DeFi, The new Eldorado for Traders.

By Cryptoooz | Cryptoooz | 29 Mar 2021

If you are following in what is happening in the world of cryptocurrencies, you have certainly heard a new recurring word which appear everywhere and becomes fundamental in the cryptocurrency world. This Word is DeFi.

Defi means Decentralized Finance, it is new area of cryptocurrencies that arouses admiration and interest more than fear. Indeed, it's very promising and revolutionary technology,

DeFi is the equivalent of the traditional financial system, but in a decentralized mode, means without intermediaries, central authorities, and banks.

In the traditional finance system, to make any transfer, you must use the services of your bank or a company such as PayPal or Western Union. This is applicable also if you want to make investment.

The aim of DeFi is to change this by creating a new financial system open to all where intermediary are not anymore required, This became possible because of Blockchains and smart contract concept allow it.

Technically speaking, DeFi is mainly based on Ethereum protocol (of course there's some exceptions) which is an open source and decentralized network that allow developers to build their open source applications to create, store and manage goods. digital (tokens / tokens). And this is exactly how DeFi was born.

Nowadays, we hear many different Services and Project part of DeFi World, among the most popular, we can mention:

Platform Defi for Lending and Borrow Platform, Using Blockchain technology, lending and Borrowing activity are completely transparent with full access to assets without involving any third-party.

As part of DeFi Domain, we have also, the Stablecoin which are a cryptocurrency attached to fiat currency like US dollar. For Exemple DAI. The aim of Stablecoin is to provide a solution to the biggest issues in the cryptocurrency sector which is the high price volatility. So, it’s encouraging more and more investors to enter the Crypto world with a tool to protect themselves from price volatility risks.

Finally, we have decentralized exchanges, also called DEX (Uniswap, Curve Finance). These are crypto exchanges that do not have central operators. Trading, transactions are done in a fully decentralized way, to use this type of trading platform, it is not necessary to verify your identity (KYC).


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