DeFi – Decentralized Finance
DeFi is an open, permissionless ecosystem built on blockchain that enables all kinds of financial applications. This alternative financial system shall be accessible to everyone and should neither depend nor be able to be shut down by any central authority. In 2020, billions of USD are locked in smart contracts; basic financial instruments & crypto-unique functionalities such as flash loans are available, and complex derivative products are being built. Every financial service you know from the traditional world should be enabled in this new parallel financial system. In order to make this vision come true, protocols run on open software and decentralized networks which allows others to build on them and combine multiple protocols (“Money Legos“). Note that DeFi is very experimental and participation is a lot riskier than holding Bitcoin or Ethereum since smart contract risk of composable projects adds up.
What can you do today in decentralized finance?
You can already do almost all the financial activities you know from the real world. Complex products are being built for sophisticated investors.
Blockchain projects often pay their contributors in their own cryptos. You can work for bounties, grants or full-time and get paid in crypto.
Once you’ve acquired crypto with your FIAT money (USD) you can take self-custody and securely store & save it without a bank account.
You can use your cryptos to pay for your bills and food at 1000+ merchants in offline & online stores. You can also donate with crypto.
Lend & Borrow
You can lend cryptocurrency to other people or specific protocols and earn interest. You can also take out loans with a certain collateral.
Staking is similar to lending. You add your funds to a protocol and you receive interest payments for the time you “locked” your funds there.
You can exchange one of your cryptocurrencies against another crypto asset on decentralized exchanges.
You’re able to trade synthetic assets – representations of other assets. Projects also work on implementing futures, forwards, options & swaps.
You have many yield opportunities in DeFi. You can use robo advisors or projects that track the market and implement (auto-)strategies.
More & more projects..
The permissionless ecosystem enables new projects daily and we see improvements on lending, DEXs, yield strategies, Defi+NFT..
All Defi projects
We list all DeFi projects and showcase solutions below to help people learn about this new financial system, and find projects & partners!
Let’s get you started
These websites are great to get started with DeFi. Once you understand basics & risks, you may wanna look into DEXs, aggregators & projects.
A Beginner's Guide to Defi
Here’s an easy intro to DeFi, it’s difference to traditional finance and why such a permissionless financial system is so powerful.
DefiPulse - Zero to DeFi
DefiPulse provides great data and insights to DeFi. Here’s an in-depth introduction to DeFi and the first money legos.
DefiPrime - Info
DefiPrime is a media outlet solely focused on Defi with a focus on analytics for Defi projects and the Defi space.
Bankless - Starters guide to going bankless
Ryan & his guest writers share insights to DeFi, guides to get started, tactics & investment strategies to succeed in DeFi.
DefiRate - Defi Insights
DefiRate provides reports, statistics, project analyses and comprehensive guides to get started with DeFi.
Coingecko - DeFi Top 100
Coingecko lists DeFi assets quicker than comparable websites. They’ve introduced a great list with top DeFi assets.