Technology, Business

August 26, 2020

Over $7 billion is now locked in cryptocurrency applications

Source: Defipulse.com 

The Gist

Decentralized finance protocols have seen an explosion in popularity in recent months. 

The List

  • Decentralized finance (or DeFi for short) consists of an ecosystem of automated financial applications built on cryptocurrency blockchains. 
  • These applications offer the same services as legacy financial institutions such as lending, borrowing, and saving. 
  • The difference is that there is no "middle man", allowing participating users to capitalize on much higher interest rates on their savings and lent assets. 
  • Users can also borrow cryptocurrency in a trustless manner (no ID or credit checks required). 
  • Although DeFi applications carry some degree of risk, many have been rigorously audited to protect users from losing their funds. 
  • Most applications also allow users to withdraw their assets at any time without penalty. 

Additional information

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