Description

DeFi takes the basic premise of Bitcoin — digital money — and expands on it, creating an entire digital alternative to Wall Street, but without all the associated costs (think office towers, trading floors, banker salaries). This has the potential to create more open, free, and fair financial markets that are accessible to anyone with an internet connection.

Key Features

• Open: You don’t need to apply for anything or “open” an account. You just get access by creating a wallet.
• Pseudonymous: You don’t need to provide your name, email address, or any personal information.
• Flexible: You can move your assets anywhere at any time, without asking for permission, waiting for long transfers to finish, and paying expensive fees.
• Fast: Interest Rates and rewards often update rapidly (as quickly as every 15 seconds), and can be significantly higher than traditional Wall Street.
• Transparent: Everyone involved can see the full set of transactions (private corporations rarely grant that kind of transparency)

Technologies Used

• Lending: Lend out your crypto and earn interest and rewards every minute - not once per month.
• Getting a loan: Obtain a loan instantly without filling in paperwork, including extremely short-term “flash loans” that traditional financial institutions don’t offer.
• Trading: Make peer-to-peer trades of certain crypto assets — as if you could buy and sell stocks without any kind of brokerage.
• Saving for the future: Put some of your crypto into savings account alternatives and earn better interest rates than you’d typically get from a bank.
• Buying derivatives: Make long or short bets on certain assets. Think of these as the crypto version of stock options or futures contracts.