question What is DeFi?

[Albertbsk 7]

On 9/1/2020 at 6:28 AM, babaji said:

i personally believe DeFi is just fad and will fade off in few months. It is just another way to seduce people bring more money in crypto..

I thought the same when reading various comments, it is attracting fresh money and I don't think it will last long.

[123 15]

FYI JUST.

This is the most completed description about decentralized finance I read.

https://github.com/ong/awesome-decentralized-finance

[abeerelshbrawe 3]

On 8/7/2020 at 3:36 AM, 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 trading is for everyone, but it is a matter of how to deal with it, there are whales and small fish that represent us, if we know how the big fish think, then we will reap the profits without any losses

[Artugul78 91]

DEFI is short  decentralized finance. The defi is reshaping landing,banking and other sector.... Almost all defi application  are built on ETH blockchain... I think it is a very security and private system...       

[Rosarvx 965]

DeFi is specializing in money lending service the token that uses the Ethereum network, we can make transactions by our own wallet and this works fast

[Simon London 1749]

In my opinion, DeFi is the set of alternative applications and services, which work under the concepts of transparency and security, of free access, does not depend on intermediaries and operate under blockchain technology. This is a project that I consider has a great future, personally I have a lot of confidence in it and I am always monitoring it.

[Gabriels100 157]

DeFi refers to de-centralized finance, it is a finance system that is based on the blockchain to carry out transactions through smart contracts, since everything is systematized, there is relatively less risk when inventing in this. This is beginning and thanks to the ethereum 2.0 network, fees and transactions will be cheaper and faster, which will benefit this entire ecosystem, making investing in DeFi more profitable and I think it will also be more risky than a bank. This will allow us to be owners of our finances without the need for a bank and will give us the profitability that a bank charges us and does not give us for managing and operating with our money.

[Relium 424]

On 8/7/2020 at 4:36 AM, kyoukage01 said:

Does Yobit have a DeFi option on their platform? If not, are there indications where they will implement this option at some future time?

 

yes there is a defi option for yobit is available, yobit released a new coin called YoDefi and in the following days they are probably gonna open new defi platform of yobiswap. lets hope best for yobit 🙂

[cryptorios 455]

I was not satisfied with this new comer to the blockchain world, the so-called DEFI , because  honestly i dont understand it when it appeared,  recently i follow and participate  several airdrops for DEFI but  all of them are SCAM 😯

[Mahmod aljarah 1383]

Well, this is a new term for me too .. If you have collected some answers, please share them with us, so we can also learn (we are beginners)
Why use it? What is its purpose? Who can work with it? What are the reasons for their existence? ..

[Mohammad Imran 86]

Defi system is different from the bank system as it has freedom. as long as I have search I come to know that it was created in 2009 with the invention of Bitcoin. It has a lot of advantages like fast transaction with low fees in a secure way. Its growing day by day and soon the whole world will be using it

[kyoukage01 3181]

Thanks to everyone who has posted here. I will now summarize what everyone has contributed to the topic so far, the satisfactory and personally written replies at least.

• What is DeFi? (a more detailed explanation)
  Spoiler

  On 8/7/2020 at 2:17 PM, BTC Future said:

  Defi which stands for decentralized finance has an interesting concept as they automate certain procedures that would require too many middlemen in the process. Once someone defaults on his loan, collaterals are instantly liquidated. This is something that cuts every middle man involved as lawyers, judges, and all other personnel needed which can be at least 10 people performing useless jobs. 

  On 8/7/2020 at 1:41 PM, Whited35 said:

  I try my best to explain DeFi in the cryptocurrency sphere. For the centralized finance system, you know there are  generally human middlemen to track every financial activities but in the case of DeFi system, everything will be handled by smart contract i.e.no middlemen. You are utterly free to control your financial activities.

   

• What is its purpose?
  Spoiler

  On 8/8/2020 at 12:03 PM, BTC Future said:

  Right now all DeFi are just dealing with crypto lending services. I tried editing my post but I wasn't allowed. This is the image from Compound which explains how DeFi works in general:

   

  

  I remember reading that MakerDAO would accept some real-life assets as supply chain invoices and royalties from artists. This will be interesting but I doubt that anyone is willing to risk real assets with DeFi. 

  Also important is this news (link) which states that 90% of the whole DeFi market is based on 500 addresses, meaning that even less than them (perhaps maximum 100) are moving the whole DeFi market.

   

   

• How widespread is its use among Bitcoin and the other coins?
  Spoiler

  On 8/7/2020 at 1:41 PM, Whited35 said:

  Nowadays, the most of DeFi platforms are created in the Ethereum and Cosmos blockchain network.

   

• When was DeFi created?
  Spoiler

  On 7/17/2021 at 1:14 PM, XcelToken Plus said:

  DeFi was created in an August 2018 Telegram chat between Ethereum developers and entrepreneurs including Inje Yeo of Set Protocol, Blake Henderson of 0x and Brendan Forster of Dharma.

   

• Does Yobit have a DeFi option on their platform? If not, are there indications where they will implement this option at some future time?
  Spoiler

  On 11/26/2020 at 7:27 AM, Relium said:

  yes there is a defi option for yobit is available, yobit released a new coin called YoDefi and in the following days they are probably gonna open new defi platform of yobiswap. lets hope best for yobit 🙂

   

The rest of the questions are open-ended: everybody's free to post their opinions.

 

I will update this post to include additional answers whenever it is necessary.

 

Edited August 1, 2021 by kyoukage01

[Furkan Zengin 62]

Chainlink is the DeFi project with the highest market value at the moment.

[Zohaibkhizer 466]

Defi is decentralized finance. It is a distinct because it expands the use of blockchain from simple value transfer to more complex financial use cases

[kyoukage01 3181]

16 hours ago, norbercripto said:

I'm going to your last question. This is very recent and DEFIs are looking for their place in the market. It had an excellent acceptance therefore, the massive adoption caused an overheating of this tool, raising the transaction fees through the roof. This is already being solved with the BSC and xDAI networks. This offers us one more step in the evolution of cryptos since we will not depend on formal exchanges that must be subject to government regulations.

I'd prefer that you quote the question you're going to answer next time, to prevent confusion.

 

As for your post's reply, DeFi did went through the craze phase these last few months, and some of the DeFi tokens like YFI(???) reached astronomical prices in such a short time. You'd think back then that DeFi is poised for widespread adoption, but after the craze simmered down and the tokens' prices start falling will you realize that what just happened was a repeat of the ICO craze a few years back. DeFi still has a long way to go of proving itself.

 

Edited December 12, 2020 by kyoukage01

[Khan550 117]

DeFi  means decentralized finance exchanges basically these are the exchanges who is fully decentralized and also they have own coins so these are called DeFi for example uniswap is a decentralized finance exchange and UNI is there own coin so these strategy is called DeFi.

[Waseem jabbar 185]

We know that Defi is the Decenterlized Finance . Basically its a exchange that are totally Decenterlized . Actually Decenterlized Finance is basically a platform that provide the place to earn money.

[Aqsa1234 142]

We can say defi a decentralized finance. Cryptotalk gives safety to defi coins. Without any reviews and feedback it gives you loans which are helpful for the trading .

[Cleaner 2549]

defi is a decentralized finance, it is not controlled by any bank or any middleman.  This is a blockchain based service.  It is controlled by blockchain and its transaction fee is very low.  So everyone can use this defi.

[Aleena2468 43]

On 8/7/2020 at 6:36 AM, 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.

 

UPDATE: The top answers so far are in this link.

 

On 8/7/2020 at 6:36 AM, 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.

 

UPDATE: The top answers so far are in this link.

 

I will try to answer your question in as simple language as much possible, so that you can understand.

First of all DeFi stands for "decentralized finance".

Actually it is inspired from blockchain, actually in DeFi there is no bridge or central source, like if you have to do any sophisticated transactions then there will be no third party involved in it , which is actually very useful because in contrast to central source/third parties you will have more direct control over your money in DeFi, so you can do simple money transfer to more complex money transfer. So idea of DeFi is often called "open finance".

So this term is used for variety of finantial applications in cryptocurrency, and the most important one is ethereum.

 

When was DeFi created?

Well the term was created in an August 2018, Telegram chat of ETH developers and entrepreneurs, when they were discussing what to  call movement of open financial applications being built on ethereum, so the term comes out as DeFi. It have a vast history but its the most basic one.

Soory ! for not giving answer to every question but the one i have given will be helpful for your understanding.

 

 

 

[pacific 2268]

Well, the most significant thing about DeFi is that it offers transparency. All the transactions made in the DeFi ecosystem are made publicly available and every user has rights to view the source, and develop the application as required. Also, being globally accessible DeFi platforms are being enrolled in the top of blockchain and users are able to build their own interface, and complete information related to DeFi are distributed and made available to everyone.

[kyoukage01 3181]

On 3/19/2021 at 1:05 AM, Gulmia said:

I don't think that your question is suitable for this forum you have to ask some good questions that help people at this forum

This is a cryptocurrency forum, and DeFi is related to cryptocurrency. I see nothing wrong with the basic questions I raised in this topic. If anything, you should go take a closer look at the Beginners section: there are too many repetitive topics that have nothing to do with cryptocurrencies at all.

On 3/19/2021 at 1:05 AM, Gulmia said:

and i think we should not smoke while using crypto we have to focus on post and reply them

Say wut? What smoke are you talking about?

 

On 3/20/2021 at 12:46 PM, pacific said:

Well, the most significant thing about DeFi is that it offers transparency. All the transactions made in the DeFi ecosystem are made publicly available and every user has rights to view the source, and develop the application as required. Also, being globally accessible DeFi platforms are being enrolled in the top of blockchain and users are able to build their own interface, and complete information related to DeFi are distributed and made available to everyone.

Is the same can be said for some DeFi projects that turned into exit scams? Because if it does, then there won't be too much money getting looted.

https://cryptotalk.org/topic/111099-new-defi-exit-scam-yfdexfinance/

But yeah, maybe newer DeFi projects should be that way as you've said.

 

Edited March 21, 2021 by kyoukage01

[Zohi 12]

DeFi is the abbreviation for the  “decentralized finance,” .it is a platform for the financial application in the cryptocurrency. It broad the use of blockchains.DeFi is allowing users to build tools to increase trust and decrease risk . It is very important in the cryptocurrencies and it help to make better the financial situation.

[Kalisha01 82]

To be honest, I don't know anything about DeFi, but he's a user on the Ethereum network thanks to a smart contract that grants any user complete financial power over any token that uses the Ethereum network.

[Oksana Ksyusha 272]

Hello! There are different ways to earn in DeFi: staking, liquidity pools, in decentralized exchanges,  other services. But! The most important thing is lack of regulation from one center. Traditional centralized finance sector is outmoded and also there is serious state regulation. But DeFi is young and there are a lit of ways to earn and to develop.