What is DeFi?
Decentralized Finance; a system of financial services built on blockchain technologies.
Key details
- Permissionless
- Anyone can access DeFi services without needing approval from a centralized authority.
- Transparent
- All transactions and smart contracts are visible on the blockchain.
- Interoperable
- Different DeFi protocols can often work together seamlessly.
- Non-custodial
- Users maintain control of their assets rather than trusting them to a third party.
- Programmable
- Smart contracts automate financial services and create new possibilities.
Examples
- 01Decentralized exchanges (DEXs) like Uniswap for trading cryptocurrencies.
- 02Lending and borrowing platforms like Aave or Compound.
- 03Stablecoins pegged to the value of fiat currencies, like DAI.