There has been a steep rise in disruptive cryptocurrency innovation over the past couple of years that has fast-changed the digital currency landscape. Today, one of the fastest emerging areas of the cryptoverse is decentralised finance, or DeFi.
It is the hottest and most impactful crypto trend that is upending the traditional financial system with the promise of a borderless, friction-free, decentralised, cheaper and faster alternative.
For the uninitiated, DeFi comprises a network of applications devised to replicate conventional financial products with cryptocurrency.
It works within a peer-to-peer ecosystem that does away with intermediaries needed to make decisions or approve transactions in the traditional financial system.
“DeFi is financial services, controlled not by humans or some entity, but by public smart contracts available on the blockchain,” says Viktor Prokopenya, a technology entrepreneur and founder of Capital.com and Currency.com.
“The functioning of the service is published on the public ledger, so that anyone can view them.”
This is typically why people say there is no legal entity behind DeFi, giving us the concept of entity-less financial services.
The DeFi market is booming as more enthusiasts, app developers and opportunistic cryptocurrency investors are drawn to it.
As of October 5, there is $55 billion worth of funds in DeFi-related contracts, a big jump from $15bn in 2020, yet significantly below its $180bn peak in November 2021, according to DeFi Llama.
While this year's relentless cryptocurrency volatility may have slowed things down, experts say it is still early days for DeFi.
At its current growth rate, it is destined to become a major element of the digital economy as the world continues its pivot towards DeFi.
Investors looking to ride the latest cryptocurrency wave may want to dig into this handy guide to DeFi.
The inner workings of DeFi
Much of what DeFi applications do is underpinned by blockchain-based smart contracts that are used to design financial products that people can use without needing intermediaries such as banks or brokers.
Ethereum is the world's first and most widely used smart contract platform. Developers can build financial applications on top of these blockchains.
“A smart contract is simply the programme behind the token and its code is published publicly on the blockchain,” says Mr Prokopenya. “They are considered a fundamental building block for DeFi.”
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These applications function autonomously and have a smooth interface with each other.
This gave rise to a DeFi ecosystem that allowed developers to create efficient, faster and highly profitable businesses, including exchanges, banks, insurance markets, derivatives markets, art markets, and robo-advisers, all working seamlessly and without human interaction.
“Ways DeFi is being used include through Decentralised Exchanges [DEXes], where the participants can exchange one token to another token,” says Mr Prokopenya.
DeFi apps are also attracting yield-seeking investors who can lock capital in smart contracts in exchange for returns of 15 per cent to 30 per cent.
DeFi: CeFi without the middleman
DeFi allows financial activities without an intermediary, effectively allowing you to be your own bank. Investors can use a DeFi platforms to earn yields, much in the same way as they do with their savings account — but without a financial institution involved.
This process is called staking, where “you lock crypto assets for a set period of time to help support the operation of a blockchain”, says Mr Prokopenya. “In return for staking your crypto, you earn more cryptocurrency.”
Just as banks do with fiat currency in centralised finance (CeFi), DeFi lending allows users to loan out cryptocurrency and earn interest as a lender.
It is similar to holding funds in a savings account and earning interest over time.
Viktor Prokopenya,
technology entrepreneur and founder of Capital.com and Crrency.com
“It is similar to holding funds in a savings account and earning interest over time,” Mr Prokopenya says. “That money is then lent out to other users or sent out to market makers, providing the investor with passive income.”
While interest rates fluctuate in both the CeFi and DeFi domains, the latter doesn’t require borrowers to pledge hard assets as collateral. Instead, DeFi borrowers provide crypto assets in a process that is entirely anonymous and without human intervention.
The reason DeFi generates higher benefits for users is that there are no bank branches, employees or other operational costs that CeFi must contend with.
The divergence between the two systems becomes more significant in the event of a loan default. Unlike in the conventional financial system, DeFi borrowers don’t repay with physical assets in the situation of a potential debt default.
Debt defaults are simply not allowed in DeFi.
When the price of cryptocurrency used as collateral falls dramatically, a preventive measure is activated. Cryptocurrency held as collateral is then liquidated to recoup the loan before the value of collateral falls below the loan value.
Bear in mind, though, that DeFi also possesses risks inherent with cryptocurrencies, including the prospect of intense regulatory scrutiny, extreme price volatility and the technology itself.
There is no provision or mechanism in DeFi for recovering assets lost due to technological or human error.
How to get in the DeFi game
Billions of dollars worth of cryptocurrency is locked into the DeFi ecosystem as funds continue to pour in. So, how do you plug into the DeFi bonanza?
DeFi is built with smart contracts that run on the Ethereum blockchain.
Thus, the simplest way to invest in it is to own Ether, or ETH, Ethereum’s native coin.
There are other DeFi-powered coins — such as Cardano (ADA), Chainlink (CHAIN), Aave (AAVE), Uniswap (UNI) and the Curve DAO Token (CURVE), among others — that can tie your portfolio to the fortunes of DeFi technology.
Not only do these coins offer exposure to various segments of the DeFi industry, but each token is also a ticket to ride the growth of their respective DeFi protocols.
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Crypto Arabs project — in pictures
For example, if you invest in Ether, and the Ethereum protocol grows and attracts more users, it will boost demand for Ether, thus appreciating its price and the value of your investment.
Another way to play the DeFi field is yield farming, regarded as the most disruptive part of DeFi. It is a process of generating passive income by lending and borrowing on crypto lending platforms.
“You lend your money temporarily and because the business entity’s goal is to make a profit, you take a share in profit, earning passive income,” says Mr Prokopenya.
In addition to yield, some protocols offer an additional reward, in the form of a new token called the liquidity provider (LP) token, which the owner can hold, use on DeFi apps or sell for cash.
“The easiest way to begin is through staking and other passive income options,” says Mr Prokopenya, adding that it is a great way to “familiarise yourself with smart contracts, wallets and tokens with less risk”.
The road ahead
The continued convergence of blockchain technology and financial applications is expected to continue to expand the DeFi ecosystem. Supporters of DeFi say it is a more efficient alternative to the current CeFi system.
However, there may be some speed bumps along the way.
“This is new technology, so regulation is coming,” warns Mr Prokopenya. “It will also be brought into the sphere of tax regimes and there is now international consensus on this.”
All virtual asset providers will have to report transactions to tax authorities, which is a very significant move, he says.
Investors need to watch out for various cryptocurrency fraud schemes.
“The rule here is double check, triple check — be suspicious,” he says.
Fraudsters tend to exploit some technical risks inherent to the emerging DeFi system.
Yet, there is much for cryptocurrency investors to look forward to as the burgeoning DeFi economy opens doors to unique opportunities in 2022 and beyond.
It is a whole new way to gain access to the cryptocurrency market for both devout investors and those simply dabbling in it.
But be sure to research your investment thoroughly, do your due diligence and only invest what you can afford to lose.
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Need to know
The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours.
The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.
When to go: You can climb Kili at any time of year, but the best months to ascend are January-February and September-October. Also good are July and August, if you’re tolerant of the colder weather that winter brings.
Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.
Indika
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
MATCH INFO
Bayern Munich 2 Borussia Monchengladbach 1
Bayern: Zirkzee (26'), Goretzka (86')
Gladbach: Pavard (37' og)
Man of the Match: Breel Embolo (Borussia Monchengladbach)
ESSENTIALS
The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Results
1. Lewis Hamilton (Mercedes) 1hr 32mins 03.897sec
2. Max Verstappen (Red Bull-Honda) at 0.745s
3. Valtteri Bottas (Mercedes) 37.383s
4. Lando Norris (McLaren) 46.466s
5.Sergio Perez (Red Bull-Honda) 52.047s
6. Charles Leclerc (Ferrari) 59.090s
7. Daniel Ricciardo (McLaren) 1:06.004
8. Carlos Sainz Jr (Ferrari) 1:07.100
9. Yuki Tsunoda (AlphaTauri-Honda) 1:25.692
10. Lance Stroll (Aston Martin-Mercedes) 1:26.713,
WHAT%20MACRO%20FACTORS%20ARE%20IMPACTING%20META%20TECH%20MARKETS%3F
%3Cp%3E%E2%80%A2%20Looming%20global%20slowdown%20and%20recession%20in%20key%20economies%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Russia-Ukraine%20war%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Interest%20rate%20hikes%20and%20the%20rising%20cost%20of%20debt%20servicing%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Oil%20price%20volatility%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Persisting%20inflationary%20pressures%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Exchange%20rate%20fluctuations%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Shortage%20of%20labour%2Fskills%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20A%20resurgence%20of%20Covid%3F%3C%2Fp%3E%0A
The specs
Engine: 6.2-litre V8
Transmission: seven-speed auto
Power: 420 bhp
Torque: 624Nm
Price: from Dh293,200
On sale: now
Recipe: Spirulina Coconut Brothie
Ingredients
1 tbsp Spirulina powder
1 banana
1 cup unsweetened coconut milk (full fat preferable)
1 tbsp fresh turmeric or turmeric powder
½ cup fresh spinach leaves
½ cup vegan broth
2 crushed ice cubes (optional)
Method
Blend all the ingredients together on high in a high-speed blender until smooth and creamy.
Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours.
The package
Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
Greatest Royal Rumble results
John Cena pinned Triple H in a singles match
Cedric Alexander retained the WWE Cruiserweight title against Kalisto
Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus
Jeff Hardy retained the United States title against Jinder Mahal
Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos
Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe
AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out
The Undertaker beats Rusev in a casket match
Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match
Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last
Common OCD symptoms and how they manifest
Checking: the obsession or thoughts focus on some harm coming from things not being as they should, which usually centre around the theme of safety. For example, the obsession is “the building will burn down”, therefore the compulsion is checking that the oven is switched off.
Contamination: the obsession is focused on the presence of germs, dirt or harmful bacteria and how this will impact the person and/or their loved ones. For example, the obsession is “the floor is dirty; me and my family will get sick and die”, the compulsion is repetitive cleaning.
Orderliness: the obsession is a fear of sitting with uncomfortable feelings, or to prevent harm coming to oneself or others. Objectively there appears to be no logical link between the obsession and compulsion. For example,” I won’t feel right if the jars aren’t lined up” or “harm will come to my family if I don’t line up all the jars”, so the compulsion is therefore lining up the jars.
Intrusive thoughts: the intrusive thought is usually highly distressing and repetitive. Common examples may include thoughts of perpetrating violence towards others, harming others, or questions over one’s character or deeds, usually in conflict with the person’s true values. An example would be: “I think I might hurt my family”, which in turn leads to the compulsion of avoiding social gatherings.
Hoarding: the intrusive thought is the overvaluing of objects or possessions, while the compulsion is stashing or hoarding these items and refusing to let them go. For example, “this newspaper may come in useful one day”, therefore, the compulsion is hoarding newspapers instead of discarding them the next day.
Source: Dr Robert Chandler, clinical psychologist at Lighthouse Arabia
Dubai World Cup draw
1. Gunnevera
2. Capezzano
3. North America
4. Audible
5. Seeking The Soul
6. Pavel
7. Gronkowski
8. Axelrod
9. New Trails
10. Yoshida
11. K T Brave
12. Thunder Snow
13. Dolkong
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Zayed Sustainability Prize
