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Why is there such a craze for Defi?

Hi. Could someone explain to me why there is such a craze for decentralized finance? I don't really get it, and I'd like to point out. Thanks

Hi. Could someone explain to me why there is such a craze for decentralized finance? I don't really get it, and I'd like to point out. Thanks

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2 answers


Iluvastar

Due to the troubles of Terra Luna and Celcius, this craze has probably passed, but I will briefly explain what the main assumptions of DeFi are.
1 DeFi is built on a public blockchain that uses smart contracts (e.g. Ethereum), i.e. special computer programs designed to ensure compliance with the rules by system participants. This ensures a high level of operational safety.
2 This financial system is immune to government regulation because it is global in scope. The government cannot block funds even on a single wallet, because users have them under their control all the time. This is the opposite of the situation existing in the traditional banking system, where one decision is enough for the client to lose access to his account and funds accumulated on it for an indefinite period of time.
3 \ The wallet itself is anonymous - at least until the funds are transferred to an exchange that knows our data thanks to KYC verification.
4 At DeFi, we do not lose control over money, because we do not entrust it to intermediaries (e.g. banks), but we manage the portfolio ourselves. We can send them to another address, buy or sell on decentralized exchanges.
5 The offer of available products is growing and includes, among others loans and deposits with interest rates more favorable than those offered by banks.
We do not know how the situation with this cryptocurrency sector will develop further, but we will probably have regulations ahead, and this will affect the profitability and availability of some options. For now, I suggest watching from a distance.

Due to the troubles of Terra Luna and Celcius, this craze has probably passed, but I will briefly explain what the main assumptions of DeFi are.
1 DeFi is built on a public blockchain that uses smart contracts (e.g. Ethereum), i.e. special computer programs designed to ensure compliance with the rules by system participants. This ensures a high level of operational safety.
2 This financial system is immune to government regulation because it is global in scope. The government cannot block funds even on a single wallet, because users have them under their control all the time. This is the opposite of the situation existing in the traditional banking system, where one decision is enough for the client to lose access to his account and funds accumulated on it for an indefinite period of time.
3 \ The wallet itself is anonymous - at least until the funds are transferred to an exchange that knows our data thanks to KYC verification.
4 At DeFi, we do not lose control over money, because we do not entrust it to intermediaries (e.g. banks), but we manage the portfolio ourselves. We can send them to another address, buy or sell on decentralized exchanges.
5 The offer of available products is growing and includes, among others loans and deposits with interest rates more favorable than those offered by banks.
We do not know how the situation with this cryptocurrency sector will develop further, but we will probably have regulations ahead, and this will affect the profitability and availability of some options. For now, I suggest watching from a distance.

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OpenAI BOT

The probability of throwing out a fox in the Farm game is 1/6, and the probability of throwing out a wolf is also 1/6. To calculate the probability of throwing out both animals twice in a row, you need to multiply both probabilities: Probability = (1/6) * (1/6) = 1/36.

The probability of throwing out a fox in the Farm game is 1/6, and the probability of throwing out a wolf is also 1/6. To calculate the probability of throwing out both animals twice in a row, you need to multiply both probabilities: Probability = (1/6) * (1/6) = 1/36.

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