DeFi is Decentralized Finance, and It is an open-source financial ecosystem that allows the user to authorize their digital transactions. DeFi is a Blockchain-powered application that is exclusively run on the blockchain network.
Key Features of DeFi
- Highly Efficient
- Eliminate Geographical Barriers
- Complete Control Over Digital Assets
DeFi allows users to authorize their financial transactions and digital assets. It is an Ecosystem built on a Decentralized method and blockchain-powered application that mainly works with the smart contract for lending and borrowing the assets on the liquidity pools. Interest and rewards are given as return for users who pool their digital assets in the liquidity pools. Where it provides the salary to the farmer who doesn't even have a bank account but they can get their salary through their mobile phones. the unbanked part of the population is the successors of Decentralized Finance development. Decentralized Finance (DeFi) is being developed on platforms like Ethereum, EOS, TRON, and IOST.