What is DeFi aka Decentralized Finance?

Banking has always meant bankers, the people who arrange everything from savings accounts to synthetic collateralized debt obligations. But what if computer code could take their place? That’s the goal of what’s known as decentralized finance, or DeFi, a movement that’s grown out of a decade of experimentation with cryptocurrencies. A DeFi world could be one where money flows more efficiently and more fairly, its proponents say, pointing to platforms where users are boasting of hefty returns. Critics say that DeFi is more likely reinventing the hype, wild speculation and money-losing possibilities of crypto.

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[slovokia]

So basically Defi is just financing crypto market makers, brokers and indirectly speculators. In the non crypto world entities would be required to have capital at risk themselves to guard against their customers losing money. In the Defi world the lender assumes all those risks (for example the risk that the collateral backing the loan suddenly gaps down in price).

[Mr.Calabaza]

I love ur videos! Can you claim smth about Mental Token? I'm interested in it and want some expert point of view.

[bgieseler]

This Leigh guy is such a liar. You’re teaching sophisticated investors the base concept of diversification in your “intro to crypto” spiel? Something doesn’t add up there…