Decentralized Finance or “DeFi” is essentially conventional financial tools built on a blockchain — usually the Ethereum blockhain.
In the DeFi world, financial transactions and rules are enforced by computer code instead of a human authority or arbitrator.
The idea is to provide a new, permission-less financial ecosystem without a central authority. This allows for lending and borrowing in a decentralized manner.
Participants in the system act as their own custodian, maintaining full control of their assets while granting access to financial services.
A smart contact is an example of decentralized application (also called a dApp). One the most popular ways to run a DApp is to use MetaMask.
MetaMask is a browser plug-in that allows you to run DApps without having to run a full Ethereum node
More DEFi Resources
- Maker Dao: Offers decentralized loans, and a token that is pegged to USD
- Compound Finance: Dencentralized loans
- LoanScan: A site that tracks all the decentralize lending & borrowing offers
- TokenSets: A site where you can buy groups of crypto assets
- DeFi Prime: A catalog of DeFi resources