What is DeFi (Decentralized Finance)?

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DeFi is short for Decentralized Finance and is similar to Tradional Finance, with the difference that everything is done using special programs and NOT traditional banks or any traditional way as we knew in the past.

You do not need to go to the bank or to an institution to use any of the DeFi products .. you will only need a smartphone and internet. You can be in any part of the world to explore it!

That’s DeFi!
Let’s see some categories below and some applications that you may have already encountered, heard of or even used.
Categories of DeFi Protocols: Trading Platforms (Decentralized Exchanges — DEXs):
These are platforms where users can directly trade cryptocurrencies with other users. Think of them as a crypto market place where you can buy/sell and earn in a variety of different ways. Important: No middle man is needed
Example: Uniswap, SushiSwap, PancakeSwap
Loan Tools (Lending and Borrowing):
Users can lend their cryptocurrency and earn interest or borrow crypto by putting up some of the digital as collateral. DeFi is using specific smart contracts that enable this process without needing a middle man or an entity you can trust.
Example: Aave, Compound, MakerDAO
Stablecoins:
These digital currencies that are designed to have a stable value, and are usually tied to a regular currency like the US dollar. Their price remains stable, even if other crypto’s price can fluctuate.
Example: DAI, USDC, Tether (USDT)
Yield Farming:
This could be explained as putting your crypto in specific vaults, and this will earn you specific rewards (think as if earning interests in a bank)
Example: Yearn.finance, Curve Finance, Harvest Finance
Insurance Tools:
You may also find insurance DeFi platforms, and they operate similar as if you get an insurance for your car or house. These platforms operate on a blockchain and have smart contracts in place for protecting your assets based on your preferences.
Example…