What is DeFi?
DeFi is financial instruments in the form of sites and applications created on the blockchain, it is an independent financial ecosystem open to all users.
What is included in the concept of DeFi?
Networks
Blockchains are a distributed database in which information about completed transactions is stored in the form of a continuous chain of blocks. It is impossible to falsify information inside this system. Depending on the blockchain (Ethereum, BSC, Solana), the speed and cost of each of your transactions will vary.
Wallets
Crypto wallets are the entry point to DeFi. This is where the crypto is stored and money transfers are made.
Coins and tokens
Any project has its own "crypt". Blockchains are coins. In the projects of these blockchains, these are tokens.
NFT
NFTs are also part of DeFi, because they are the same tokens on the blockchain, only "unique".
Dapps
Decentralized applications (Dapps) - applications that work on the blockchain. The work of such programs is based on smart contracts.
What is DeFi?
DEX (Exchange Killer)
DEX (Decentralized exchange) is a decentralized platform that allows you to exchange cryptocurrency without an intermediary in the form of an exchange. It consists of a system of smart contracts.
There is always an opportunity to earn on DEX, regardless of whether the market is falling or rising, because the tools and opportunities on decentralized exchanges are 5 times more than on CEX exchanges. Also, DEX has all the factors to show itself to the maximum in the "bull market", smart money is already actively using them, they solve the problems of their predecessors - centralized exchanges, solve problems with anonymity and security, and have more tools for earning.
Lending Protocols (Bank Killer)
DeFi Lending - protocols that make it possible to take a "loan" in one cryptocurrency against another without any intermediaries. A handy feature to get the cryptocurrency you need without selling your existing one.
The DAO (Corporation Killer)
DAO (Decentralized Autonomous Organization) - is a form of organization in which the coordination of activities takes place without centralized management, and with the help of "everyone has a vote" (in this case, everyone who owns tokens)
Stablecoins
Stablecoins are tokens whose price is tied to the price of fiat currency (most often to the dollar). This is ensured by various price maintenance mechanisms.
Bridges
Crosschain bridges are decentralized applications that allow you to transfer assets between different blockchains.
Play-to-Earn (play and earn)
P2E - games, performing certain actions in which you earn project tokens, which you can then sell.
The metaverse is a virtual space where people can interact with each other. Often uses NFT technology to create unique custom avatars.
The decentralized finance sector is steadily growing. There is an opinion that now it is profitable to invest in such DeFi tokens: Aave, Cardano, Solana and others.
As you already know, there is a problem in the financial market related to the privacy and preservation of funds, as well as the expected regulations from the states. Smart capitalists and cryptocurrency owners actively avoid regulations, centralized exchanges (CEX), KYC/AML procedures and other restrictions that seem to have overtaken us in the banking sector.