Overview

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)
  • Derivatives
  • Insurance
• Challenges associated with DeFi