• Crypto Agent

What is DeFi? Decentralized Finance explained.

DeFi is short for Decentralized Finance. Decentralized Finance includes digital assets, protocols,  smart contracts, and dApps built on a blockchain.

DeFi is offering you control of your own assets. Since there no intermediaries handling your asset, you have complete control over your investments.

1. Open Lending Protocols

This is a digital money lending platform built on a blockchain.

MakerDAO has become the most prevalent decentralized lending protocol this year.


Stablecoins are blockchain-issued tokens designed to hold on to a specific value. This is usually done by pegging it with fiat currencies like the US dollar, but oftentimes with other assets like gold. Stablecoin incorporates collateral to accommodate for the price variation.

3.Exchanges and Open Marketplaces

Unlike centralized exchanges like Coinbase, decentralized exchanges have peer-to-peer transactions of digital assets between two parties on the blockchain with no third-parties involved

4. Issuance and Invest Management Platforms

As more players especially institutions enter open financial markets, these issuance platforms and investment management frameworks are likely to gain momentum rapidly.

The DeFi market is tiny compared to traditional finance, but it has picked up its pace rapidly since last year. With more projects and financial dApps we can expect to reach a genuinely decentralized financial reality where the traditional finance market is interoperating with digital assets and blockchain in perfect sync.