๐นWhat is DeFi?
welcome to the future of finance - shoutout VB
DeFi is a blanket term for all protocols accessible on the blockchain to anyone with an internet. It is an open and global financial system built for the internet age - an alternative to the traditional systems that are tightly controlled, slow to innovate, favour the powerful, and have been proven by countless financial crises to be inherently flawed. Decentralized Finance gives you control and visibility over your money. It gives you exposure to global markets and alternatives to your local currency or banking options. DeFi products open up financial services to anyone with an internet connection and they're largely owned and maintained by their users. With DeFi, the markets are always open and there are no centralized authorities who can block payments or deny you access to anything. Services that were previously slow and at risk of human error are automatic and safer now that they're handled by code that anyone can inspect and scrutinize.
There exists a whole world of financial possibilities on the blockchain, where you can lend, borrow, long/short, earn interest, and more. Crypto-savvy Argentinians have used DeFi to escape crippling inflation. Companies have started streaming their employees their wages in real time. Some people have even taken out and paid off loans worth millions of dollars without the need for any personal identification.
Check out the short Youtube video below for a more in-depth explanation on DeFi:
Time for a quick review! DeFi, or Decentralized Finance, is a financial system that's accessible to anyone with an internet connection anywhere on Earth, at any time and without any restriction. You can do nearly everything you can within traditional finance here in the DeFi world, and so much more!
Now that we know what DeFi is, let's explore one of the coolest things we can do with it: earn passive income through Yield Farming.
Last updated