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Yarazagh

DeFi concept with simple tongue

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For the today, I didn't understand the concept and method of Defi ! These projects that join the Defi system from where to get the money and how to increase its price in a short time! I hope to understand how this is possible and what is meant by decentralized finance
Thank

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I have no information about Defi concepts i have not using Defi so you can add more valuable information about Defi so many pepoles helps the post and they try to learn some new thing 

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First of all, we should understand the concept of DeFi in the most accurate and simple way: DeFi = decentralized finance = an economy that operates on everyone's interactions, not manipulated by power centralized in government hands.
Thus, exchanges, fundraising - lending - retrieval platforms, blockchains, crypto wallets are all part of DeFi.
However, at present we call DeFi = projects based on liquidity pool together, even though they are just a part of DeFi.
These projects work as follows: the investor locks a token in the pool and receives 1 amount of the project token. The project token can be used to vote for project decisions. That pool contains many tokens and serves the operation of an exchange. When the exchange uses the tokens in that pool, the fee become profits and profits are divided equally among those who locks the tokens in the pool. In addition, some projects have a mechanism to increase the value of their own token.

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You lend your tokens as collateral into platforms and receive an interest. Then you can borrow some other tokens with more interest but you can also get paid back something extra that you can trade in exchanges. Yet there is not a real life application yet. It is all done in the crypto world and nothing else is accepted as collateral.

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You lend your tokens as collateral into platforms and receive an interest. Then you can borrow some other tokens with more interest but  you can also get paid back something extra that you can trade in exchanges. 

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