Decentralized finance, or DeFi, provides an alternative to traditional banks. Instead of having a third party in a financial transaction—a role banks traditionally played—there is no intermediary. Instead, transactions are handled automatically through technology, executed using smart contracts.
“All financial transactions and records are immutable, un-editable, securely stored on the blockchain,” says Vadim Filippov, chief science officer at Coinchange, a fintech company that generates yield for customers through blockchain-based assets. “This allows trading, lending, borrowing, insurance and other financial transactions to be automated. And with that automation, the fees generated can go to users, instead of intermediaries.”
Low risks, high returns
Demystifying crypto with yield farming
One of the biggest draws of DeFi is yield farming, which can bring higher rewards than traditional investments…