DEFI-Changing the way of financing October 9, 2022
DEFI-Changing the way of financing <BR><BR>
DEFI-Changing the way of financing
Financial system has been manipulated throughout history to benefit dictatorial governments and as a result, just few people are now governing the whole financial system. The recent financial crisis demonstrated how much an economy may suffer from long-term problems such as debasement, recession, and inflation because power is concentrated in the hands of a few.
All those economic suffering and injustice in the financial system gave birth to a revolutionary alternative like DEFI – Decentralized Finance. It emerged as an effort to reestablish sovereignty by introducing open banking through decentralization and to help 2 billion people who lack basic financial service access.
Table of Contents
- What is Decentralized Finance?
- How DEFI is different from Traditional finance?
- Components of DeFi
- Lending and Borrowing
- Stable Coins
- Decentralized Exchanges (Dex)
- Challenges associated with DeFi