What is Defi

DeFi is an umbrella term for financial products and services that can be accessed by anyone who can use Ethereum (with an internet connection). With DeFi, the market is always open and there is no centralized authority that can block payments or deny access to anything. Slow services that previously had the potential for human error were replaced by code that anyone could inspect and review, becoming automatic and secure.
It’s a thriving crypto economy where you can lend, borrow, go long/short, earn interest, and more. Crypto-savvy Argentines have used DeFi to escape serious inflation. Companies have already started paying their employees in real time. Some have taken out or paid off loans worth millions of dollars without even requiring any personal identification.

Starting with Bitcoin…
In a way, Bitcoin was the first DeFi application. Bitcoin allows you to truly own and control value and send it anywhere in the world. It provides a way for a large number of people who do not trust each other to agree on a ledger of accounts without the need for a trusted intermediary. Bitcoin is open to anyone, and no one has the right to change the rules. The rules of Bitcoin, such as scarcity and openness, are written into the technology. Unlike traditional finance, where the government can print money to devalue your savings, and institutions can shut down the market.
Ethereum is based on this. Just like Bitcoin, the rules don’t change for you and everyone has access. It also makes the digital currency programmable, using smart contract technology to make its value go beyond savings and transactions.

What can you do with DeFi?
There are decentralized alternatives to most financial services. But Ethereum also opens up opportunities to create entirely new financial products. This is an ever-growing list.
 Send money anywhere in the world
 Move funds around the world
 Access to stable currencies
 Mortgage
 Unsecured borrowing
 Start cryptocurrency deposits
 Trading tokens
 Expand your portfolio
 Fund your inspiration
 Purchase insurance

Building DeFi
DeFi is an open source movement. DeFi protocols and applications are open, and you can check, fork, and innovate by yourself. Because of this layered stack (they all share the same underlying blockchain and assets), protocols can be mixed and matched to unlock unique combination opportunities.