De-Fi has been gaining a lot of attention these days,
But what exactly is it? & how did it go from $0 to $240B?
Let’s say you want to deposit your money in the bank to earn like 4% & then the bank takes that money and lends it out to borrowers as loans. The banks will charge higher interest on the loan, say 8%, now the difference amount is what the banks earn.💰💰
This is exactly how De-Fi works, just that there is no role of the “Banks” here, hurray 🥳🥳, it runs on blockchain. Everything is managed by a smart contract (a piece of code, which works like a bank).
De-Fi does all the functions just like banks, say
1. Lending & Borrowing
2. Insurance
3. Funding companies
4. Investing and Trading
5. Investing in stocks (yes, you heard that right)
Unlike banks, De-Fi works 24/7 most efficiently and cheaply and obviously, without any paperwork. Here, you have access to all your money at any point in time, just as you are your own bank. No KYC, no paperwork, just connect your decentralized wallet & get started.
Why should you consider using De-Fi?
1. Permission-less (as you are your own bank)
2. Instant loans (without any credit score)
3. No paperwork
4. Fast and cheaper
5. Provides Access to people who don’t have a bank account (for various reasons – not having required certificates, political rules, racism, etc.)
6. Live 24/7
It’s just a matter of time De-Fi takes over Ce-Fi (Centralized Finance)
Next newsletter topic📰: How to get into De-Fi?
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Good luck Reshi
Looking forward on this my boy 🎉🎉