05/03/2023
Today let's discuss DeFi.
DeFi stands for decentralized finance which is a term for products and services built as open-source financial software on top of blockchain technology that can be pieced together.
Technologies like cryptography, blockchain and smart contracts allowed people to build and control a financial system for the users, by the users.
DeFi works without any intermediaries, it's just code. It's not run by an entity so anyone can have access to DeFi services.
Most popular use cases:
⚡️The most popular use for DeFi is lending and borrowing crypto.
Lending is a popular way to earn passive income in DeFi. Most loans made in DeFi are secured via smart contracts which reduces the risk for lenders.
⚡️DEXes
Decentralized exchanges are smart contracts that allow users to buy, sell or trade crypto.
These exchanges operate without a central authority. Instead, the smart contracts enforce the rules, execute trades, and securely handle funds when necessary.
