What is DeFi? (in 60 seconds)

DeFi is an acronym for Decentralized Finance. Decentralized Finance is the combination of financial digital assets, smart contracts (code based contracts), protocols (rules governing code), and Dapps (decentralized apps) that operate to provide financial services. The technology enabling DeFi can be seen as building blocks that can be rearranged and configured to serve different purposes.

Compound.finance is a popular interest generating DeFi protocol built on the Ethereum ecosystem that allows users to securely lend and borrow with one another without a centralized party (bank, lending tree) facilitating the transactions. Other blockchain based companies have taken the compound.finance protocol and made apps and integrations with it.

Compound.finance DeFi lending platform