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DeFi Crypto

by Hashogen | Oct 09, 2020

It is learnt that Decentralized Finance (DeFi) act as the movement that completely leverages decentralized networks to transform old financial products into trust less and transparent protocols that run without intermediaries.

Moreover one area in cryptocurrencies attracting huge attention is DeFi or decentralised finance. This primarily refers to financial services using smart contracts, which are automated enforceable agreements that don’t need intermediaries like a bank or lawyer and use online blockchain technology instead.

What is DeFi Crypto?
    
They are short form for “decentralized finance,” an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries. DeFi is distinct since it actually expands the use of blockchain from simple value transfer to more complex financial use cases.

Why is DeFi important?

DeFi offers everyone in the globe access to an essentially unlimited number of financial products and services. These golden opportunities, which range from simple savings products to complex trading platforms, are nearly frictionless, in the sense that they require very little infrastructure.

You can start making money on DeFi in 4 steps

  • Try to get ETH into an address that you own. As the saying goes, if you don't hold the private keys to the wallet, then they aren't your coins. 
  • Choose a lending protocol, and start earning interest

Other DeFi services now in use permit you to:

  • Borrow and lend cryptocurrencies to earn interest using platforms such as Compound or Aave.
  • You can bet on the outcome of events using Augur.
  • Create and exchange derivatives of real-world assets such as currencies or precious metals on Synthetix.
  • You can take part in a no-loss lottery on PoolTogether, where everyone gets their money back and one lucky participant wins all the interest that has accrued in a shared pot.
  • Best to buy cryptocurrencies known as stablecoins, which are pegged to the value of a particularly currency or commodity. 

Final Thoughts 

What is DeFi and why do we need it?

DeFi brings in decentralized exchanges to make sure that there no centralized point-of-failures within the ecosystem. Thus centralized organizations manage the majority of the cryptocurrencies.