TRIFI SERIES | EPISODE 3 đ§©
DECODING DEFI: WHEN CODE BECOMES THE MIDDLEMAN
We covered TradFi.
We covered CeFi.
Now comes DeFi.
DeFi = Decentralized Finance â financial services built on blockchain networks using smart contracts instead of relying entirely on a central institution.
WHAT CAN YOU DO?
đ Swap â exchange one token for another
đ° Lend & Borrow â supply assets or borrow against collateral
đ§ Provide Liquidity â contribute assets to liquidity pools
đ Use DApps â interact directly with blockchain-based applications
REAL-LIFE EXAMPLE
Instead of depositing funds with a traditional bank or centralized platform, you connect a self-custodial wallet to a DeFi application and interact with its smart contracts.
The rules are executed by code on the blockchain.
But DeFi doesn't mean ârisk-free.â
Smart-contract vulnerabilities, market volatility, liquidity risks and wallet security are all important considerations.
So now we have three worlds:
TradFi â Institutions
CeFi â Centralized platforms
DeFi â Blockchain & smart contracts
But what happens when these worlds start connecting?
NEXT â EPISODE 4: DECODING TRIFI
#Binance #TriFi #defi
DECODING DEFI: WHEN CODE BECOMES THE MIDDLEMAN
We covered TradFi.
We covered CeFi.
Now comes DeFi.
DeFi = Decentralized Finance â financial services built on blockchain networks using smart contracts instead of relying entirely on a central institution.
WHAT CAN YOU DO?
đ Swap â exchange one token for another
đ° Lend & Borrow â supply assets or borrow against collateral
đ§ Provide Liquidity â contribute assets to liquidity pools
đ Use DApps â interact directly with blockchain-based applications
REAL-LIFE EXAMPLE
Instead of depositing funds with a traditional bank or centralized platform, you connect a self-custodial wallet to a DeFi application and interact with its smart contracts.
The rules are executed by code on the blockchain.
But DeFi doesn't mean ârisk-free.â
Smart-contract vulnerabilities, market volatility, liquidity risks and wallet security are all important considerations.
So now we have three worlds:
TradFi â Institutions
CeFi â Centralized platforms
DeFi â Blockchain & smart contracts
But what happens when these worlds start connecting?
NEXT â EPISODE 4: DECODING TRIFI
#Binance #TriFi #defi