Intro to DeFi

DeFi stands for Decentralized Finance. In contrast, is Centralized Finance which is the traditional legacy system, through banks and other financial intermediaries.

In Centralized Finance, we have systems that are in place to “keep the consumer safe” and to ensure profit for the financial intermediaries of Wall Street. If you think banking services are free, think again. Your bank uses the capital that you have parked with them to loan money to others who wish to borrow. The loans are repaid with interest, which your bank kindly shares with you for assuming some risk of non-payment of your own money. Oh…