What's DEFI

DeFi is known as Decentralized Finance, which means "decentralized finance" or "distributed finance". In contrast to traditional centralized finance, it refers to various applications in the financial field built on an open decentralized network, where users no longer need to participate in the financial market with the assistance of a centralized institution, but can use open source software in the decentralized network to obtain, trade and borrow assets. In layman's terms, it is the creation of a new financial system that is open to all, without the need for intermediaries such as banks. DeFi's goal is to create a multi-faceted financial system that uses blockchain technology and cryptocurrencies as a foundation to recreate and improve the existing financial system. Currently, almost all DeFi projects are running on the Ether blockchain, and smart contracts are the main building blocks of DeFi. The most common types of DeFi Dapps today are Compound, MakerDAO, Synthetix, decentralized exchanges (e.g., Uniswap), and others.