question What is DeFi?

[willmel 5]

What little I know is that they are de-centralized finances where we take smart contract and link it with our ERC20 wallet in this case of the Etherscan Ethereum network. If they are something new and what I know is that the Fees are a little high.

[Maxkos 57]

It's just a hype coin. Look at YFI, now they lost every day. People buy them only after HYPE. So they give more 100x,from time they die like shit coins.

[khalidforu 51]

Defi is the decentralized finance, now a days defi is booming on ethereum platform and gets amazing returns to invest in defi platform.

[tunahanataccc 15]

defi means decentralized finance. thanks to its decentralized. it has made a lot of premium in the last 5 month. of course there are those who have scams in defi projects. for example sushi. 

[Onur0808 10]

DeFi is a decentralized exchange initiative that includes many coins such as crv. I think it will be used more in the future and it will come to a good place.

[Hiroyuki476 54]

Hi, 

In layman's terms, DeFi means that peers lend money to each other without the need for an intermediary. So, for instance, if your credit is horrendous in the real world, you can essentially borrow money via the cryptocurrency that you already have. Using your existing coins as collateral will give you the best chances of receiving the loan that you've been searching for. Although you can do innumerable things with DeFi, this tends to be the most common use for it.

Best, 

@hiroyuki476

[AhHmedDD2214 29]

In general, the term "DeFi" refers to a movement that aims to create an open ecosystem that requires no permits, is transparent to all financial services, is available to all, and operates without any central authority controlling it. This means that users will have full control over their assets and interact with this ecosystem via a peer-to-peer environment (P2P) and decentralized applications (Dapps).

[rafa31x 198]

DeFi tries to build an alternative to rigid banking systems. In addition, government regulation (or lack thereof) and a flawed financial infrastructure have allowed DeFi's projects to flourish. DeFi's market capitalization has increased dramatically in recent months, indicating growing interest in the crypt industry.

[Shimul135 21]

DeFi means decentralized finance which create bonds with finance and cryptocurrencies. DeFi is a Ethereum based platforms and which completely different from centralised finance. Now all projects are appearing on DeFi platforms.

[Gherkj34k 55]

Your post lists the most common questions. Thanks for the list. But these topics help to understand only the very essence. For beginners, little things and details pose a certain danger, which can only be learned with experience.

 

[mbohhe 51]

Defi right now is what ICO was in the 2017 bullrun. People gaining unrealistic APY in a project for a few days, sell before anyone else does and on to the next.

It's a bad thing for the trust in crypto as most will end up losing money.

After the hype period I can begin to see Defi as a great opportunity for the most.

[Fishara228 28]

I would like to reflect on the question of the date of the creation of DeFi. Personally, it seems to me that we already had some distant prototypes of what we have now about a year ago, but still, the main hype went exactly six months ago, when these projects began to bring profit.

[musaa 41]

Frankly, I don't have much information but as I understand DeFi is a decentralized investment, with whatever amount you put into an Eco system project, to get a profit or a percentage on that amount.

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[dark1night 94]

DeFi stands for decentralized finance and basically aims to provide banking services without being tied to any center. You can earn a deposit return or withdraw a loan through Defi protocols, just like banks.

[TheRealCryptoDex 39]

I have been studying about DEFI's for a while and I could not have explained better than some guys in this topic, so I just want to class all the information (for the acurate ones) here like true (at least in my humble opinion), but I would like to add somehitng more to this, and it's this; it's probably that the "Defi boom/Defi tendency" will not end never, I mean, of course it will stop to appear new defi projects every single day, but which I'm trying to say is that the defi concept itself, may become a common part of the cryptoworl from now until on, it's almost like a new goldmine, which can be exploded for many years, or at least this is the most probable scenario in a objective point of view ^^.

[dronoveduard 26]

Answering the question do we need Defi: in my opinion this is a philosophical question at the moment to which one does not have a clear answer. From one point Yes, we are moving to everything decentralised in order to make our lives free of middle men, governments banks etc. In some sense this is our movement towards freedom and yes it is good. The question is, is such freedom actually good or not. For example, it is better to have a government than to have an anarchy (imho) - the same might be true for finance as well. It May be that some centralisation is beneficial for humanity. Only history will show what is the correct answer!

[edixsonv 46]

What is DeFi?
DeFi or Decentralized Finance, is the name that is defining a great trend that is taking place around blockchain technology in recent years.
DeFi seeks to develop small traditional financial pieces but with an extra degree of transparency and decentralization. These small pieces, as if they were Lego pieces, are combinable with each other, in order to develop an entire ecosystem of small solutions that together form a great solution for finances that override the need for centralized and opaque financial financial institutions that they no longer add value.

When was DeFi created?
Nick Szabo was pointing, perhaps unknowingly, to the birth of DeFi when he presented his idea of smart contracts in 1995. That is 13 years before the creation of Bitcoin, an idea certainly ahead of its time.
However, it was not until the arrival of Ethereum in 2014, which was a radical change to this idea. Ethereum and its smart contracts allowed developers to create anything they could imagine on a blockchain. And precisely that what started with an experiment is now becoming a movement by itself, in a decentralized financial ecosystem that operates billions of dollars every month.
An ecosystem that during the years 2018 and 2019 maintained a constant development, and during the first months of 2020 it has had an unprecedented growth. It has even reached the point that it has revalued blockchain projects by allowing to create bridges between traditional finance and cryptocurrencies.

[mustaabey 35]

 

Decentralized Finance (DeFi) is a financial system built on blockchains that are open to users and are not connected to any authority or center. Its components include protocols, digital assets, dApps and smart contracts built on the blockchain.

[isther69 522]

If the DeFi project rally continues in 2021, it will be a great opportunity for cryptocurrencies to grow more. And I think DeFi will be a trend. for some time it may be a year or more.

[luthfi_2a 110]

In a very simple and clear definition, decentralized finance (DeFi) is the reshaping of lending, banking and other derivatives. On this note, Cryptocurrency is the best example of this great concept that has been adopted globally.

[serhatkvk 29]

DeFi, an acronym for decentralization and the combination of the first two letters of Finance (Finance), is generally used for digital assets, financial smart contracts, protocols and decentralized applications (DApp) built on Ethereum. In the simplest terms, it seems that we will probably see DeFi in our lives for decades, maybe even hundreds of years, which can be described as a financial software built on a blockchain and assembled like toy blocks. Along with technology, many industries and sectors leave information technology in their hands; These technologies have taken over our daily lives in many areas from digital assistants to home automation. What if we told you that the same thing can now be true for money itself?

Alex Pack, managing partner of Dragonfly Capital, defined the importance of DeFi with the following words: “DeFi's aim is to restructure the banking system in an open, unauthorized way for the whole world. You can only have this chance every 50 years. "

[Lundborg Crow 48]

Personally, I am still afraid of investing serious amounts there, since I believe that Defi is very unstable and may burst at any moment, although it is impossible to deny its huge profit over a short distance and at the moment.

[negociosactuales 58]

On 8/6/2020 at 9:36 PM, kyoukage01 said:

Recently I have been seeing posts mentioning about DeFi (decentralized finance) and the term is new to me. So I got curious and searched this forum for the question "what is DeFi" and I got 1 result from a post here by @Listing.Help . However, sadly I am not satisfied with the information on the article linked in the post.

 

So I will provide a set of related questions here for you guys to answer. Here they are:

• What is DeFi? (a more detailed explanation) (SOLVED)
• When was DeFi created?
• What is its purpose? (SOLVED)
• How widespread is its use among Bitcoin and the other coins? (SOLVED)
• Do we really have an urgent need for it? Why? (Open-ended question)
• Will it greatly affect the current low-end users of crypto? How? (Open-ended question)

You guys don't have to answer all of them, although I'd like to see them all resolved. Also, I will raise a few more questions as we go on.

 

Too technical answers might fly over my head 😓 , so answers in layman (easy) terms will be greatly appreciated.

 

If you can offer a better answer than the previous replies as well, then feel free to do so.

 

Thank you for your replies.

 

I think many have answered the questions but here is a concept of what is DeFi which its goal is to eliminate the control that governments, banks and large companies exercise over finance.

[123 15]

Most defi projects now existed are just copy cefi concepts,like DEX, dLend,dStablecoins,and so on.

For general users understanding,dEX,dLend/dBorrow,dStablecoins of DEFI are correlated with stock exchanges,banks,and central bank of Cefi.

[OTOBO 43]

Defi means decentralized finance. A fairly new technology taking advantage of blockchain to revolutionize finance.