What is DeFi?
DeFi is short for Decentralized Finance. As the name implies, it’s a way to transact without the use or permission of a centralized entity. Examples of centralized entities include Banks, Governments and Centralized Exchanges. I’m not going to bore you with how it works but if you’re interested the exact definition is after this article.
However, to me DeFi means freedom. I become my own bank, provide liquidity to the market to collect trading fees, I lend crypto and borrow against my own portfolio instead of selling. I will show you step by step exactly how to perform these actions.
As you go through these guides, I will show you what I have learned so you can make your own decisions. If you’re a newbie to crypto I highly suggest going through all the beginner articles in order. Especially the security and scams articles.
Traditional DeFi Definition
Decentralized Finance (DeFi) is a rapidly growing ecosystem of financial applications and services built on blockchain technology. DeFi aims to create an open, transparent, and accessible financial system that operates without the need for traditional intermediaries like banks or brokerages.
By leveraging smart contracts and decentralized protocols, DeFi enables a wide range of financial activities, including lending, borrowing, trading, and asset management, all of which can be accessed and utilized by anyone with an internet connection.