Decentralized Finance (DeFi) is an open and transparent financial product and service that can be used by anyone via a blockchain (Ethereum), without going through a third party (centralized). Some examples of well-known DeFi projects such as Maker (MKR), Aave (AAVE), Yearn Finance (YFI), Compound (COMP), Curve Finance (CRV) etc.
Advantages of DeFi
No permissions, No intermediaries, Immutability, No data manipulation, Transparency, Savings Apps, Lending and Borrowing Applications, Tokenization etc.
Disadvantages of DeFi
Scalability of blockchain hosts that often crash/slow, High gas fees, Uncertainty and instability of the blockchain, Liquidity concerns so many users don't trust DeFi systems.
How to Use DeFi
Users must have a crypto wallet that can interact with dApps like Metamask, Trust wallet etc. Users must have Ether coins or ERC-20 tokens to be able to transact. But currently there is also DeFi that uses the BSC blockchain and uses BNB for transactions.
Advantages of DeFi
No permissions, No intermediaries, Immutability, No data manipulation, Transparency, Savings Apps, Lending and Borrowing Applications, Tokenization etc.
Disadvantages of DeFi
Scalability of blockchain hosts that often crash/slow, High gas fees, Uncertainty and instability of the blockchain, Liquidity concerns so many users don't trust DeFi systems.
How to Use DeFi
Users must have a crypto wallet that can interact with dApps like Metamask, Trust wallet etc. Users must have Ether coins or ERC-20 tokens to be able to transact. But currently there is also DeFi that uses the BSC blockchain and uses BNB for transactions.
