statistics, only about 1,000 people adopted DeFi around 2017. The number has spiked up to over 6 million in 2023. This radical jump in adoption is not surprising as it further stamps the fact that technology is solving a significant problem in the history of humanity.

That said, a giant company is on track to redefining DeFi, making it accessible and user-friendly to everyone worldwide. This company is known as The Lovely Finance Incorporation, which we can refer to as The Company subsequently in this paper.