How are DeFi currencies different from other cryptocurrencies?

Even though all cryptocurrencies are inherently decentralized, projects that leverage this technology are often the opposite. This includes various cryptocurrency exchanges, loan platforms, prediction markets, etc. Both options have their pros and cons:

CeFi pros: high flexibility and liquidity. More effective tech support. Professional asset custodianship. Rapid adaptation to client demands. Cross-chain swaps. No issues with exchanging BTC for XRP or LTC for ETH on a centralized exchange. Fiat support.

CeFi cons: all assets stored on the platform are outside of reach for the user and are thus vulnerable to threats capable of breaching the security system.

DeFi pros: user has full control and responsibility for his assets and sensitive information. No human factor — all transactions are carried out through automated smart contracts. Full access from anywhere with an Internet connection. Open source. Innovative.

DeFi cons: as a rule, it is tied to one blockchain (most often Ethereum). This negatively affects asset liquidity.

DeFi platforms and tokens are becoming more and more widespread and now cover almost all facets of financial activity where it was previously impossible to do business without the help of middlemen.