DeFi (pronounced dee-fy) is short for decentralized finance. It’s an emerging field that lets participants cut out the middleman and make financial transactions directly with... moreDeFi (pronounced dee-fy) is short for decentralized finance. It’s an emerging field that lets participants cut out the middleman and make financial transactions directly with others, and it’s quickly gaining in popularity as an alternative to traditional financial services.
What is DeFi?
DeFi refers to decentralized financial services on blockchains as opposed to “centralized” financial services provided through banks or other traditional financial institutions. It lets participants use cryptocurrency to provide most services that traditional banks offer with government-issued fiat currencies,lend, borrow, earn interest, trade assets, buy insurance, and more.
DeFi services tend to be faster, cheaper, and simpler, with new advantages and services being offered each day.
DeFi vs. Centralized finance
Centralized finance is the default financial environment in which the world currently operates, with payments, loans, and trading activity passing through third parties and middlemen... less