Definition of DeFi

DeFi, the acronym for Decentralized Finance emerged in mid-2019. This financial technology is based on secure, distributed ledgers similar to those used by cryptocurrencies. Its currency is cryptocurrency.

DeFi is opposed to centralized finance characterized by the holding of money by institutions and banks. In fact, DeFi eliminates these financial intermediaries by allowing users to lend, trade and borrow through software. The database is distributed and thus accessible to all.

How to use DeFi?

DeFi is used through software: Dapps, which works thanks to the blockchain.

Advantages of DeFi

– No more fees charged by institutions and banks,

– Fast transfer,

– Decentralized finance applications (DApps) that give users more control.

Le staking présente de nombreux avantages.
Malgré les avantages que le staking peut présenter, celui-ci est aussi soumis à de nombreux risques.

Disadvantages of DeFi

– Unregulated system: hacking and scamming,

– Energy intensive,

– Stability questioned.