Short for decentralized finance. DeFi is financial software built on a blockchain that is decentralized at its core.
Example Sentence : DeFi allows everyone to take charge of their financial well-being
by coino 2020-12-10 12:45:17

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What are some examples of popular DeFi applications?

Arguably, the most popular and fasting growing sector of DeFi is borrowing and lending platforms. Similar to a bank, users deposit money and earn interest from other users borrowing their assets. However, in this case the assets are digital and smart contracts connect the lenders to borrowers, enforce the terms of the loans, and distribute the interest. And it all happens without the need to trust one another or middleman bank. And, by cutting out the middleman, lenders can earn higher returns and more clearly understand the risks thanks to the transparency blockchain provides.

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