Need Explanation on Defi

[promise444c5]

Lately have been trying to get the full details explanation on Defi but I don't seem to get a suitable one .

I need to know It's importance and how it works not in term of the token.
Also , what does the token has to do with it or is it unrelated at all??

[1714648219]

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[1714648219]

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[Charles-Tim]

Those, like banks are centralized institutions, they are third parties. With DeFI, not third parties with financial transactions. That is what supposed to be the meaning, but many of the them are not completely decentralized.

To understand more about it, read these:

https://www.investopedia.com/decentralized-finance-defi-5113835#:~:text=Decentralized%20finance%2C%20or%20DeFi%2C%20uses,transact%20financially%20with%20each%20other.
https://www.linkedin.com/pulse/releasing-financial-freedom-how-earn

[cytpoway121]

Lately have been trying to get the full details explanation on Defi but I don't seem to get a suitable one .

I need to know It's importance and how it works not in term of the token.
Also , what does the token has to do with it or is it unrelated at all??

This is a generic message or lets call it request; and with this approach you would not be able to understand what defi is.
In a broader general sense; defi means decentralized finance.

• if you relate it to a token; it indicates freedom for everyone either young, or old or middle age to be able to mint/create a token. Thats decentralization
• if you relate it to what a token has to do; then defi says that, everyone has the freedom, choice and the opportunity to freely issue a token and peg an utility to the token contract.

Either token creation, token contract utility, token launch, token sales, and even trading of tokens; they are all related to defi. So if you specify even further more what you want to know about in DEFI; You will get more help and explanations definitely.

Ball is in your court.

[cryptoaddictchie]

Lately have been trying to get the full details explanation on Defi but I don't seem to get a suitable one .

I need to know It's importance and how it works not in term of the token.
Also , what does the token has to do with it or is it unrelated at all??

Defi stand for decentralized finance. Well to simply explain defi is like gauging the ability of a platform to incur rewards and interest like whats banks doing. Lend, borrow, repay, interest. Its simply a non decentralized approach with higher apy or percentage compared to bank in an anonymity state. Like you manage it on your own and no one will do it for you. No strings attach process to gain more profits.

[bluebit25]

Lately have been trying to get the full details explanation on Defi but I don't seem to get a suitable one .

I need to know It's importance and how it works not in term of the token.
Also , what does the token has to do with it or is it unrelated at all??

If you feel like the concept is still quite vague, then I think you should talk about the products appearing in this space and the DEX and CEX use cases.

Your assets belong to you, including your holdings of coins/tokens in your personal wallet. And whether you use some CEX like Binance, HTX, OKX,... and obviously your assets in those exchanges are held by that service and you are only viewing your assets on the service, and when a problem occurs, you absolutely do not have too much initiative. And in contrast to DEX, the asset is managed by you, and how you like to use it is your way.

That's just a basic example of Defi products at work in the space, and while not entirely beneficial, it certainly provides a clearer view of freedom and fairnes.

[criptoevangelista]

As the name says, decentralized finance, in this world you have access to financial tools that previously only institutions had access to, such as providing liquidity, lending money and everything else.

You can even do all this anonymously.

Btc is the decentralized virtual money, Defi is the almost decentralized virtual financial system

[rat4]

DeFi applications extend the usage of cryptocurrency from the medium of exchange and store of value to a financial world. Such apps are often perceived as tightly coupled and transparent. Unfortunately, the transparency doesn't take back the power of governments as we can observe seizures ranging from stablecoin freezes. So you can get even more puzzled by searching for ideas of a zero-knowledge finance.

[mk4]

Or rather, what part do you not understand? DeFi is just people interacting with code rather than people, and with their funds being not held in custody; you should be able to get your money any time you want(unless stated otherwise, like with locked tokens, vesting, etc).

Also , what does the token has to do with it or is it unrelated at all??

It totally depends. Most DeFi platforms differ from each other. Mostly the tokens are for governance, sometimes for staking(revenue) rewards, etc.

[btc78]

DeFi is more of a system where it lets people do transactions without needing for an intermediary basically these transactions are made by sets of computers when i say transactions this can mean swapping a coin to another, borrowing, and lending

DeFi coins are basically just representations of it

[promise444c5]

Those, like banks are centralized institutions, they are third parties. With DeFI, not third parties with financial transactions. That is what supposed to be the meaning, but many of the them are not completely decentralized.

To understand more about it, read these:

https://www.investopedia.com/decentralized-finance-defi-5113835#:~:text=Decentralized%20finance%2C%20or%20DeFi%2C%20uses,transact%20financially%20with%20each%20other.
https://www.linkedin.com/pulse/releasing-financial-freedom-how-earn

Went through this but it doesn't still seem clear to me maybe going over it some couple of times and a lot of research would make me understand better, thanks for this

It totally depends. Most DeFi platforms differ from each other. Mostly the tokens are for governance, sometimes for staking(revenue) rewards, etc.

Okay so  if I am correct  I think you're saying all or most of token should be linked in one way or the other to a Decentralized Finance (Defi)

[mk4]

Okay so  if I am correct  I think you're saying all or most of token should be linked in one way or the other to a Decentralized Finance (Defi)

I mean if a certain project/platform has their own token, then of course it will be somewhat liked to it.  DeFi is a category of tokens/projects, it's not a platform. It's like categorizing banking stocks, tech stocks, etc — in crypto DeFi is also a category.

[libert19]

Out of all responses here, mk4's response was spot on.

[Sayeds56]

DeFi platforms enable investors to freely exchange their crypto assets, as well as stake them or supply liquidity of tokens pairs to receive native tokens as reward for staking and contributing liquidity. The concept of DEFI in crypto industry has been in the lime light since the bull run of 2021 attracted substantial investment. Currently, this sectors is passing through evolutionary process to develop such platforms that prioritize security and further decentralization to gain confidence of Investors.

[AnonBitCoiner]

Decentralised finance is abbreviated as a DeFi and most of the time the defi coins are consider as worthy and show profit in term of investment as compared to other type of business. Defi will work in same way that banks do as it also provides an excellent service for earning money but the main thing is that there is no involvement of third entity in defi and your payment method will be secure.

 For investment purpose most of the people are using defi because when the worth of coins get increases holder will be able to take advantage but in defi your profit will not be confirmed. Decisions and profit are based on prediction but it is also not confirm that whether these speculation will be true or untrue.