DeFi is short for “decentralized finance,” an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries.
- Disintermediated: People can have direct control over their assets.
- Non-custodial: Reduces the risks of censorship, dependence on monetary policies or losing money from centralized hacks.
- Open: DeFi is the first sign of financial hope for unbanked populations.
- CBDC Stablecoins
DeFi principles answer true economic constraints
DeFi is a strong adoption case for the blockchain technology, based on economic agents autonomy, inclusivity. Services aim at being swift, transparent and available 24/7.
- Users can access any financial services while technology facilitates inclusion. No constraints linked to identity or situation, no hidden terms other than the ones displayed on the smart-contract.
- Individuals are free to innovate and deploy their own services on-chain. A common basis of open-source code for improving and deploying services, limiting market cartelization.