What is DeFi? (Decentralized Finance Animated)

Summary

Whiteboard Crypto explains Decentralized Finance — what it is, how it differs from traditional finance, and the key building blocks like lending protocols, DEXs, and liquidity pools. Covers risks as well as opportunities.

Key Concepts

Things To Remember

• DeFi replaces banks and brokers with smart contracts.
• Anyone with a crypto wallet can access DeFi — no ID or credit check required.
• DeFi protocols carry smart contract risk — bugs can cause loss of funds.
• High DeFi yields often come with commensurate high risks.

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