DeFI

Browse through this list of DeFi (decentralized fiance) projects to find one that you want to participate in through lending, margin trading, borrowing cryptocurrencies. See below for more information about how DeFi works and why it is the future of cryptocurrency.

NameBlockchainType  
Compound FinanceETHLending
UniswapETHDEXes
AaveETHLending
MakerETHLending
KyberETHDEXes
BZxETHLending
SynthetixETHDerivatives
ForeTubeETHLending
Curve FinanceETHDEXes
BalancerETHDEXes
SushiSwapETHDEXes
dYdXETHLending
AugurETHDerivatives
Sun NetworkTRXFarm
Nexus MutualETHDerivatives
EasyFiMatic/ETHLending
InstaDappEthereumSmart wallet
Harvest FinanceEthereumAssets
mStableEthereumAssets
SerumSolanaDEXes
DFI.moneyEthereumAssets

What is DeFi?

It is simply a decentralized finance system that functions without a middle man like a bank or other financial institution. Instead of a bank, DeFi uses the Blockchain to transfer, hold, lend, and earn cryptocurrency between two parties only.

How Does DeFi Work?

To secure transactions on the Blockchain, DeFi uses Smart Contracts to generate terms and conditions. Smart Contracts act in place of a bank to ensure money is sent to the right person at the right time, allowing safe yet anonymous financial activities. Instead of providing your personal data to a bank in order to confirm trust, the network relies on mutual contracts and a community of users with the same goal.

What is DeFi Used For?

The applications for DeFi are expanding every day. So much so that its market has increased to nearly $7 billion in just a few years. So, why is it so popular? Because it can be used for any type of monetary transaction. This includes lending and borrowing tokens using cryptocurrency as collateral. Creating a decentralized exchange with complete autonomy. Joining Yield Farming where you provide liquidity in exchange for interest rewards. And, as a composing platform to share and co-create technology for future DApps (decentralized applications.)

Who Can Use DeFi?

Anyone can use DeFi who holds cryptocurrency. Most projects run on the Ethereum blockchain and use an ETH token. Ethereum is used because of its Smart Contract method, however other coins like the BTC Lightning Network who also use Smart Contracts have DeFi projects.

What Are the Risks of DeFi?

Since DeFi projects are anonymous and decentralized, in most cases, there are risks involved. Companies who create them and people who use them can all be nameless, so no one is responsible for glitches, hacks, or fraud. The technology can also be a risk factor caused by power outages or failed equipment.

For these reasons, it is important to do some research on a DeFi before making an investment. Know who is behind the scene and what their ultimate goal in the crypto community is.