What is Defi ? Simple Guide in 2020

Posted by apollinejass on November 20th, 2020

DeFi is short for “decentralized finance,” used to build a secure finance system with blockchain technology. Decentralized financial moves to the next level, DeFi moves to decentralized applications so-called "DApps". 

The most popular types of DeFi applications are:

• Decentralized exchanges (DEXs): Online exchange platform where traders can buy or sell the cryptocurrency without the intermediary person or bank using defi it gives more benefit like secure transaction between the user.

• Stablecoins: A stablecoin is a cryptocurrency that offers price stability in the marketplace .  The new Crypto-collateralized Stablecoins comes with defi applications 

• Lending platforms: These platforms use special defi smart contracts to replace intermediaries such as banks that manage lending finance through middle men. 

• "Wrapped" bitcoins (WBTC):  It is a way to send bitcoin to the Defi Ethereum Blockchain network come  wbtc. It allows users to earn interest to lend the bitcoin in the network. 

• Prediction markets:  Prediction means always believed in futures. Current markets are betting the outcome of future events, such as elections. The goal of DeFi versions is predicting the result  without intermediaries.

In addition to these apps, new DeFi concepts also came 

Yield farming: For expert traders , who are willing to take on risk in the crypto world, there is yield farming, where users scan through various DeFi tokens in search of opportunities for larger returns.

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