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What is Defi?

Defi is short for Decentralized Finance.

Imagine that you want to send your friend Zaura money, but she lives in another country from you. Defi lets you do this effortlessly.

What is DEFI?

Decentralized finance is a new financial rail. So imagine financial applications like (cash app and Venmo), but instead, no intermediary is controlling your money. Complex algorithms are now doing the work!

So what does this mean?

Anyone can use these new sets of financial applications and access tools that were once unavailable to all, whether that’s sending money to a friend globally, trading a stock 24/7 in the form of a token, gaining high interest through lending cryptocurrencies, and much more. Defi has finally lowered the barrier to entry for achieving financial wellness and equity.

These applications use smart contracts-

Smart contracts are just like your favorite vending machine. Rather than having an intermediary facilitating this transaction, you can instead insert your coins and facilitate transactions when you want in an automated manner.

The easiest way to think about this is you currently give your money to a bank or financial institution. The processes can be time-consuming, unfair, tedious, and harmful. Now imagine if you could do what you do at a bank, but without dealing with the negatives (For more read, What is crypto, simplified?). This is the central premise, true financial freedom!

What does Defi do?

Defi can essentially do everything your traditional financial institution can do but is more accessible, simpler, faster, and better.

Defi is:

- Open



The main premise:

They are financial applications built on the blockchain. The blockchain is the technology that runs your favorite cryptocurrency, Bitcoin, and the do-it-yourself platform for decentralized finance applications is Ethereum.

If you want to create your own, you don’t need to ask anyone for permission.

Anyone with the goodwill and drive can participate in the global economy and unlock new financial opportunities for everyone.


Disintermediation is disrupting something in a way that makes it irrelevant.

Without disintermediation, you would need to destroy the existing infrastructure. Disintermediation is the byproduct of competition.

Cryptocurrency is like a new organism that is entering the financial ecosystem.

Crypto is a tool that gives people an environmental advantage which is why it’s so compelling to users. If you don’t use it, you will get disintermediated- conformity.

Defi ultimately gives civilians freedom!

Defi Efficiency = Freedom

What does Defi Change?

Crypto is an entirely opt-in system.

We were born into USD, or your native currency we didn’t get to choose. Competition is good for the end consumer.

If you are born into USD, you are subject to the rules and regulations of USD without any choice, but crypto changes this.

Our current systems have created the largest economies our world has ever seen, especially in the US and China.

Our system is relatively inefficient, and it is evident because of the millions of people who die from starvation, feel uncertain about the economy, and struggle to meet their nutritional needs. Something that you have to work harder against is efficiency.

The Inefficiencies create opportunities for rent-seeking intermediaries to extract value from the economy.

Commercial banking controls our civilization- this is not healthy.

What Should We Do?

We shouldn’t allow bankers to control the flow of the economy.

We should have a more diversified economic ecosystem where banks are a part of it, but they shouldn’t have totalitarian control over our lives.

Government agencies can see everything we do, but their information is secret.

Everything should be transparent- government should be serving the people, not our rulers.

We have privacy rights, as stated in the constitution.

We need to move aside and build new systems. The current system is a surveillance network to spy on us. Banks currently can turn off bank accounts and determine who they send money to, which is a critical component of their life.

They can access food, housing, whether you see your friends, redlining- denied housing to whole areas- should all be prevented.

We can create utterly infallible trust systems, and the info you put into them is as well.

This is the power of Defi!



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Kristian Lamarre

Kristian Lamarre

Co-founder @Sencha | Defi Enthusiast | Podcast Lover | Photographer | Adventurer