“DeFi” — You’ve heard the term, but what is it?
Decentralized Finance (DeFi) is a revolutionary concept that is changing the way we think about finance and investment. It is a new type of financial system that is built on top of blockchain technology, and allows for a decentralized and transparent way of managing and investing in financial assets, without the need for intermediaries. In this article, we will explore what DeFi is, how it works, and the benefits and risks associated with it.
What is DeFi?
DeFi, short for Decentralized Finance, refers to a new type of financial system that is built on top of blockchain technology. This new financial system allows for a decentralized and transparent way of managing and investing in financial assets, without the need for intermediaries. The main goal of DeFi is to create a more inclusive and accessible financial system, where anyone can participate regardless of their location or net worth.
Examples of DeFi platforms include decentralized exchanges (DEXs), lending and borrowing platforms, and stablecoins. These platforms allow for the trading, lending, and borrowing of various types of assets, such as cryptocurrencies, without the need for intermediaries.
