What is DeFi: Simply definition of decentralized finance

What differentiates these DeFi D-apps from traditional banks?

  • At their core, the operations of these businesses are not managed by an institution and its employees — instead, the rules are written in code (or smart contract, as mentioned above).
  • The code is transparent on the blockchain for anyone to audit.
  • D-apps are designed to be global from day one.
  • “Permissionless” to create, “permissionless” to participate — anyone can create DeFi apps, and anyone can use them.
  • Flexible user experience.
  • Interoperable — new DeFi applications can be built or composed by combining other DeFi products like Lego pieces.

De-Fi key categories

1. Stablecoins. A building block of decentralized finance. Stablecoins are tokens designed to stay at a fixed value, even when the price of cryptos changes, and backed by a reserve asset.

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