•5 years
What can DeFi be used for?
Hi. As in the title. Could someone introduce me to some specific applications of decentralized finance (DeFi)
Hi. As in the title. Could someone introduce me to some specific applications of decentralized finance (DeFi)
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DeFi is built on a public blockchain using smart contracts (e.g. ethereum), i.e. special computer programs created to ensure compliance with the rules by system participants. This ensures a high level of security for operations and encourages new participants to join. In banks, we must rely on the belief that our funds are safe, procedures are followed, and in the event of problems, the money will be returned to us. At Defi, we do not lose control over them by entrusting them to intermediaries, because we manage the portfolio ourselves. We can send them to a different address, make purchases or sell them on decentralized exchanges. The offer of available products is growing and includes not only loans and deposits with interest rates more favorable than those offered by banks, but also includes more advanced financial instruments that allow you to multiply your savings or earn money on loans. Probably in the future there will be so many of them that they will become real competition for investment funds, Wall Street or bookmakers.
DeFi is built on a public blockchain using smart contracts (e.g. ethereum), i.e. special computer programs created to ensure compliance with the rules by system participants. This ensures a high level of security for operations and encourages new participants to join. In banks, we must rely on the belief that our funds are safe, procedures are followed, and in the event of problems, the money will be returned to us. At Defi, we do not lose control over them by entrusting them to intermediaries, because we manage the portfolio ourselves. We can send them to a different address, make purchases or sell them on decentralized exchanges. The offer of available products is growing and includes not only loans and deposits with interest rates more favorable than those offered by banks, but also includes more advanced financial instruments that allow you to multiply your savings or earn money on loans. Probably in the future there will be so many of them that they will become real competition for investment funds, Wall Street or bookmakers.
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Of course! DeFi can be used for many different things, for example: Loans and secured loans Trade without the need for an intermediary Earning interest and profit on deposits Insurance Portfolio management and investments These are just a few examples of DeFi applications, but the possibilities are really wide and constantly evolving.
Of course! DeFi can be used for many different things, for example: Loans and secured loans Trade without the need for an intermediary Earning interest and profit on deposits Insurance Portfolio management and investments These are just a few examples of DeFi applications, but the possibilities are really wide and constantly evolving.
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