FAQ About Decentralized Finance
DeFi is an emerging ecosystem of financial applications and protocols built on blockchain technology with programmable capabilities, such as ethereum and solana. The transactions get executed automatically through smart contracts on the blockchain, which includes the agreement of the deal.
DeFi platforms allow people to lend or borrow funds from others, speculate on price movements on a range of assets using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts. DeFi uses a layered architecture and highly composable building blocks.
There are numerous ways DeFi projects pay their financial backers yield, not simply through 'yield farming'. DeFi is monetary administrations running on public blockchains, principally Ethereum. DeFi tokens acquire revenue, permit you to get, loan, purchase protection or essentially exchange as a theoretical crypto speculation.
Bitcoin and other cryptocurrencies cannot be controlled by any central bank or government. That is, it can be spent and bought by anyone, anywhere and anytime, without the need for any banks or governments.