Blockchain‐powered DeFi
Ratnayeke Shyamala, D. Prabakaran, C. DHAYA, S. Chaarumathi, Uma PERUMAL, V Senthil Kumaran · 2025
This chapter describes how decentralized finance (DeFi) protocols, liquidity pools and decentralized autonomous organizations can revolutionize water project finance by capital universalization, middleman elimination, and traceable and instant transactions. Green finance emphasizes investment that directs long-term environmental, social and governance (ESG) objectives. Water infrastructure is one of the primary drivers of green growth, and blockchain-based DeFi applications improve ESG. Traditional models of water infrastructure investment finance have been marred by numerous obstacles that limit their efficiency, coverage and scalability. There are several DeFi models in existence today,each trying to solve various needs of finance, from lending and borrowing to decentralized exchange, stablecoins and yield farming. Water infrastructure schemes such as building sustainable water supply systems, desalination plants, irrigation systems and wastewater treatment plants are costly and require massive capital investment. DeFi allows water infrastructure projects to be tokenized and investors to invest in fractionality.