Meaning of DeFi
DeFi is a disyllabic acronym which stands for Decentralized Finance. Having said that, the next question that would naturally bog your curiosity is “what is decentralized finance?” Decentralized Finance is an economic concept and a financial system characterized by the concept of reducing the concentration of financial activity around one central authority. What this means is that the central authority responsible for the control of finances would be broken down into small units that would jointly wield authority over the financial ecosystem. Modern-day examples of mechanisms for decentralized finance are protocols, applications developed from blockchain, digital assets, and mobile applications. These different products which are part of DeFi are called Open Finance Structures. This is because it is a collective system that integrates normal financial practices in a system.
The concept of DeFi allows for a build-up of many constituent financial devices in a decentralized order. Another catch is that these systems can be modified, re-modified, and internalized following your preference.
What Does DeFi Offer?
Just as the concepts suggest. The diffused central autonomy is shared amongst individuals is the finance industry. And this has the effect of giving each and everyone control over their own assets. This freedom to control one’s finances in diverse ways is the hallmark of the DeFi. We can feel the presence of the DeFi in the way trades are carried out on trading many crypto websites, how crypto is now purchased from exchange rooms etc. The finance industry is more open and accessible to all investors.