What is Decentralized Finance (DeFi)?
DeFi stands for “decentralized finance” and refers to the ecosystem comprised of digital assets and financial smart contracts, protocols, and decentralized applications (DApps) that are being developed on top of blockchain systems.
Currently, the three largest functions of DeFi are:
- Creating monetary banking services (e.g., issuance of stablecoins)
- Providing peer-to-peer or pooled lending and borrowing platforms
- Enabling advanced financial instruments such as DEX, tokenization platforms, derivatives and predictions markets
It is growing very fast currently. More than $18 billion have been locked in different projects till January 2021, according to data published by DeFi Pulse.
Read all the latest news, press releases, updates and announcements related to Decentralized Finance.
