What is Decentralized Finance (DeFi)?

DeFi (or “decentralized finance”) is “an umbrella term for financial services on public blockchains.

With DeFi, one can do most of the things that banks support — earn interest, borrow, lend, buy insurance, trade derivatives, trade assets, and more — but it is faster and does not require paperwork or a third party.

As with cryptocurrency generally, DeFi is global, peer-to-peer (meaning directly between two people, and not routed through a centralised system), pseudonymous, and open to all.

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