DeFi Basics

Why smart contracts are the engine behind new profitability opportunities in DeFi

This article explores the key concepts and applications of DeFi and shows how it can shape the future of payments and investing.

Decentralized Finance (DeFi), is transforming the financial world by enabling decentralized, public and transparent systems. How sustainable is this revolution and can it contribute to a better future?

In Decentralized Finance (DeFi), capital is placed in liquidity pools: financial hubs that connect traders, investors and other users in a decentralized economic system.

In this article, we explore the history, benefits and challenges of DEXs, compare them with centralised exchanges (CEXs), and discuss their future development.

Based on smart contracts (financial automation), DeFi enables users to exercise capabilities normally reserved for traditional financial service providers.

Using blockchain, a new database technology, it is possible to store, send and activate digital capital by offering it as liquidity within DeFi.