DeFi is an application ecosystem that provides financial services without the management of a central authority, using cryptocurrency. It offers many pros for users.
There is no central regulator, so the smart contract acts as an arbiter and enforcer at the same time. The rules are known in advance, and users can accept the rules of using a particular service or refuse it.
The source codes of DeFi applications and smart contracts are open, and everyone can check them for bugs and functionality.
To use DeFi, you only need to have some coins in your cryptocurrency wallet and be connected to the Internet.
Variety of Ways to Implement Technologies
Even now the scope of DeFi services is wide, and in the future, it’ll only expand, offering more new schemes and interesting solutions.
Using DeFi Dashboard tools, it’s possible to produce stable coins. The value of these are tied to the underlying asset.
DeFi technologies are also used on decentralized exchanges. They are based on blockchain and smart contracts. Trading on these exchanges doesn’t require KYC or disclosure of identity.
What’s more, they are used on non-custodial trading platforms. This is possible because the interaction between the borrower and the lender is done through a smart contract.
However, newcomers find it difficult to use DeFi services. DeFi.Watch eases everything, as it comprises the entire ecosystem at one place. To simplify all the processes, one may follow the instructions from the DeFi blog.